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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Old Republic International Corp | NYSE:ORI | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
-0.02 | -0.07% | 30.62 | 30.76 | 30.4092 | 30.73 | 1,386,458 | 01:00:00 |
|
|
UNITED STATES
|
|
SECURITIES AND EXCHANGE COMMISSION
|
|
Washington, D. C. 20549
|
|
|
|
FORM
|
10-Q
|
☒
|
Quarterly report pursuant to section 13 or 15(d) of the Security Exchange Act of 1934
|
|
|
for the quarterly period ended:
|
June 30, 2020
|
or
|
||
☐
|
Transition report pursuant to section 13 or 15(d) of the Security Exchange Act of 1934
|
Commission File Number:
|
001-10607
|
|
OLD REPUBLIC INTERNATIONAL CORPORATION
|
(Exact name of registrant as specified in its charter)
|
Delaware
|
|
36-2678171
|
(State or other jurisdiction of
|
|
(IRS Employer Identification No.)
|
incorporation or organization)
|
|
|
307 North Michigan Avenue
|
Chicago
|
Illinois
|
|
60601
|
(Address of principal executive office)
|
|
(Zip Code)
|
Title of each class
|
|
Trading Symbol(s)
|
|
Name of each exchange on which registered
|
Common Stock / $1 par value
|
|
ORI
|
|
New York Stock Exchange
|
Large accelerated filer
|
☒
|
Accelerated filer
|
☐
|
|
|
|
|
Non-accelerated filer
|
☐
|
Smaller reporting company
|
☐
|
|
|
|
|
|
|
Emerging growth company
|
☐
|
Old Republic International Corporation and Subsidiaries
|
|||||||
Consolidated Balance Sheets
|
|||||||
($ in Millions, Except Share Data)
|
|||||||
|
(Unaudited)
|
|
|
||||
|
June 30,
|
|
December 31,
|
||||
|
2020
|
|
2019
|
||||
Assets
|
|
|
|
||||
Investments:
|
|
|
|
||||
Available for sale:
|
|
|
|
||||
Fixed maturity securities (at fair value) (amortized cost: $9,305.2 and $8,537.3)
|
$
|
9,859.4
|
|
|
$
|
8,796.5
|
|
Short-term investments (at fair value which approximates cost)
|
795.5
|
|
|
484.3
|
|
||
Total
|
10,655.0
|
|
|
9,280.9
|
|
||
Held to maturity:
|
|
|
|
||||
Fixed maturity securities (at amortized cost) (fair value: $- and $1,058.2)
|
—
|
|
|
1,021.7
|
|
||
Equity securities (at fair value) (cost: $3,227.5 and $3,089.1)
|
3,560.1
|
|
|
4,030.5
|
|
||
Other investments
|
25.7
|
|
|
26.0
|
|
||
Total investments
|
14,240.8
|
|
|
14,359.2
|
|
||
Other Assets:
|
|
|
|
||||
Cash
|
114.0
|
|
|
78.8
|
|
||
Accrued investment income
|
86.9
|
|
|
89.3
|
|
||
Accounts and notes receivable
|
1,771.9
|
|
|
1,466.7
|
|
||
Federal income tax recoverable: Current
|
15.8
|
|
|
5.7
|
|
||
Reinsurance balances and funds held
|
207.1
|
|
|
178.4
|
|
||
Reinsurance recoverable: Paid losses
|
70.6
|
|
|
68.5
|
|
||
Policy and claim reserves
|
4,060.1
|
|
|
3,755.3
|
|
||
Deferred policy acquisition costs
|
319.5
|
|
|
325.4
|
|
||
Sundry assets
|
763.2
|
|
|
748.5
|
|
||
Total Other Assets
|
7,409.4
|
|
|
6,717.1
|
|
||
Total Assets
|
$
|
21,650.3
|
|
|
$
|
21,076.3
|
|
Liabilities, Preferred Stock, and Common Shareholders' Equity
|
|
|
|
||||
Liabilities:
|
|
|
|
||||
Losses, claims, and settlement expenses
|
$
|
10,230.9
|
|
|
$
|
9,929.5
|
|
Unearned premiums
|
2,413.1
|
|
|
2,224.7
|
|
||
Other policyholders' benefits and funds
|
194.2
|
|
|
194.4
|
|
||
Total policy liabilities and accruals
|
12,838.3
|
|
|
12,348.7
|
|
||
Commissions, expenses, fees, and taxes
|
501.0
|
|
|
550.9
|
|
||
Reinsurance balances and funds
|
898.1
|
|
|
616.0
|
|
||
Federal income tax payable: Deferred
|
43.7
|
|
|
112.2
|
|
||
Debt
|
968.1
|
|
|
974.0
|
|
||
Sundry liabilities
|
542.0
|
|
|
474.1
|
|
||
Commitments and contingent liabilities
|
|
|
|
||||
Total Liabilities
|
15,791.3
|
|
|
15,076.1
|
|
||
Preferred Stock (1)
|
—
|
|
|
—
|
|
||
Common Shareholders' Equity:
|
|
|
|
||||
Common stock (1)
|
304.0
|
|
|
303.6
|
|
||
Additional paid-in capital
|
1,305.1
|
|
|
1,297.5
|
|
||
Retained earnings
|
4,051.2
|
|
|
4,386.0
|
|
||
Accumulated other comprehensive income (loss)
|
307.5
|
|
|
77.7
|
|
||
Unallocated ESSOP shares (at cost)
|
(109.0
|
)
|
|
(64.8
|
)
|
||
Total Common Shareholders' Equity
|
5,858.9
|
|
|
6,000.1
|
|
||
Total Liabilities, Preferred Stock and Common Shareholders' Equity
|
$
|
21,650.3
|
|
|
$
|
21,076.3
|
|
(1)
|
At June 30, 2020 and December 31, 2019, there were 75,000,000 shares of $0.01 par value preferred stock authorized, of which no shares were outstanding. As of the same dates, there were 500,000,000 shares of common stock, $1.00 par value, authorized, of which 304,035,642 and 303,652,553 were issued as of June 30, 2020 and December 31, 2019, respectively. At June 30, 2020 and December 31, 2019, there were 100,000,000 shares of Class B Common Stock, $1.00 par value, authorized, of which no shares were issued.
|
Old Republic International Corporation and Subsidiaries
|
|||||||||||||||
Consolidated Statements of Income (Unaudited)
|
|||||||||||||||
($ in Millions, Except Share Data)
|
|||||||||||||||
|
Quarters Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Revenues:
|
|
|
|
|
|
|
|
||||||||
Net premiums earned
|
$
|
1,353.1
|
|
|
$
|
1,329.6
|
|
|
$
|
2,729.8
|
|
|
$
|
2,593.0
|
|
Title, escrow, and other fees
|
129.9
|
|
|
130.9
|
|
|
250.0
|
|
|
225.6
|
|
||||
Total premiums and fees
|
1,483.1
|
|
|
1,460.5
|
|
|
2,979.9
|
|
|
2,818.6
|
|
||||
Net investment income
|
108.7
|
|
|
113.0
|
|
|
222.9
|
|
|
225.1
|
|
||||
Other income
|
32.0
|
|
|
34.1
|
|
|
66.7
|
|
|
64.5
|
|
||||
Total operating revenues
|
1,623.9
|
|
|
1,607.7
|
|
|
3,269.6
|
|
|
3,108.3
|
|
||||
Investment gains (losses):
|
|
|
|
|
|
|
|
||||||||
Realized from actual transactions
|
(7.3
|
)
|
|
12.5
|
|
|
11.2
|
|
|
24.9
|
|
||||
Realized from impairments
|
—
|
|
|
(2.0
|
)
|
|
—
|
|
|
(2.0
|
)
|
||||
Unrealized from changes in fair value of
|
|
|
|
|
|
|
|
||||||||
equity securities
|
354.0
|
|
|
26.3
|
|
|
(608.7
|
)
|
|
382.0
|
|
||||
Total realized and unrealized investment
|
|
|
|
|
|
|
|
||||||||
gains (losses)
|
346.7
|
|
|
36.9
|
|
|
(597.4
|
)
|
|
405.0
|
|
||||
Total revenues
|
1,970.6
|
|
|
1,644.7
|
|
|
2,672.2
|
|
|
3,513.4
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Benefits, Claims and Expenses:
|
|
|
|
|
|
|
|
||||||||
Benefits, claims and settlement expenses
|
617.8
|
|
|
629.9
|
|
|
1,237.5
|
|
|
1,228.4
|
|
||||
Dividends to policyholders
|
6.2
|
|
|
5.3
|
|
|
9.1
|
|
|
12.9
|
|
||||
Underwriting, acquisition, and other expenses
|
836.9
|
|
|
793.5
|
|
|
1,673.8
|
|
|
1,526.9
|
|
||||
Interest and other charges
|
10.4
|
|
|
10.4
|
|
|
22.3
|
|
|
21.0
|
|
||||
Total expenses
|
1,471.5
|
|
|
1,439.2
|
|
|
2,943.0
|
|
|
2,789.4
|
|
||||
Income (loss) before income taxes (credits)
|
499.1
|
|
|
205.4
|
|
|
(270.8
|
)
|
|
723.9
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Income Taxes (Credits):
|
|
|
|
|
|
|
|
||||||||
Current
|
25.9
|
|
|
30.6
|
|
|
65.9
|
|
|
74.3
|
|
||||
Deferred
|
75.5
|
|
|
9.3
|
|
|
(129.7
|
)
|
|
71.8
|
|
||||
Total
|
101.4
|
|
|
39.9
|
|
|
(63.7
|
)
|
|
146.1
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Net Income (Loss)
|
$
|
397.7
|
|
|
$
|
165.5
|
|
|
$
|
(207.0
|
)
|
|
$
|
577.7
|
|
|
|
|
|
|
|
|
|
||||||||
Net Income (Loss) Per Share:
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
1.34
|
|
|
$
|
.55
|
|
|
$
|
(.69
|
)
|
|
$
|
1.93
|
|
Diluted
|
$
|
1.34
|
|
|
$
|
.55
|
|
|
$
|
(.69
|
)
|
|
$
|
1.92
|
|
|
|
|
|
|
|
|
|
||||||||
Average shares outstanding: Basic
|
297,523,559
|
|
|
299,418,182
|
|
|
298,915,853
|
|
|
299,341,472
|
|
||||
Diluted
|
297,776,315
|
|
|
300,752,992
|
|
|
298,915,853
|
|
|
300,580,764
|
|
Old Republic International Corporation and Subsidiaries
|
|||||||||||||||
Consolidated Statements of Comprehensive Income (Unaudited)
|
|||||||||||||||
($ in Millions)
|
|||||||||||||||
|
Quarters Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Net Income (Loss) As Reported
|
$
|
397.7
|
|
|
$
|
165.5
|
|
|
$
|
(207.0
|
)
|
|
$
|
577.7
|
|
|
|
|
|
|
|
|
|
||||||||
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
||||||||
Unrealized gains (losses) on securities:
|
|
|
|
|
|
|
|
||||||||
Unrealized gains (losses) before reclassifications,
|
|
|
|
|
|
|
|
||||||||
not included in the statements of income
|
462.4
|
|
|
138.8
|
|
|
289.2
|
|
|
313.2
|
|
||||
Amounts reclassified as realized investment (gains)
|
|
|
|
|
|
|
|
||||||||
losses in the statements of income
|
8.8
|
|
|
2.4
|
|
|
8.5
|
|
|
3.3
|
|
||||
Pretax unrealized gains (losses) on securities
|
471.3
|
|
|
141.2
|
|
|
297.7
|
|
|
316.5
|
|
||||
Deferred income taxes (credits)
|
99.2
|
|
|
29.7
|
|
|
62.8
|
|
|
66.7
|
|
||||
Net unrealized gains (losses) on securities, net of tax
|
372.0
|
|
|
111.4
|
|
|
234.8
|
|
|
249.8
|
|
||||
Defined benefit pension plans:
|
|
|
|
|
|
|
|
||||||||
Net pension adjustment before reclassifications
|
—
|
|
|
—
|
|
|
—
|
|
|
(2.6
|
)
|
||||
Amounts reclassified as underwriting, acquisition,
|
|
|
|
|
|
|
|
||||||||
and other expenses in the statements of income
|
.9
|
|
|
1.0
|
|
|
1.8
|
|
|
2.0
|
|
||||
Pretax net adjustment related to defined benefit
|
|
|
|
|
|
|
|
||||||||
pension plans
|
.9
|
|
|
1.0
|
|
|
1.8
|
|
|
(.5
|
)
|
||||
Deferred income taxes (credits)
|
.1
|
|
|
.2
|
|
|
.3
|
|
|
(.1
|
)
|
||||
Net adjustment related to defined benefit pension
|
|
|
|
|
|
|
|
||||||||
plans, net of tax
|
.7
|
|
|
.8
|
|
|
1.4
|
|
|
(.4
|
)
|
||||
Foreign currency translation and other adjustments
|
4.0
|
|
|
3.1
|
|
|
(6.5
|
)
|
|
5.4
|
|
||||
Total other comprehensive income (loss)
|
376.8
|
|
|
115.4
|
|
|
229.8
|
|
|
254.8
|
|
||||
Comprehensive Income (Loss)
|
$
|
774.5
|
|
|
$
|
280.9
|
|
|
$
|
22.7
|
|
|
$
|
832.6
|
|
Old Republic International Corporation and Subsidiaries
|
||||||||
Consolidated Statements of Cash Flows (Unaudited)
|
||||||||
($ in Millions)
|
||||||||
|
|
Six Months Ended
|
||||||
|
|
June 30,
|
||||||
|
|
2020
|
|
2019
|
||||
Cash flows from operating activities:
|
|
|
|
|
||||
Net income (loss)
|
|
$
|
(207.0
|
)
|
|
$
|
577.7
|
|
Adjustments to reconcile net income (loss) to
|
|
|
|
|
||||
net cash provided by operating activities:
|
|
|
|
|
||||
Deferred policy acquisition costs
|
|
5.9
|
|
|
(8.3
|
)
|
||
Premiums and other receivables
|
|
(301.4
|
)
|
|
(236.8
|
)
|
||
Unpaid claims and related items
|
|
208.6
|
|
|
84.6
|
|
||
Unearned premiums and other policyholders' liabilities
|
|
(23.7
|
)
|
|
33.3
|
|
||
Income taxes
|
|
(140.8
|
)
|
|
87.1
|
|
||
Reinsurance balances
|
|
244.7
|
|
|
178.0
|
|
||
Realized investment (gains) losses from actual transactions and impairments
|
|
(11.2
|
)
|
|
(22.9
|
)
|
||
Unrealized investment (gains) losses from changes in fair value
|
|
|
|
|
||||
of equity securities
|
|
608.7
|
|
|
(382.0
|
)
|
||
Accounts payable, accrued expenses and other
|
|
54.7
|
|
|
2.6
|
|
||
Total
|
|
438.3
|
|
|
313.4
|
|
||
|
|
|
|
|
||||
Cash flows from investing activities:
|
|
|
|
|
||||
Fixed maturity securities:
|
|
|
|
|
||||
Available for sale:
|
|
|
|
|
||||
Maturities and early calls
|
|
543.3
|
|
|
298.7
|
|
||
Sales
|
|
194.2
|
|
|
303.5
|
|
||
Sales of:
|
|
|
|
|
||||
Equity securities
|
|
151.6
|
|
|
208.7
|
|
||
Other - net
|
|
4.9
|
|
|
25.8
|
|
||
Purchases of:
|
|
|
|
|
||||
Fixed maturity securities:
|
|
|
|
|
||||
Available for sale
|
|
(518.1
|
)
|
|
(689.6
|
)
|
||
Equity securities
|
|
(271.2
|
)
|
|
(313.1
|
)
|
||
Other - net
|
|
(19.9
|
)
|
|
(30.9
|
)
|
||
Net decrease (increase) in short-term investments
|
|
(311.5
|
)
|
|
1.5
|
|
||
Total
|
|
(226.7
|
)
|
|
(195.1
|
)
|
||
|
|
|
|
|
||||
Cash flows from financing activities:
|
|
|
|
|
||||
Issuance of common shares
|
|
5.6
|
|
|
6.9
|
|
||
Redemption of debentures and notes
|
|
(6.5
|
)
|
|
(6.5
|
)
|
||
Purchase of unallocated common shares by ESSOP
|
|
(50.0
|
)
|
|
—
|
|
||
Dividends on common shares
|
|
(125.3
|
)
|
|
(119.4
|
)
|
||
Other - net
|
|
(.2
|
)
|
|
—
|
|
||
Total
|
|
(176.3
|
)
|
|
(118.8
|
)
|
||
|
|
|
|
|
||||
Increase (decrease) in cash
|
|
35.2
|
|
|
(.5
|
)
|
||
Cash, beginning of period
|
|
78.8
|
|
|
100.3
|
|
||
Cash, end of period
|
|
$
|
114.0
|
|
|
$
|
99.8
|
|
|
|
|
|
|
||||
Supplemental cash flow information:
|
|
|
|
|
||||
Cash paid (received) during the period for: Interest
|
|
$
|
20.7
|
|
|
$
|
20.9
|
|
Income taxes
|
|
$
|
78.0
|
|
|
$
|
59.6
|
|
|
Quarters Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Numerator:
|
|
|
|
|
|
|
|
||||||||
Basic and diluted earnings per share -
|
|
|
|
|
|
|
|
||||||||
income (loss) available to common stockholders
|
$
|
397.7
|
|
|
$
|
165.5
|
|
|
$
|
(207.0
|
)
|
|
$
|
577.7
|
|
Denominator:
|
|
|
|
|
|
|
|
||||||||
Basic earnings per share -
|
|
|
|
|
|
|
|
||||||||
weighted-average shares (a)
|
297,523,559
|
|
|
299,418,182
|
|
|
298,915,853
|
|
|
299,341,472
|
|
||||
Effect of dilutive securities - stock based
|
|
|
|
|
|
|
|
||||||||
compensation awards
|
252,756
|
|
|
1,334,810
|
|
|
—
|
|
|
1,239,292
|
|
||||
Diluted earnings per share -
|
|
|
|
|
|
|
|
||||||||
adjusted weighted-average shares (a)
|
297,776,315
|
|
|
300,752,992
|
|
|
298,915,853
|
|
|
300,580,764
|
|
||||
Earnings per share: Basic
|
$
|
1.34
|
|
|
$
|
.55
|
|
|
$
|
(.69
|
)
|
|
$
|
1.93
|
|
Diluted
|
$
|
1.34
|
|
|
$
|
.55
|
|
|
$
|
(.69
|
)
|
|
$
|
1.92
|
|
|
|
|
|
|
|
|
|
||||||||
Anti-dilutive common stock equivalents
|
|
|
|
|
|
|
|
||||||||
excluded from earnings per share computations:
|
|
|
|
|
|
|
|
||||||||
Stock based compensation awards
|
8,065,611
|
|
|
1,163,250
|
|
|
9,570,275
|
|
|
3,268,875
|
|
|
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Estimated
Fair
Value
|
||||||||
Fixed Maturity Securities by Type:
|
|
|
|
|
|
|
|
||||||||
June 30, 2020:
|
|
|
|
|
|
|
|
||||||||
Available for sale:
|
|
|
|
|
|
|
|
||||||||
U.S. & Canadian Governments
|
$
|
1,712.5
|
|
|
$
|
109.2
|
|
|
$
|
—
|
|
|
$
|
1,821.8
|
|
Tax-exempt
|
1,010.0
|
|
|
61.4
|
|
|
—
|
|
|
1,071.4
|
|
||||
Corporate
|
6,582.7
|
|
|
403.8
|
|
|
20.3
|
|
|
6,966.2
|
|
||||
|
$
|
9,305.2
|
|
|
$
|
574.5
|
|
|
$
|
20.3
|
|
|
$
|
9,859.4
|
|
|
|
|
|
|
|
|
|
||||||||
December 31, 2019:
|
|
|
|
|
|
|
|
||||||||
Available for sale:
|
|
|
|
|
|
|
|
||||||||
U.S. & Canadian Governments
|
$
|
1,842.3
|
|
|
$
|
36.9
|
|
|
$
|
.4
|
|
|
$
|
1,878.8
|
|
Corporate
|
6,694.9
|
|
|
225.5
|
|
|
2.8
|
|
|
6,917.6
|
|
||||
|
$
|
8,537.3
|
|
|
$
|
262.5
|
|
|
$
|
3.3
|
|
|
$
|
8,796.5
|
|
|
|
|
|
|
|
|
|
||||||||
Held to maturity:
|
|
|
|
|
|
|
|
||||||||
Tax-exempt
|
$
|
1,021.7
|
|
|
$
|
36.5
|
|
|
$
|
—
|
|
|
$
|
1,058.2
|
|
|
Amortized
Cost
|
|
Estimated
Fair
Value
|
||||
Fixed Maturity Securities Stratified by Contractual Maturity at June 30, 2020:
|
|
|
|
||||
Available for sale:
|
|
|
|
||||
Due in one year or less
|
$
|
1,089.0
|
|
|
$
|
1,099.7
|
|
Due after one year through five years
|
5,345.3
|
|
|
5,620.7
|
|
||
Due after five years through ten years
|
2,794.1
|
|
|
3,059.2
|
|
||
Due after ten years
|
76.7
|
|
|
79.6
|
|
||
|
$
|
9,305.2
|
|
|
$
|
9,859.4
|
|
(a)
|
Credit quality ratings referred to herein are a blend of those assigned by the major credit rating agencies for U.S. and Canadian Governments, Agencies, Corporates and Municipal issuers.
|
(b)
|
"All other" includes non-investment grade or non-rated issuers.
|
|
Less than 12 Months
|
|
12 Months or Greater
|
|
Total
|
||||||||||||||||||
|
Fair
Value
|
|
Unrealized Losses
|
|
Fair
Value
|
|
Unrealized Losses
|
|
Fair
Value
|
|
Unrealized Losses
|
||||||||||||
June 30, 2020:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Fixed Maturity Securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. & Canadian Governments
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Tax-exempt
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Corporate
|
278.1
|
|
|
16.5
|
|
|
16.8
|
|
|
3.8
|
|
|
295.0
|
|
|
20.3
|
|
||||||
|
$
|
278.1
|
|
|
$
|
16.5
|
|
|
$
|
16.9
|
|
|
$
|
3.8
|
|
|
$
|
295.1
|
|
|
$
|
20.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Number of available for sale
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
securities in unrealized
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
loss position
|
|
|
46
|
|
|
|
|
12
|
|
|
|
|
58
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
December 31, 2019:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Fixed Maturity Securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. & Canadian Governments
|
$
|
217.2
|
|
|
$
|
.3
|
|
|
$
|
53.0
|
|
|
$
|
.1
|
|
|
$
|
270.3
|
|
|
$
|
.4
|
|
Corporate
|
176.4
|
|
|
1.9
|
|
|
54.3
|
|
|
.8
|
|
|
230.7
|
|
|
2.8
|
|
||||||
|
$
|
393.7
|
|
|
$
|
2.3
|
|
|
$
|
107.4
|
|
|
$
|
1.0
|
|
|
$
|
501.1
|
|
|
$
|
3.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Number of available for sale
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
securities in unrealized
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
loss position
|
|
|
54
|
|
|
|
|
47
|
|
|
|
|
101
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Held to maturity:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Tax-exempt
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
21.7
|
|
|
$
|
—
|
|
|
$
|
21.7
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Number of held to maturity
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
securities in unrealized
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
loss position
|
|
|
—
|
|
|
|
|
8
|
|
|
|
|
8
|
|
|
Equity Securities
|
||||||||||||||
|
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Estimated
Fair
Value
|
||||||||
June 30, 2020
|
$
|
3,227.5
|
|
|
$
|
597.6
|
|
|
$
|
265.0
|
|
|
$
|
3,560.1
|
|
December 31, 2019
|
$
|
3,089.1
|
|
|
$
|
968.0
|
|
|
$
|
26.6
|
|
|
$
|
4,030.5
|
|
|
|
Fair Value Measurements
|
||||||||||||||
As of June 30, 2020:
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Available for sale:
|
|
|
|
|
|
|
|
|
||||||||
Fixed maturity securities:
|
|
|
|
|
|
|
|
|
||||||||
U.S. & Canadian Governments
|
|
$
|
1,056.4
|
|
|
$
|
765.4
|
|
|
$
|
—
|
|
|
$
|
1,821.8
|
|
Tax-exempt
|
|
—
|
|
|
1,071.4
|
|
|
—
|
|
|
1,071.4
|
|
||||
Corporate
|
|
—
|
|
|
6,955.7
|
|
|
10.5
|
|
|
6,966.2
|
|
||||
Short-term investments
|
|
795.5
|
|
|
—
|
|
|
—
|
|
|
795.5
|
|
||||
Equity securities
|
|
$
|
3,558.3
|
|
|
$
|
—
|
|
|
$
|
1.8
|
|
|
$
|
3,560.1
|
|
|
|
|
|
|
|
|
|
|
||||||||
As of December 31, 2019:
|
|
|
|
|
|
|
|
|
||||||||
Available for sale:
|
|
|
|
|
|
|
|
|
||||||||
Fixed maturity securities:
|
|
|
|
|
|
|
|
|
||||||||
U.S. & Canadian Governments
|
|
$
|
1,068.1
|
|
|
$
|
810.7
|
|
|
$
|
—
|
|
|
$
|
1,878.8
|
|
Corporate
|
|
—
|
|
|
6,907.1
|
|
|
10.5
|
|
|
6,917.6
|
|
||||
Short-term investments
|
|
484.3
|
|
|
—
|
|
|
—
|
|
|
484.3
|
|
||||
Held to maturity:
|
|
|
|
|
|
|
|
|
||||||||
Fixed maturity securities:
|
|
|
|
|
|
|
|
|
||||||||
Tax-exempt
|
|
—
|
|
|
1,058.2
|
|
|
—
|
|
|
1,058.2
|
|
||||
Equity securities
|
|
$
|
4,028.7
|
|
|
$
|
—
|
|
|
$
|
1.7
|
|
|
$
|
4,030.5
|
|
|
Quarters Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Investment income:
|
|
|
|
|
|
|
|
||||||||
Fixed maturity securities
|
$
|
72.4
|
|
|
$
|
75.2
|
|
|
$
|
147.0
|
|
|
$
|
149.8
|
|
Equity securities
|
36.8
|
|
|
35.3
|
|
|
75.0
|
|
|
70.3
|
|
||||
Short-term investments
|
.2
|
|
|
2.5
|
|
|
2.1
|
|
|
4.9
|
|
||||
Other sources
|
1.1
|
|
|
1.7
|
|
|
2.3
|
|
|
3.3
|
|
||||
Gross investment income
|
110.6
|
|
|
114.7
|
|
|
226.5
|
|
|
228.6
|
|
||||
Investment expenses (a)
|
1.9
|
|
|
1.7
|
|
|
3.6
|
|
|
3.4
|
|
||||
Net investment income
|
$
|
108.7
|
|
|
$
|
113.0
|
|
|
$
|
222.9
|
|
|
$
|
225.1
|
|
|
|
|
|
|
|
|
|
||||||||
Investment gains (losses):
|
|
|
|
|
|
|
|
||||||||
From actual transactions:
|
|
|
|
|
|
|
|
||||||||
Fixed maturity securities:
|
|
|
|
|
|
|
|
||||||||
Gains
|
$
|
2.7
|
|
|
$
|
3.6
|
|
|
$
|
3.6
|
|
|
$
|
3.7
|
|
Losses
|
(11.6
|
)
|
|
(4.1
|
)
|
|
(12.2
|
)
|
|
(5.1
|
)
|
||||
Net
|
(8.8
|
)
|
|
(.4
|
)
|
|
(8.5
|
)
|
|
(1.4
|
)
|
||||
Equity securities:
|
|
|
|
|
|
|
|
||||||||
Gains
|
1.5
|
|
|
13.1
|
|
|
21.0
|
|
|
54.3
|
|
||||
Losses
|
—
|
|
|
—
|
|
|
(1.2
|
)
|
|
(28.0
|
)
|
||||
Net
|
1.5
|
|
|
13.0
|
|
|
19.8
|
|
|
26.3
|
|
||||
Other investments, net
|
—
|
|
|
—
|
|
|
—
|
|
|
.1
|
|
||||
Total from actual transactions
|
(7.3
|
)
|
|
12.5
|
|
|
11.2
|
|
|
24.9
|
|
||||
From impairments
|
—
|
|
|
(2.0
|
)
|
|
—
|
|
|
(2.0
|
)
|
||||
From unrealized changes in fair value of equity securities
|
354.0
|
|
|
26.3
|
|
|
(608.7
|
)
|
|
382.0
|
|
||||
Total realized and unrealized investment gains (losses)
|
346.7
|
|
|
36.9
|
|
|
(597.4
|
)
|
|
405.0
|
|
||||
Current and deferred income taxes (credits)
|
72.8
|
|
|
7.7
|
|
|
(125.7
|
)
|
|
85.1
|
|
||||
Net of tax realized and unrealized investment gains (losses)
|
$
|
273.8
|
|
|
$
|
29.1
|
|
|
$
|
(471.7
|
)
|
|
$
|
319.8
|
|
|
|
|
|
|
|
|
|
||||||||
Changes in unrealized investment gains (losses)
|
|
|
|
|
|
|
|
||||||||
reflected directly in shareholders' equity:
|
|
|
|
|
|
|
|
||||||||
Fixed maturity securities
|
$
|
467.2
|
|
|
$
|
141.0
|
|
|
$
|
294.4
|
|
|
$
|
315.4
|
|
Less: Deferred income taxes (credits)
|
98.3
|
|
|
29.7
|
|
|
62.1
|
|
|
66.5
|
|
||||
|
368.8
|
|
|
111.3
|
|
|
232.2
|
|
|
248.9
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Other investments
|
4.0
|
|
|
.2
|
|
|
3.3
|
|
|
1.1
|
|
||||
Less: Deferred income taxes (credits)
|
.8
|
|
|
—
|
|
|
.7
|
|
|
.2
|
|
||||
|
3.2
|
|
|
.1
|
|
|
2.6
|
|
|
.8
|
|
||||
Net changes in unrealized investment gains (losses),
|
|
|
|
|
|
|
|
||||||||
net of tax
|
$
|
372.0
|
|
|
$
|
111.4
|
|
|
$
|
234.8
|
|
|
$
|
249.8
|
|
(a)
|
Investment expenses largely consist of personnel costs and investment management and custody service fees.
|
This space left intentionally blank
|
|
Six Months Ended
|
||||||
|
June 30,
|
||||||
|
2020
|
|
2019
|
||||
Gross reserves at beginning of period
|
$
|
9,929.5
|
|
|
$
|
9,471.2
|
|
Less: reinsurance losses recoverable
|
3,249.7
|
|
|
3,006.3
|
|
||
Net reserves at beginning of period:
|
|
|
|
||||
General Insurance
|
6,021.3
|
|
|
5,766.1
|
|
||
Title Insurance
|
530.9
|
|
|
533.4
|
|
||
RFIG Run-off
|
118.9
|
|
|
154.5
|
|
||
Other
|
8.4
|
|
|
10.8
|
|
||
Sub-total
|
6,679.7
|
|
|
6,464.9
|
|
||
Incurred claims and claim adjustment expenses:
|
|
|
|
||||
Provisions for insured events of the current year:
|
|
|
|
||||
General Insurance
|
1,178.7
|
|
|
1,181.3
|
|
||
Title Insurance
|
50.1
|
|
|
44.0
|
|
||
RFIG Run-off (a)
|
21.0
|
|
|
20.2
|
|
||
Other
|
5.8
|
|
|
8.2
|
|
||
Sub-total
|
1,255.7
|
|
|
1,253.9
|
|
||
Change in provision for insured events of prior years:
|
|
|
|
||||
General Insurance
|
(4.9
|
)
|
|
(7.1
|
)
|
||
Title Insurance
|
(10.7
|
)
|
|
(11.4
|
)
|
||
RFIG Run-off (a)
|
.6
|
|
|
(4.3
|
)
|
||
Other
|
(1.9
|
)
|
|
(1.5
|
)
|
||
Sub-total
|
(17.0
|
)
|
|
(24.5
|
)
|
||
Total incurred claims and claim adjustment expenses (a)
|
1,238.6
|
|
|
1,229.3
|
|
||
Payments:
|
|
|
|
||||
Claims and claim adjustment expenses attributable to
|
|
|
|
||||
insured events of the current year:
|
|
|
|
||||
General Insurance
|
282.5
|
|
|
301.2
|
|
||
Title Insurance
|
.9
|
|
|
.7
|
|
||
RFIG Run-off
|
.1
|
|
|
.2
|
|
||
Other
|
2.3
|
|
|
4.8
|
|
||
Sub-total
|
285.9
|
|
|
307.1
|
|
||
Claims and claim adjustment expenses attributable to
|
|
|
|
||||
insured events of prior years:
|
|
|
|
||||
General Insurance
|
696.5
|
|
|
758.1
|
|
||
Title Insurance
|
25.3
|
|
|
31.7
|
|
||
RFIG Run-off
|
20.4
|
|
|
45.0
|
|
||
Other
|
1.9
|
|
|
2.5
|
|
||
Sub-total
|
744.2
|
|
|
837.4
|
|
||
Total payments
|
1,030.2
|
|
|
1,144.6
|
|
||
Amount of reserves for unpaid claims and claim adjustment expenses
|
|
|
|
||||
at the end of each period, net of reinsurance losses recoverable:
|
|
|
|
||||
General Insurance
|
6,216.0
|
|
|
5,880.8
|
|
||
Title Insurance
|
544.0
|
|
|
533.5
|
|
||
RFIG Run-off
|
119.9
|
|
|
125.1
|
|
||
Other
|
8.1
|
|
|
10.0
|
|
||
Sub-total
|
6,888.1
|
|
|
6,549.6
|
|
||
Reinsurance losses recoverable
|
3,342.7
|
|
|
3,086.7
|
|
||
Gross reserves at end of period
|
$
|
10,230.9
|
|
|
$
|
9,636.3
|
|
(a)
|
In common with all other insurance coverages, RFIG Run-off mortgage guaranty settled and incurred claim and claim adjustment expenses include only those costs actually or expected to be paid by the Company. Changes in mortgage guaranty aggregate case, IBNR, and loss adjustment expense reserves entering into the determination of incurred claim costs, take into account, among a large number of variables, claim cost reductions for anticipated
|
This space left intentionally blank
|
|
Quarters Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
General Insurance (a):
|
|
|
|
|
|
|
|
||||||||
Net premiums earned
|
$
|
818.0
|
|
|
$
|
850.1
|
|
|
$
|
1,670.8
|
|
|
$
|
1,681.6
|
|
Net investment income and other income
|
119.6
|
|
|
122.8
|
|
|
244.8
|
|
|
241.3
|
|
||||
Total revenues excluding investment gains (losses)
|
$
|
937.6
|
|
|
$
|
972.9
|
|
|
$
|
1,915.6
|
|
|
$
|
1,923.0
|
|
Segment pretax operating income (loss) (b)
|
$
|
85.2
|
|
|
$
|
86.7
|
|
|
$
|
195.3
|
|
|
$
|
195.0
|
|
Income tax expense (credits) on above
|
$
|
15.5
|
|
|
$
|
16.1
|
|
|
$
|
36.4
|
|
|
$
|
36.9
|
|
|
|
|
|
|
|
|
|
||||||||
Title Insurance:
|
|
|
|
|
|
|
|
||||||||
Net premiums earned
|
$
|
520.4
|
|
|
$
|
460.6
|
|
|
$
|
1,028.5
|
|
|
$
|
872.9
|
|
Title, escrow and other fees
|
129.9
|
|
|
130.9
|
|
|
250.0
|
|
|
225.6
|
|
||||
Sub-total
|
650.4
|
|
|
591.6
|
|
|
1,278.6
|
|
|
1,098.5
|
|
||||
Net investment income and other income
|
10.5
|
|
|
10.4
|
|
|
21.5
|
|
|
20.8
|
|
||||
Total revenues excluding investment gains (losses)
|
$
|
661.0
|
|
|
$
|
602.0
|
|
|
$
|
1,300.1
|
|
|
$
|
1,119.4
|
|
Segment pretax operating income (loss) (b)
|
$
|
65.4
|
|
|
$
|
60.2
|
|
|
$
|
108.7
|
|
|
$
|
80.8
|
|
Income tax expense (credits) on above
|
$
|
13.6
|
|
|
$
|
12.6
|
|
|
$
|
22.8
|
|
|
$
|
17.0
|
|
|
|
|
|
|
|
|
|
||||||||
RFIG Run-off Business (a):
|
|
|
|
|
|
|
|
||||||||
Net premiums earned
|
$
|
11.6
|
|
|
$
|
15.3
|
|
|
$
|
24.3
|
|
|
$
|
31.5
|
|
Net investment income and other income
|
3.9
|
|
|
4.3
|
|
|
8.3
|
|
|
8.9
|
|
||||
Total revenues excluding investment gains (losses)
|
$
|
15.6
|
|
|
$
|
19.7
|
|
|
$
|
32.6
|
|
|
$
|
40.5
|
|
Segment pretax operating income (loss)
|
$
|
(4.9
|
)
|
|
$
|
8.2
|
|
|
$
|
3.4
|
|
|
$
|
16.5
|
|
Income tax expense (credits) on above
|
$
|
(1.1
|
)
|
|
$
|
1.6
|
|
|
$
|
.4
|
|
|
$
|
3.2
|
|
|
|
|
|
|
|
|
|
Consolidated Revenues:
|
|
|
|
|
|
|
|
||||||||
Total revenues of above Company segments
|
$
|
1,614.3
|
|
|
$
|
1,594.8
|
|
|
$
|
3,248.5
|
|
|
$
|
3,082.9
|
|
Other sources (c)
|
36.3
|
|
|
44.1
|
|
|
76.1
|
|
|
88.1
|
|
||||
Consolidated investment gains (losses):
|
|
|
|
|
|
|
|
||||||||
Realized from actual transactions and impairments
|
(7.3
|
)
|
|
10.5
|
|
|
11.2
|
|
|
22.9
|
|
||||
Unrealized from changes in fair value of equity securities
|
354.0
|
|
|
26.3
|
|
|
(608.7
|
)
|
|
382.0
|
|
||||
Total realized and unrealized investment gains (losses)
|
346.7
|
|
|
36.9
|
|
|
(597.4
|
)
|
|
405.0
|
|
||||
Consolidation elimination adjustments
|
(26.7
|
)
|
|
(31.1
|
)
|
|
(55.0
|
)
|
|
(62.7
|
)
|
||||
Consolidated revenues
|
$
|
1,970.6
|
|
|
$
|
1,644.7
|
|
|
$
|
2,672.2
|
|
|
$
|
3,513.4
|
|
|
|
|
|
|
|
|
|
||||||||
Consolidated Pretax Income (Loss):
|
|
|
|
|
|
|
|
||||||||
Total segment pretax operating income (loss) of
|
|
|
|
|
|
|
|
||||||||
above Company segments
|
$
|
145.6
|
|
|
$
|
155.2
|
|
|
$
|
307.5
|
|
|
$
|
292.4
|
|
Other sources - net (c)
|
6.7
|
|
|
13.2
|
|
|
19.0
|
|
|
26.4
|
|
||||
Consolidated investment gains (losses):
|
|
|
|
|
|
|
|
||||||||
Realized from actual transactions and impairments
|
(7.3
|
)
|
|
10.5
|
|
|
11.2
|
|
|
22.9
|
|
||||
Unrealized from changes in fair value of equity securities
|
354.0
|
|
|
26.3
|
|
|
(608.7
|
)
|
|
382.0
|
|
||||
Total realized and unrealized investment gains (losses)
|
346.7
|
|
|
36.9
|
|
|
(597.4
|
)
|
|
405.0
|
|
||||
Consolidated income (loss) before income
|
|
|
|
|
|
|
|
||||||||
taxes (credits)
|
$
|
499.1
|
|
|
$
|
205.4
|
|
|
$
|
(270.8
|
)
|
|
$
|
723.9
|
|
|
|
|
|
|
|
|
|
|
Quarters Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Consolidated Income Tax Expense (Credits):
|
|
|
|
|
|
|
|
||||||||
Total income tax expense (credits)
|
|
|
|
|
|
|
|
||||||||
of above Company segments
|
$
|
28.0
|
|
|
$
|
30.4
|
|
|
$
|
59.7
|
|
|
$
|
57.2
|
|
Other sources - net (c)
|
.5
|
|
|
1.6
|
|
|
2.2
|
|
|
3.7
|
|
||||
Income tax expense (credits) on consolidated realized
|
|
|
|
|
|
|
|
||||||||
and unrealized investment gains (losses)
|
72.8
|
|
|
7.7
|
|
|
(125.7
|
)
|
|
85.1
|
|
||||
Consolidated income tax expense (credits)
|
$
|
101.4
|
|
|
$
|
39.9
|
|
|
$
|
(63.7
|
)
|
|
$
|
146.1
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
December 31,
|
||||
|
2020
|
|
2019
|
||||
Consolidated Assets:
|
|
|
|
||||
General Insurance
|
$
|
18,533.8
|
|
|
$
|
17,870.0
|
|
Title Insurance
|
1,684.5
|
|
|
1,695.0
|
|
||
RFIG Run-off Business
|
556.6
|
|
|
615.1
|
|
||
Total assets for the above company segments
|
20,775.0
|
|
|
20,180.2
|
|
||
Other assets (c)
|
1,083.4
|
|
|
1,095.4
|
|
||
Consolidation elimination adjustments
|
(208.1
|
)
|
|
(199.3
|
)
|
||
Consolidated assets
|
$
|
21,650.3
|
|
|
$
|
21,076.3
|
|
|
|
|
|
(b)
|
Segment pretax operating income (loss) is reported net of interest charges on intercompany financing arrangements with Old Republic's holding company parent for the following segments: General - $15.7 and $32.1 compared to $17.9 and $36.4 for the quarters and six months ended June 30, 2020 and 2019, respectively, and Title - $.6 and $1.6 compared to $1.5 and $3.0 for the quarters and six months ended June 30, 2020 and 2019, respectively.
|
(c)
|
Includes amounts for a small life and accident insurance business as well as those of the parent holding company and its internal corporate services subsidiaries.
|
|
June 30, 2020
|
|
December 31, 2019
|
||||||||||||
|
Carrying
Amount
|
|
Fair
Value
|
|
Carrying
Amount
|
|
Fair
Value
|
||||||||
4.875% Senior Notes issued in 2014 and due 2024
|
$
|
397.6
|
|
|
$
|
435.8
|
|
|
$
|
397.3
|
|
|
$
|
439.5
|
|
3.875% Senior Notes issued in 2016 and due 2026
|
546.5
|
|
|
590.7
|
|
|
546.2
|
|
|
580.0
|
|
||||
Other miscellaneous debt
|
23.9
|
|
|
23.9
|
|
|
30.4
|
|
|
30.4
|
|
||||
Total debt
|
$
|
968.1
|
|
|
$
|
1,050.4
|
|
|
$
|
974.0
|
|
|
$
|
1,050.0
|
|
|
|
Carrying
|
|
Fair
|
|
|
||||||||||||||
|
|
Value
|
|
Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
Financial Liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Debt:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
June 30, 2020
|
|
$
|
968.1
|
|
|
$
|
1,050.4
|
|
|
$
|
—
|
|
|
$
|
1,026.5
|
|
|
$
|
23.9
|
|
December 31, 2019
|
|
$
|
974.0
|
|
|
$
|
1,050.0
|
|
|
$
|
—
|
|
|
$
|
1,019.5
|
|
|
$
|
30.4
|
|
OVERVIEW
|
EXECUTIVE SUMMARY
|
|
FINANCIAL HIGHLIGHTS
|
|
|||||||||||||||||||||
|
|
Quarters Ended June 30,
|
|
Six Months Ended June 30,
|
|
||||||||||||||||||
|
SUMMARY INCOME STATEMENTS:
|
2020
|
|
2019
|
|
% Change
|
|
2020
|
|
2019
|
|
% Change
|
|
||||||||||
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Net premiums and fees earned
|
$
|
1,483.1
|
|
|
$
|
1,460.5
|
|
|
1.5
|
%
|
|
$
|
2,979.9
|
|
|
$
|
2,818.6
|
|
|
5.7
|
%
|
|
|
Net investment income
|
108.7
|
|
|
113.0
|
|
|
-3.8
|
|
|
222.9
|
|
|
225.1
|
|
|
-1.0
|
|
|
||||
|
Other income
|
32.0
|
|
|
34.1
|
|
|
-6.0
|
|
|
66.7
|
|
|
64.5
|
|
|
3.5
|
|
|
||||
|
Total operating revenues
|
1,623.9
|
|
|
1,607.7
|
|
|
1.0
|
|
|
3,269.6
|
|
|
3,108.3
|
|
|
5.2
|
|
|
||||
|
Investment gains (losses):
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Realized from actual transactions
|
(7.3
|
)
|
|
12.5
|
|
|
|
|
11.2
|
|
|
24.9
|
|
|
|
|
||||||
|
Realized from impairments
|
—
|
|
|
(2.0
|
)
|
|
|
|
—
|
|
|
(2.0
|
)
|
|
|
|
||||||
|
Unrealized from changes in fair value of equity securities
|
354.0
|
|
|
26.3
|
|
|
|
|
(608.7
|
)
|
|
382.0
|
|
|
|
|
||||||
|
Total investment gains (losses)
|
346.7
|
|
|
36.9
|
|
|
|
|
(597.4
|
)
|
|
405.0
|
|
|
|
|
||||||
|
Total revenues
|
1,970.6
|
|
|
1,644.7
|
|
|
|
|
2,672.2
|
|
|
3,513.4
|
|
|
|
|
||||||
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Claim costs
|
624.1
|
|
|
635.3
|
|
|
-1.8
|
|
|
1,246.7
|
|
|
1,241.4
|
|
|
0.4
|
|
|
||||
|
Sales and general expenses
|
836.9
|
|
|
793.5
|
|
|
5.5
|
|
|
1,673.8
|
|
|
1,526.9
|
|
|
9.6
|
|
|
||||
|
Interest and other charges
|
10.4
|
|
|
10.4
|
|
|
0.5
|
|
|
22.3
|
|
|
21.0
|
|
|
6.2
|
|
|
||||
|
Total operating expenses
|
1,471.5
|
|
|
1,439.2
|
|
|
2.2
|
%
|
|
2,943.0
|
|
|
2,789.4
|
|
|
5.5
|
%
|
|
||||
|
Pretax income (loss)
|
499.1
|
|
|
205.4
|
|
|
|
|
(270.8
|
)
|
|
723.9
|
|
|
|
|
||||||
|
Income taxes (credits)
|
101.4
|
|
|
39.9
|
|
|
|
|
(63.7
|
)
|
|
146.1
|
|
|
|
|
||||||
|
Net income (loss)
|
$
|
397.7
|
|
|
$
|
165.5
|
|
|
|
|
$
|
(207.0
|
)
|
|
$
|
577.7
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
COMMON STOCK STATISTICS:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Components of net income (loss) per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Basic net income (loss) excluding investment gains (losses)
|
$
|
0.42
|
|
|
$
|
0.45
|
|
|
-6.7
|
%
|
|
$
|
0.89
|
|
|
$
|
0.86
|
|
|
3.5
|
%
|
|
|
Net investment gains (losses):
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Realized from actual transactions and impairments
|
(0.02
|
)
|
|
0.03
|
|
|
|
|
0.03
|
|
|
0.06
|
|
|
|
|
||||||
|
Unrealized from changes in fair value of equity securities
|
0.94
|
|
|
0.07
|
|
|
|
|
(1.61
|
)
|
|
1.01
|
|
|
|
|
||||||
|
Basic net income (loss)
|
$
|
1.34
|
|
|
$
|
0.55
|
|
|
|
|
$
|
(0.69
|
)
|
|
$
|
1.93
|
|
|
|
|
||
|
Diluted net income (loss) excluding investment gains (losses)
|
$
|
0.42
|
|
|
$
|
0.45
|
|
|
-6.7
|
%
|
|
$
|
0.89
|
|
|
$
|
0.86
|
|
|
3.5
|
%
|
|
|
Net investment gains (losses):
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Realized from actual transactions and impairments
|
(0.02
|
)
|
|
0.03
|
|
|
|
|
0.03
|
|
|
0.06
|
|
|
|
|
||||||
|
Unrealized from changes in fair value of equity securities
|
0.94
|
|
|
0.07
|
|
|
|
|
(1.61
|
)
|
|
1.00
|
|
|
|
|
||||||
|
Diluted net income (loss)
|
$
|
1.34
|
|
|
$
|
0.55
|
|
|
|
|
$
|
(0.69
|
)
|
|
$
|
1.92
|
|
|
|
|
||
|
Cash dividends on common stock
|
$
|
0.21
|
|
|
$
|
0.20
|
|
|
|
|
$
|
0.42
|
|
|
$
|
0.40
|
|
|
|
|
||
|
Book value per share
|
|
|
|
|
|
|
$
|
19.68
|
|
|
$
|
19.68
|
|
|
—
|
%
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Major Segmented and Consolidated
|
||||||||||||||||||||
|
Elements of Income (Loss)
|
||||||||||||||||||||
|
Quarters Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||||||||
|
2020
|
|
2019
|
|
% Change
|
|
2020
|
|
2019
|
|
% Change
|
||||||||||
A. Net premiums, fees, and other income:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
General insurance
|
$
|
818.0
|
|
|
$
|
850.1
|
|
|
-3.8
|
%
|
|
$
|
1,670.8
|
|
|
$
|
1,681.6
|
|
|
-0.6
|
%
|
Title insurance
|
650.4
|
|
|
591.6
|
|
|
9.9
|
|
|
1,278.6
|
|
|
1,098.5
|
|
|
16.4
|
|
||||
Corporate and other
|
2.9
|
|
|
3.4
|
|
|
-13.7
|
|
|
6.1
|
|
|
6.9
|
|
|
-11.4
|
|
||||
Other income
|
32.0
|
|
|
34.1
|
|
|
-6.0
|
|
|
66.7
|
|
|
64.5
|
|
|
3.5
|
|
||||
Subtotal
|
1,503.5
|
|
|
1,479.3
|
|
|
1.6
|
|
|
3,022.4
|
|
|
2,851.6
|
|
|
6.0
|
|
||||
RFIG run-off business (c)
|
11.6
|
|
|
15.3
|
|
|
-24.1
|
|
|
24.3
|
|
|
31.5
|
|
|
-23.1
|
|
||||
Consolidated
|
$
|
1,515.1
|
|
|
$
|
1,494.7
|
|
|
1.4
|
%
|
|
$
|
3,046.7
|
|
|
$
|
2,883.2
|
|
|
5.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
B. Underwriting and related
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
services income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
General insurance
|
$
|
13.3
|
|
|
$
|
16.0
|
|
|
-17.1
|
%
|
|
$
|
50.8
|
|
|
$
|
54.9
|
|
|
-7.4
|
%
|
Title insurance
|
55.7
|
|
|
51.1
|
|
|
8.8
|
|
|
89.0
|
|
|
62.8
|
|
|
41.8
|
|
||||
Corporate and other
|
(5.9
|
)
|
|
(5.3
|
)
|
|
-11.4
|
|
|
(8.9
|
)
|
|
(10.5
|
)
|
|
15.3
|
|
||||
Subtotal
|
63.0
|
|
|
61.9
|
|
|
1.9
|
|
|
130.9
|
|
|
107.1
|
|
|
22.2
|
|
||||
RFIG run-off business (c)
|
(8.9
|
)
|
|
3.9
|
|
|
N/M
|
|
|
(4.9
|
)
|
|
7.6
|
|
|
-164.0
|
|
||||
Consolidated
|
$
|
54.1
|
|
|
$
|
65.8
|
|
|
-17.8
|
%
|
|
$
|
126.0
|
|
|
$
|
114.8
|
|
|
9.8
|
%
|
C. Consolidated underwriting ratio:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Claim ratio
|
42.1
|
%
|
|
43.5
|
%
|
|
|
|
41.8
|
%
|
|
44.0
|
%
|
|
|
||||||
Expense ratio
|
53.9
|
|
|
51.7
|
|
|
|
|
53.6
|
|
|
51.6
|
|
|
|
||||||
Combined ratio
|
96.0
|
%
|
|
95.2
|
%
|
|
|
|
95.4
|
%
|
|
95.6
|
%
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
D. Net investment income:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
General insurance
|
$
|
87.7
|
|
|
$
|
88.8
|
|
|
-1.2
|
%
|
|
$
|
178.3
|
|
|
$
|
177.1
|
|
|
0.7
|
%
|
Title insurance
|
10.3
|
|
|
10.2
|
|
|
0.8
|
|
|
21.1
|
|
|
20.5
|
|
|
3.0
|
|
||||
Corporate and other
|
6.6
|
|
|
9.5
|
|
|
-29.9
|
|
|
15.0
|
|
|
18.5
|
|
|
-18.9
|
|
||||
Subtotal
|
104.7
|
|
|
108.6
|
|
|
-3.6
|
|
|
214.5
|
|
|
216.2
|
|
|
-0.8
|
|
||||
RFIG run-off business
|
3.9
|
|
|
4.3
|
|
|
-9.9
|
|
|
8.3
|
|
|
8.9
|
|
|
-6.8
|
|
||||
Consolidated
|
$
|
108.7
|
|
|
$
|
113.0
|
|
|
-3.8
|
%
|
|
$
|
222.9
|
|
|
$
|
225.1
|
|
|
-1.0
|
%
|
E. Interest and other charges (credits):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
General insurance
|
$
|
15.8
|
|
|
$
|
18.2
|
|
|
|
|
$
|
33.8
|
|
|
$
|
36.9
|
|
|
|
||
Title insurance
|
0.6
|
|
|
1.2
|
|
|
|
|
1.4
|
|
|
2.5
|
|
|
|
||||||
Corporate and other (a)
|
(6.0
|
)
|
|
(9.0
|
)
|
|
|
|
(12.9
|
)
|
|
(18.4
|
)
|
|
|
||||||
Subtotal
|
10.4
|
|
|
10.3
|
|
|
|
|
22.3
|
|
|
21.0
|
|
|
|
||||||
RFIG run-off business
|
—
|
|
|
—
|
|
|
|
|
—
|
|
|
—
|
|
|
|
||||||
Consolidated
|
$
|
10.4
|
|
|
$
|
10.4
|
|
|
0.5
|
%
|
|
$
|
22.3
|
|
|
$
|
21.0
|
|
|
6.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
F. Segmented and consolidated
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
pretax income (loss) excluding
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
investment gains (losses)(B+D-E):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
General insurance
|
$
|
85.2
|
|
|
$
|
86.7
|
|
|
-1.8
|
%
|
|
$
|
195.3
|
|
|
$
|
195.0
|
|
|
0.1
|
%
|
Title insurance
|
65.4
|
|
|
60.2
|
|
|
8.6
|
|
|
108.7
|
|
|
80.8
|
|
|
34.6
|
|
||||
Corporate and other
|
6.7
|
|
|
13.2
|
|
|
-48.8
|
|
|
19.0
|
|
|
26.4
|
|
|
-28.0
|
|
||||
Subtotal
|
157.4
|
|
|
160.1
|
|
|
-1.7
|
|
|
323.1
|
|
|
302.3
|
|
|
6.9
|
|
||||
RFIG run-off business (c)
|
(4.9
|
)
|
|
8.2
|
|
|
-160.1
|
|
|
3.4
|
|
|
16.5
|
|
|
-79.3
|
|
||||
Consolidated
|
152.4
|
|
|
168.4
|
|
|
-9.5
|
%
|
|
326.6
|
|
|
318.9
|
|
|
2.4
|
%
|
||||
Income taxes (credits) on above (b)
|
28.5
|
|
|
32.1
|
|
|
|
|
61.9
|
|
|
60.9
|
|
|
|
||||||
G. Net income (loss) excluding
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
investment gains (losses)
|
123.8
|
|
|
136.3
|
|
|
-9.2
|
%
|
|
264.6
|
|
|
257.9
|
|
|
2.6
|
%
|
||||
H. Consolidated pretax investment
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
gains (losses):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Realized from actual transactions
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
and impairments
|
(7.3
|
)
|
|
10.5
|
|
|
|
|
11.2
|
|
|
22.9
|
|
|
|
||||||
Unrealized from changes in
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
fair value of equity securities
|
354.0
|
|
|
26.3
|
|
|
|
|
(608.7
|
)
|
|
382.0
|
|
|
|
||||||
Total
|
346.7
|
|
|
36.9
|
|
|
|
|
(597.4
|
)
|
|
405.0
|
|
|
|
||||||
Income taxes (credits) on above
|
72.8
|
|
|
7.7
|
|
|
|
|
(125.7
|
)
|
|
85.1
|
|
|
|
||||||
Net of tax investment gains (losses)
|
273.8
|
|
|
29.1
|
|
|
|
|
(471.7
|
)
|
|
319.8
|
|
|
|
||||||
I. Net income (loss)
|
$
|
397.7
|
|
|
$
|
165.5
|
|
|
|
|
$
|
(207.0
|
)
|
|
$
|
577.7
|
|
|
|
||
J. Consolidated operating cash flow
|
$
|
221.9
|
|
|
$
|
177.2
|
|
|
|
|
$
|
438.3
|
|
|
$
|
313.4
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
General Insurance Summary Operating Results
|
||||||||||||||||||||
|
Quarters Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||||||||
|
2020
|
|
2019
|
|
% Change
|
|
2020
|
|
2019
|
|
% Change
|
||||||||||
Net premiums written
|
$
|
792.7
|
|
|
$
|
873.3
|
|
|
-9.2
|
%
|
|
$
|
1,653.5
|
|
|
$
|
1,716.1
|
|
|
-3.6
|
%
|
Net premiums earned
|
818.0
|
|
|
850.1
|
|
|
-3.8
|
|
|
1,670.8
|
|
|
1,681.6
|
|
|
-0.6
|
|
||||
Net investment income
|
87.7
|
|
|
88.8
|
|
|
-1.2
|
|
|
178.3
|
|
|
177.1
|
|
|
0.7
|
|
||||
Other income
|
31.8
|
|
|
33.9
|
|
|
-6.2
|
|
|
66.4
|
|
|
64.2
|
|
|
3.4
|
|
||||
Operating revenues
|
937.6
|
|
|
972.9
|
|
|
-3.6
|
|
|
1,915.6
|
|
|
1,923.0
|
|
|
-0.4
|
|
||||
Claim costs
|
587.4
|
|
|
606.7
|
|
|
-3.2
|
|
|
1,182.9
|
|
|
1,187.1
|
|
|
-0.4
|
|
||||
Sales and general expenses
|
249.0
|
|
|
261.2
|
|
|
-4.7
|
|
|
503.5
|
|
|
503.8
|
|
|
-0.1
|
|
||||
Interest and other charges
|
15.8
|
|
|
18.2
|
|
|
-12.8
|
|
|
33.8
|
|
|
36.9
|
|
|
-8.3
|
|
||||
Operating expenses
|
852.4
|
|
|
886.2
|
|
|
-3.8
|
|
|
1,720.3
|
|
|
1,727.9
|
|
|
-0.4
|
|
||||
Segment pretax operating income (loss)
|
$
|
85.2
|
|
|
$
|
86.7
|
|
|
-1.8
|
%
|
|
$
|
195.3
|
|
|
$
|
195.0
|
|
|
0.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Claim ratio
|
71.8
|
%
|
|
71.4
|
%
|
|
|
|
70.8
|
%
|
|
70.6
|
%
|
|
|
||||||
Expense ratio
|
26.6
|
|
|
26.7
|
|
|
|
|
26.2
|
|
|
26.1
|
|
|
|
||||||
Combined ratio
|
98.4
|
%
|
|
98.1
|
%
|
|
|
|
97.0
|
%
|
|
96.7
|
%
|
|
|
|
|
|
|
|
Effect of Prior Periods'
|
|
|
|
|
|||||
|
|
|
|
|
(Favorable)/
|
|
Claim Ratio Excluding
|
|||||||
|
Reported
|
|
Unfavorable Claim
|
|
Prior Periods' Claim
|
|||||||||
|
Claim Ratio
|
|
Reserves Development
|
|
Reserves Development
|
|||||||||
2015
|
|
74.1
|
%
|
|
|
|
1.5
|
%
|
|
|
|
72.6
|
%
|
|
2016
|
|
73.0
|
|
|
|
|
0.3
|
|
|
|
|
72.7
|
|
|
2017
|
|
71.8
|
|
|
|
|
0.7
|
|
|
|
|
71.1
|
|
|
2018
|
|
72.2
|
|
|
|
|
—
|
|
|
|
|
72.2
|
|
|
2019
|
|
71.8
|
%
|
|
|
|
0.4
|
%
|
|
|
|
71.4
|
%
|
|
2nd Quarter 2019
|
|
71.4
|
%
|
|
|
|
0.5
|
%
|
|
|
|
70.9
|
%
|
|
2nd Quarter 2020
|
|
71.8
|
%
|
|
|
|
0.1
|
%
|
|
|
|
71.7
|
%
|
|
1st Six Months 2019
|
|
70.6
|
%
|
|
|
|
(0.4
|
)%
|
|
|
|
71.0
|
%
|
|
1st Six Months 2020
|
|
70.8
|
%
|
|
|
|
(0.3
|
)%
|
|
|
|
71.1
|
%
|
|
|
Title Insurance Summary Operating Results
|
||||||||||||||||||||
|
|||||||||||||||||||||
|
Quarters Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||||||||
|
2020
|
|
2019
|
|
% Change
|
|
2020
|
|
2019
|
|
% Change
|
||||||||||
Net premiums and fees earned
|
$
|
650.4
|
|
|
$
|
591.6
|
|
|
9.9
|
%
|
|
$
|
1,278.6
|
|
|
$
|
1,098.5
|
|
|
16.4
|
%
|
Net investment income
|
10.3
|
|
|
10.2
|
|
|
0.8
|
|
|
21.1
|
|
|
20.5
|
|
|
3.0
|
|
||||
Other income
|
0.2
|
|
|
0.1
|
|
|
22.4
|
|
|
0.3
|
|
|
0.3
|
|
|
19.9
|
|
||||
Operating revenues
|
661.0
|
|
|
602.0
|
|
|
9.8
|
|
|
1,300.1
|
|
|
1,119.4
|
|
|
16.2
|
|
||||
Claim costs
|
17.7
|
|
|
18.1
|
|
|
-2.0
|
|
|
39.3
|
|
|
32.5
|
|
|
20.6
|
|
||||
Sales and general expenses
|
577.2
|
|
|
522.4
|
|
|
10.5
|
|
|
1,150.6
|
|
|
1,003.4
|
|
|
14.7
|
|
||||
Interest and other charges
|
0.6
|
|
|
1.2
|
|
|
-49.6
|
|
|
1.4
|
|
|
2.5
|
|
|
-42.5
|
|
||||
Operating expenses
|
595.5
|
|
|
541.8
|
|
|
9.9
|
|
|
1,191.4
|
|
|
1,038.5
|
|
|
14.7
|
|
||||
Segment pretax operating income (loss)
|
$
|
65.4
|
|
|
$
|
60.2
|
|
|
8.6
|
%
|
|
$
|
108.7
|
|
|
$
|
80.8
|
|
|
34.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Claim ratio
|
2.7
|
%
|
|
3.1
|
%
|
|
|
|
3.1
|
%
|
|
3.0
|
%
|
|
|
||||||
Expense ratio
|
88.7
|
|
|
88.3
|
|
|
|
|
90.0
|
|
|
91.3
|
|
|
|
||||||
Combined ratio
|
91.4
|
%
|
|
91.4
|
%
|
|
|
|
93.1
|
%
|
|
94.3
|
%
|
|
|
|
|
|
|
|
Effect of Prior Periods'
|
|
|
|
|
|||||
|
|
|
|
|
(Favorable)/
|
|
Claim Ratio Excluding
|
|||||||
|
Reported
|
|
Unfavorable Claim
|
|
Prior Periods' Claim
|
|||||||||
|
Claim Ratio
|
|
Reserves Development
|
|
Reserves Development
|
|||||||||
2015
|
|
4.9
|
%
|
|
|
|
(0.6
|
)%
|
|
|
|
5.5
|
%
|
|
2016
|
|
3.8
|
|
|
|
|
(1.1
|
)
|
|
|
|
4.9
|
|
|
2017
|
|
0.9
|
|
|
|
|
(3.3
|
)
|
|
|
|
4.2
|
|
|
2018
|
|
2.1
|
|
|
|
|
(2.0
|
)
|
|
|
|
4.1
|
|
|
2019
|
|
2.7
|
%
|
|
|
|
(1.3
|
)%
|
|
|
|
4.0
|
%
|
|
2nd Quarter 2019
|
|
3.1
|
%
|
|
|
|
(0.9
|
)%
|
|
|
|
4.0
|
%
|
|
2nd Quarter 2020
|
|
2.7
|
%
|
|
|
|
(1.2
|
)%
|
|
|
|
3.9
|
%
|
|
1st Six Months 2019
|
|
3.0
|
%
|
|
|
|
(1.0
|
)%
|
|
|
|
4.0
|
%
|
|
1st Six Months 2020
|
|
3.1
|
%
|
|
|
|
(0.8
|
)%
|
|
|
|
3.9
|
%
|
|
|
RFIG Run-off Summary Operating Results (a)
|
||||||||||||||||||||
|
|||||||||||||||||||||
|
Quarters Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||||||||
|
2020
|
|
2019
|
|
% Change
|
|
2020
|
|
2019
|
|
% Change
|
||||||||||
A. Mortgage Insurance (MI)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net premiums earned
|
$
|
11.6
|
|
|
$
|
15.1
|
|
|
-23.1
|
%
|
|
$
|
24.3
|
|
|
$
|
31.2
|
|
|
-22.2
|
%
|
Net investment income
|
3.9
|
|
|
4.3
|
|
|
-8.8
|
|
|
8.3
|
|
|
8.6
|
|
|
-4.0
|
|
||||
Claim costs
|
16.8
|
|
|
6.9
|
|
|
144.3
|
|
|
21.6
|
|
|
16.4
|
|
|
31.4
|
|
||||
MI pretax operating income (loss)
|
$
|
(4.9
|
)
|
|
$
|
8.4
|
|
|
-158.7
|
%
|
|
$
|
3.4
|
|
|
$
|
15.5
|
|
|
-77.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Claim ratio
|
144.5
|
%
|
|
45.5
|
%
|
|
|
|
89.1
|
%
|
|
52.8
|
%
|
|
|
||||||
Expense ratio
|
32.1
|
|
|
27.2
|
|
|
|
|
31.1
|
|
|
25.3
|
|
|
|
||||||
Combined ratio
|
176.6
|
%
|
|
72.7
|
%
|
|
|
|
120.2
|
%
|
|
78.1
|
%
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
B. Consumer Credit Indemnity (CCI) (a)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
CCI pretax operating income (loss)
|
$
|
—
|
|
|
$
|
(0.1
|
)
|
|
|
|
$
|
—
|
|
|
$
|
1.0
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
C. Total MI and CCI Run-off business (a)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Segment pretax operating income (loss)
|
$
|
(4.9
|
)
|
|
$
|
8.2
|
|
|
-160.1
|
%
|
|
$
|
3.4
|
|
|
$
|
16.5
|
|
|
-79.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
RFIG Run-off pretax operating income (loss) includes amounts attributable to the Company's consumer credit indemnity run-off business of $ - for both the second quarter and first six months of 2020 and $(0.1) and $1.0 for the second quarter and first half of 2019, respectively. Results for the CCI coverages are expected to be immaterial in the remaining run-off periods. Effective July 1, 2019, these results have been re-classified to the General Insurance Segment for all future periods.
|
|
|
|
|
|
Effect of Prior Periods'
|
|
|
|
|
|||||
|
|
|
|
|
(Favorable)/
|
|
Claim Ratio Excluding
|
|||||||
|
Reported
|
|
Unfavorable Claim
|
|
Prior Periods' Claim
|
|||||||||
|
Claim Ratio
|
|
Reserves Development
|
|
Reserves Development
|
|||||||||
2015
|
|
56.4
|
%
|
|
|
|
(65.0
|
)%
|
|
|
|
121.4
|
%
|
|
2016
|
|
34.1
|
|
|
|
|
(39.8
|
)
|
|
|
|
73.9
|
|
|
2017
|
|
57.6
|
|
|
|
|
(38.3
|
)
|
|
|
|
95.9
|
|
|
2018
|
|
43.2
|
|
|
|
|
(27.0
|
)
|
|
|
|
70.2
|
|
|
2019
|
|
55.0
|
%
|
|
|
|
(12.5
|
)%
|
|
|
|
67.5
|
%
|
|
2nd Quarter 2019
|
|
45.5
|
%
|
|
|
|
(4.7
|
)%
|
|
|
|
50.2
|
%
|
|
2nd Quarter 2020
|
|
144.5
|
%
|
|
|
|
21.0
|
%
|
|
|
|
123.5
|
%
|
|
1st Six Months 2019
|
|
52.8
|
%
|
|
|
|
(7.4
|
)%
|
|
|
|
60.2
|
%
|
|
1st Six Months 2020
|
|
89.1
|
%
|
|
|
|
2.5
|
%
|
|
|
|
86.6
|
%
|
|
|
|
Corporate and Other Summary Operating Results
|
||||||||||||||||||||
|
|
|||||||||||||||||||||
|
|
Quarters Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||||||||
|
|
2020
|
|
2019
|
|
% Change
|
|
2020
|
|
2019
|
|
% Change
|
||||||||||
Net life and accident premiums earned
|
|
$
|
2.9
|
|
|
$
|
3.4
|
|
|
-13.7
|
%
|
|
$
|
6.1
|
|
|
$
|
6.9
|
|
|
-11.4
|
%
|
Net investment income
|
|
6.6
|
|
|
9.5
|
|
|
-29.9
|
|
|
15.0
|
|
|
18.5
|
|
|
-18.9
|
|
||||
Other operating income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Operating revenues
|
|
9.6
|
|
|
12.9
|
|
|
-25.6
|
|
|
21.1
|
|
|
25.4
|
|
|
-16.8
|
|
||||
Claim costs
|
|
2.0
|
|
|
3.1
|
|
|
-35.5
|
|
|
2.8
|
|
|
5.8
|
|
|
-50.4
|
|
||||
Insurance expenses
|
|
1.0
|
|
|
1.2
|
|
|
-12.5
|
|
|
2.3
|
|
|
2.5
|
|
|
-6.4
|
|
||||
Corporate, interest and other expenses - net
|
|
(0.2
|
)
|
|
(4.6
|
)
|
|
94.9
|
|
|
(3.1
|
)
|
|
(9.4
|
)
|
|
66.1
|
|
||||
Operating expenses
|
|
2.8
|
|
|
(0.2
|
)
|
|
N/M
|
|
|
2.0
|
|
|
(1.0
|
)
|
|
N/M
|
|
||||
Corporate and other pretax operating income (loss)
|
|
$
|
6.7
|
|
|
$
|
13.2
|
|
|
-48.8
|
%
|
|
$
|
19.0
|
|
|
$
|
26.4
|
|
|
-28.0
|
%
|
|
June 30,
|
|
December 31,
|
|
June 30,
|
||||||
|
2020
|
|
2019
|
|
2019
|
||||||
Assets:
|
|
|
|
|
|
||||||
Cash and fixed maturity securities
|
$
|
10,769.0
|
|
|
$
|
10,381.5
|
|
|
$
|
10,070.5
|
|
Equity securities
|
3,560.1
|
|
|
4,030.5
|
|
|
3,894.6
|
|
|||
Other invested assets
|
112.6
|
|
|
115.4
|
|
|
116.3
|
|
|||
Cash and invested assets
|
14,441.8
|
|
|
14,527.4
|
|
|
14,081.6
|
|
|||
Accounts and premiums receivable
|
1,771.9
|
|
|
1,466.7
|
|
|
1,736.1
|
|
|||
Federal income tax recoverable: Current
|
15.8
|
|
|
5.7
|
|
|
—
|
|
|||
Prepaid federal income taxes
|
—
|
|
|
—
|
|
|
129.8
|
|
|||
Reinsurance balances recoverable
|
4,130.7
|
|
|
3,823.9
|
|
|
3,798.2
|
|
|||
Deferred policy acquisition costs
|
319.5
|
|
|
325.4
|
|
|
324.7
|
|
|||
Sundry assets
|
970.3
|
|
|
927.0
|
|
|
917.0
|
|
|||
Total assets
|
$
|
21,650.3
|
|
|
$
|
21,076.3
|
|
|
$
|
20,987.7
|
|
|
|
|
|
|
|
||||||
Liabilities and Shareholders' Equity:
|
|
|
|
|
|
||||||
Policy liabilities
|
$
|
2,607.3
|
|
|
$
|
2,419.2
|
|
|
$
|
2,547.8
|
|
Claim reserves
|
10,230.9
|
|
|
9,929.5
|
|
|
9,636.3
|
|
|||
Federal income tax payable: Current
|
—
|
|
|
—
|
|
|
0.3
|
|
|||
Deferred
|
43.7
|
|
|
112.2
|
|
|
147.0
|
|
|||
Reinsurance balances and funds
|
898.1
|
|
|
616.0
|
|
|
814.3
|
|
|||
Debt
|
968.1
|
|
|
974.0
|
|
|
975.4
|
|
|||
Sundry liabilities
|
1,043.0
|
|
|
1,025.1
|
|
|
972.3
|
|
|||
Total liabilities
|
15,791.3
|
|
|
15,076.1
|
|
|
15,093.7
|
|
|||
Shareholders' equity
|
5,858.9
|
|
|
6,000.1
|
|
|
5,893.9
|
|
|||
Total liabilities and shareholders' equity
|
$
|
21,650.3
|
|
|
$
|
21,076.3
|
|
|
$
|
20,987.7
|
|
|
|
Cash, Invested Assets, and Shareholders' Equity
|
||||||||||||||||||
|
|
|
|
|
|
|
|
% Change
|
||||||||||||
|
|
June 30,
|
|
Dec. 31,
|
|
June 30,
|
|
June '20/
|
|
June '20/
|
||||||||||
|
|
2020
|
|
2019
|
|
2019
|
|
Dec. '19
|
|
June '19
|
||||||||||
Cash and invested assets:
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Fixed maturity securities, cash and other invested assets
|
$
|
10,881.7
|
|
|
$
|
10,496.9
|
|
|
$
|
10,186.9
|
|
|
3.7
|
%
|
|
6.8
|
%
|
||
|
Equity securities
|
3,560.1
|
|
|
4,030.5
|
|
|
3,894.6
|
|
|
-11.7
|
|
|
-8.6
|
|
|||||
|
Total per balance sheet
|
$
|
14,441.8
|
|
|
$
|
14,527.4
|
|
|
$
|
14,081.6
|
|
|
-0.6
|
%
|
|
2.6
|
%
|
||
|
Total at cost for all
|
$
|
13,555.8
|
|
|
$
|
13,327.2
|
|
|
$
|
13,148.2
|
|
|
1.7
|
%
|
|
3.1
|
%
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Composition of shareholders' equity per share:
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Equity before items below
|
$
|
17.76
|
|
|
$
|
17.25
|
|
|
$
|
17.63
|
|
|
3.0
|
%
|
|
0.7
|
%
|
||
|
Unrealized investment gains (losses) and other
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
accumulated comprehensive income (loss)
|
1.92
|
|
|
2.73
|
|
|
2.05
|
|
|
|
|
|
||||||
|
|
|
Total
|
$
|
19.68
|
|
|
$
|
19.98
|
|
|
$
|
19.68
|
|
|
-1.5
|
%
|
|
—
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Segmented composition of
|
|
|
|
|
|
|
|
|
|
|||||||||||
shareholders' equity per share:
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Excluding RFIG run-off segment
|
$
|
18.24
|
|
|
$
|
18.37
|
|
|
$
|
18.07
|
|
|
-0.7
|
%
|
|
0.9
|
%
|
||
|
RFIG run-off segment
|
1.44
|
|
|
1.61
|
|
|
1.61
|
|
|
|
|
|
|||||||
|
|
|
Consolidated total
|
$
|
19.68
|
|
|
$
|
19.98
|
|
|
$
|
19.68
|
|
|
-1.5
|
%
|
|
—
|
%
|
|
Shareholders' Equity Per Share
|
||||||||||||||
|
Quarter
|
|
|
|
|
|
Year
|
||||||||
|
Ended
|
|
Six Months Ended
|
|
Ended
|
||||||||||
|
June 30,
|
|
June 30,
|
|
Dec. 31,
|
||||||||||
|
2020
|
|
2020
|
|
2019
|
|
2019
|
||||||||
Beginning balance
|
$
|
17.29
|
|
|
$
|
19.98
|
|
|
$
|
17.23
|
|
|
$
|
17.23
|
|
Changes in shareholders' equity:
|
|
|
|
|
|
|
|
||||||||
Net income (loss) excluding net investment gains (losses)
|
0.42
|
|
|
0.89
|
|
|
0.86
|
|
|
1.85
|
|
||||
Net of tax realized investment gains (losses)
|
(0.02
|
)
|
|
0.03
|
|
|
0.06
|
|
|
0.10
|
|
||||
Net of tax unrealized investment gains (losses) on
|
|
|
|
|
|
|
|
||||||||
securities carried at fair value
|
2.19
|
|
|
(0.83
|
)
|
|
1.84
|
|
|
2.53
|
|
||||
Total net of tax realized and unrealized
|
|
|
|
|
|
|
|
||||||||
investment gains (losses)
|
2.17
|
|
|
(0.80
|
)
|
|
1.90
|
|
|
2.63
|
|
||||
Cash dividends
|
(0.21
|
)
|
|
(0.42
|
)
|
|
(0.40
|
)
|
|
(1.80
|
)
|
||||
Other
|
0.01
|
|
|
0.03
|
|
|
0.09
|
|
|
0.07
|
|
||||
Net change
|
2.39
|
|
|
(0.30
|
)
|
|
2.45
|
|
|
2.75
|
|
||||
Ending balance
|
$
|
19.68
|
|
|
$
|
19.68
|
|
|
$
|
19.68
|
|
|
$
|
19.98
|
|
Percentage change for the period
|
13.8
|
%
|
|
-1.5
|
%
|
|
14.2
|
%
|
|
16.0
|
%
|
|
Capitalization
|
||||||||||
|
June 30,
|
|
December 31,
|
|
June 30,
|
||||||
|
2020
|
|
2019
|
|
2019
|
||||||
Debt:
|
|
|
|
|
|
||||||
4.875% Senior Notes due 2024
|
$
|
397.6
|
|
|
$
|
397.3
|
|
|
$
|
397.0
|
|
3.875% Senior Notes due 2026
|
546.5
|
|
|
546.2
|
|
|
546.0
|
|
|||
Other miscellaneous debt
|
23.8
|
|
|
30.4
|
|
|
32.3
|
|
|||
Total debt
|
968.1
|
|
|
974.0
|
|
|
975.4
|
|
|||
Common shareholders' equity
|
5,858.9
|
|
|
6,000.1
|
|
|
5,893.9
|
|
|||
Total capitalization
|
$
|
6,827.0
|
|
|
$
|
6,974.2
|
|
|
$
|
6,869.4
|
|
|
|
|
|
|
|
||||||
Capitalization ratios:
|
|
|
|
|
|
||||||
Debt
|
14.2
|
%
|
|
14.0
|
%
|
|
14.2
|
%
|
|||
Common shareholders' equity
|
85.8
|
|
|
86.0
|
|
|
85.8
|
|
|||
Total
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
DETAILED MANAGEMENT ANALYSIS
|
FINANCIAL ACCOUNTING AND REPORTING POLICIES
|
COVID-19 PANDEMIC AND OLD REPUBLIC'S BUSINESS
|
FINANCIAL POSITION
|
(a)
|
Represents 2.2% of the total fixed maturity securities portfolio.
|
Gross Unrealized Losses Stratified by Industry Concentration for Investment Grade Fixed Maturity Securities
|
|||||||||||
|
|
|
|
|
|
|
|
||||
June 30, 2020
|
|
Amortized
Cost
|
|
Gross
Unrealized
Losses
|
|
||||||
Fixed Maturity Securities by Industry Concentration:
|
|
|
|
|
|
||||||
|
Industrial
|
|
$
|
15.0
|
|
|
$
|
.8
|
|
|
|
|
Natural Gas
|
|
23.9
|
|
|
.4
|
|
|
|||
|
Energy
|
|
15.9
|
|
|
.3
|
|
|
|||
|
Consumer Staples
|
|
13.3
|
|
|
.1
|
|
|
|||
|
Other (includes 6 industry groups)
|
|
38.7
|
|
|
.1
|
|
|
|||
|
|
Total
|
|
$
|
107.0
|
|
(b)
|
$
|
2.0
|
|
|
(b)
|
Represents 1.1% of the total fixed maturity securities portfolio.
|
Gross Unrealized Losses Stratified by Industry Concentration for Equity Securities
|
|||||||||||
|
|
|
|
|
|
|
|
||||
June 30, 2020
|
|
Cost
|
|
Gross
Unrealized
Losses
|
|
||||||
Equity Securities by Industry Concentration:
|
|
|
|
|
|
||||||
|
Energy
|
|
$
|
536.8
|
|
|
$
|
172.3
|
|
|
|
|
Utilities
|
|
183.8
|
|
|
19.0
|
|
|
|||
|
Retail
|
|
73.0
|
|
|
17.6
|
|
|
|||
|
Technology
|
|
83.4
|
|
|
13.0
|
|
|
|||
|
Other (includes 9 industry groups)
|
|
564.1
|
|
|
42.8
|
|
|
|||
|
|
Total
|
|
$
|
1,441.3
|
|
(c)
|
$
|
265.0
|
|
(d)
|
(c)
|
Represents 44.7% of the total equity securities portfolio.
|
(d)
|
Represents 8.2% of the cost of the total equity securities portfolio, while gross unrealized gains represent 18.5% of the portfolio.
|
Gross Unrealized Losses Stratified by Maturity Ranges for All Fixed Maturity Securities
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
Amortized Cost
of Fixed Maturity Securities
|
|
Gross Unrealized Losses
|
|
||||||||||||
June 30, 2020
|
|
All
|
|
Non-
Investment
Grade Only
|
|
All
|
|
Non-
Investment
Grade Only
|
|
|||||||||
Maturity Ranges:
|
|
|
|
|
|
|
|
|
|
|||||||||
Due in one year or less
|
|
$
|
23.8
|
|
|
$
|
21.8
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
Due after one year through five years
|
|
165.9
|
|
|
109.2
|
|
|
13.4
|
|
|
12.3
|
|
|
|||||
Due after five years through ten years
|
|
108.9
|
|
|
77.3
|
|
|
6.8
|
|
|
5.9
|
|
|
|||||
Due after ten years
|
|
16.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|||||
|
Total
|
|
$
|
315.5
|
|
|
$
|
208.4
|
|
|
$
|
20.3
|
|
|
$
|
18.3
|
|
|
Gross Unrealized Losses Stratified by Duration and Amount of Unrealized Losses
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
Amount of Gross Unrealized Losses
|
|
||||||||||||||
June 30, 2020
|
|
Less than
20% of
Cost
|
|
20% to
50%
of Cost
|
|
More than
50% of Cost
|
|
Total Gross
Unrealized
Loss
|
|
|||||||||||
Number of Months in Unrealized Loss Position:
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Fixed Maturity Securities:
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
One to six months
|
|
$
|
10.4
|
|
|
$
|
2.5
|
|
|
$
|
—
|
|
|
$
|
12.9
|
|
|
||
|
Seven to twelve months
|
|
3.5
|
|
|
—
|
|
|
—
|
|
|
3.5
|
|
|
||||||
|
More than twelve months
|
|
.1
|
|
|
3.6
|
|
|
—
|
|
|
3.8
|
|
|
||||||
|
|
Total
|
|
$
|
14.1
|
|
|
$
|
6.2
|
|
|
$
|
—
|
|
|
$
|
20.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Number of Issues in Unrealized Loss Position:
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Fixed Maturity Securities:
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
One to six months
|
|
42
|
|
|
2
|
|
|
—
|
|
|
44
|
|
|
||||||
|
Seven to twelve months
|
|
2
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
||||||
|
More than twelve months
|
|
10
|
|
|
2
|
|
|
—
|
|
|
12
|
|
|
||||||
|
|
Total
|
|
54
|
|
|
4
|
|
|
—
|
|
|
58
|
|
(e)
|
(e)
|
At June 30, 2020 the number of issues in an unrealized loss position represent 3.1% of the total number of such fixed maturity issues held by the Company.
|
Age Distribution of Fixed Maturity Securities
|
|||||||||
|
|
|
|
|
|
|
|
||
|
|
|
|
June 30,
|
|
December 31,
|
|
||
|
|
|
|
2020
|
|
2019
|
|
||
Maturity Ranges:
|
|
|
|
|
|||||
|
Due in one year or less
|
11.7
|
%
|
|
10.7
|
%
|
|
||
|
Due after one year through five years
|
57.4
|
|
|
55.6
|
|
|
||
|
Due after five years through ten years
|
30.0
|
|
|
33.4
|
|
|
||
|
Due after ten years
|
.9
|
|
|
.3
|
|
|
||
|
|
Total
|
100.0
|
%
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
||
Average Maturity in Years
|
4.0
|
|
|
4.1
|
|
|
|||
Duration (f)
|
3.6
|
|
|
3.7
|
|
|
(f)
|
Duration is used as a measure of bond price sensitivity to interest rate changes. A duration of 3.6 as of June 30, 2020 implies that a 100 basis point parallel increase in interest rates from current levels would result in a possible decline in the fair value of the long-term fixed maturity investment portfolio of approximately 3.6%.
|
Composition of Unrealized Gains (Losses)
|
|||||||||||
|
|
|
|
|
|
|
|
||||
|
|
|
|
June 30,
|
|
December 31,
|
|
||||
|
|
|
|
2020
|
|
2019
|
|
||||
Available for Sale Fixed Maturity Securities:
|
|
|
|
|
|||||||
|
Amortized cost
|
$
|
9,305.2
|
|
|
$
|
8,537.3
|
|
|
||
|
Estimated fair value
|
9,859.4
|
|
|
8,796.5
|
|
|
||||
|
|
Net unrealized gains (losses)
|
$
|
554.1
|
|
|
$
|
259.1
|
|
|
|
|
|
|
|
|
|
||||||
|
Components of net unrealized gains (losses):
|
|
|
|
|
||||||
|
Gross unrealized gains
|
$
|
574.5
|
|
|
$
|
262.5
|
|
|
||
|
Gross unrealized losses
|
(20.3
|
)
|
|
(3.3
|
)
|
|
||||
|
|
Net unrealized gains (losses)
|
$
|
554.1
|
|
|
$
|
259.1
|
|
|
|
|
|
|
|
|
|
|
|
||||
Equity Securities:
|
|
|
|
|
|||||||
|
Cost
|
$
|
3,227.5
|
|
|
$
|
3,089.1
|
|
|
||
|
Estimated fair value
|
3,560.1
|
|
|
4,030.5
|
|
|
||||
|
|
Net unrealized gains (losses)(i)
|
$
|
332.6
|
|
|
$
|
941.3
|
|
|
|
|
|
|
|
|
|
||||||
|
Components of net unrealized gains (losses):
|
|
|
|
|
||||||
|
Gross unrealized gains
|
$
|
597.6
|
|
|
$
|
968.0
|
|
|
||
|
Gross unrealized losses
|
(265.0
|
)
|
|
(26.6
|
)
|
|
||||
|
|
Net unrealized gains (losses)(g)
|
$
|
332.6
|
|
|
$
|
941.3
|
|
|
(g)
|
Unrealized gains and losses from changes in fair value of equity securities are included in total realized and unrealized investment gains (losses) in the consolidated statements of income.
|
RESULTS OF OPERATIONS
|
Revenues: Premiums & Fees
|
|
Earned Premiums and Fees
|
|||||||||||||||||||||
|
General
|
|
Title
|
|
RFIG Run-off
|
|
Other
|
|
Total
|
|
% Change
from prior
period
|
|||||||||||
Years Ended December 31:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
2017
|
$
|
3,110.8
|
|
|
$
|
2,287.2
|
|
|
$
|
122.9
|
|
|
$
|
18.8
|
|
|
$
|
5,539.7
|
|
|
3.9
|
%
|
2018
|
3,277.1
|
|
|
2,336.1
|
|
|
75.9
|
|
|
14.6
|
|
|
5,703.9
|
|
|
3.0
|
|
|||||
2019
|
3,432.4
|
|
|
2,489.2
|
|
|
59.2
|
|
|
13.4
|
|
|
5,994.2
|
|
|
5.1
|
|
|||||
Six Months Ended June 30:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
2019
|
1,681.6
|
|
|
1,098.5
|
|
|
31.5
|
|
|
6.9
|
|
|
2,818.6
|
|
|
2.5
|
|
|||||
2020
|
1,670.8
|
|
|
1,278.6
|
|
|
24.3
|
|
|
6.1
|
|
|
2,979.9
|
|
|
5.7
|
|
|||||
Quarters Ended June 30:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
2019
|
850.1
|
|
|
591.6
|
|
|
15.3
|
|
|
3.4
|
|
|
1,460.5
|
|
|
2.8
|
|
|||||
2020
|
$
|
818.0
|
|
|
$
|
650.4
|
|
|
$
|
11.6
|
|
|
$
|
2.9
|
|
|
$
|
1,483.1
|
|
|
1.5
|
%
|
|
General Insurance Earned Premiums by Type of Coverage
|
||||||||||||||||
|
Commercial
Automobile
(mostly
trucking)
|
|
Workers'
Compensation
|
|
Financial
Indemnity
|
|
Inland
Marine
and
Property
|
|
General
Liability
|
|
Other
|
||||||
Years Ended December 31:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
2017
|
34.6
|
%
|
|
33.6
|
%
|
|
4.9
|
%
|
|
7.6
|
%
|
|
6.3
|
%
|
|
13.0
|
%
|
2018
|
36.8
|
|
|
31.1
|
|
|
5.3
|
|
|
7.7
|
|
|
6.2
|
|
|
12.9
|
|
2019
|
37.2
|
|
|
29.1
|
|
|
6.4
|
|
|
7.6
|
|
|
6.6
|
|
|
13.1
|
|
Six Months Ended June 30:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
2019
|
37.4
|
|
|
29.6
|
|
|
5.8
|
|
|
7.6
|
|
|
6.7
|
|
|
12.9
|
|
2020
|
37.9
|
|
|
26.4
|
|
|
7.8
|
|
|
7.9
|
|
|
6.4
|
|
|
13.6
|
|
Quarters Ended June 30:
|
|
|
|
|
|
|
|
|
|
|
|
||||||
2019
|
37.1
|
|
|
28.8
|
|
|
5.9
|
|
|
7.6
|
|
|
6.5
|
|
|
14.1
|
|
2020
|
37.8
|
%
|
|
25.7
|
%
|
|
8.1
|
%
|
|
7.9
|
%
|
|
6.0
|
%
|
|
14.5
|
%
|
|
Earned Premiums
|
|
Persistency
|
||||||||||
Premium and Persistency Trends by Type:
|
Direct
|
|
Net
|
|
Traditional
Primary
|
|
Bulk
|
||||||
Years Ended December 31:
|
|
|
|
|
|
|
|
||||||
2017
|
$
|
110.4
|
|
|
$
|
109.8
|
|
|
77.9
|
%
|
|
78.2
|
%
|
2018
|
74.4
|
|
|
74.4
|
|
|
79.7
|
|
|
76.3
|
|
||
2019
|
58.8
|
|
|
58.8
|
|
|
77.1
|
|
|
84.5
|
|
||
Six Months Ended June 30:
|
|
|
|
|
|
|
|
||||||
2019
|
31.2
|
|
|
31.2
|
|
|
81.0
|
|
|
80.0
|
|
||
2020
|
$
|
24.3
|
|
|
$
|
24.3
|
|
|
76.1
|
%
|
|
84.1
|
%
|
Quarters Ended June 30:
|
|
|
|
|
|
|
|
||||||
2019
|
15.1
|
|
|
15.1
|
|
|
|
|
|
||||
2020
|
$
|
11.6
|
|
|
$
|
11.6
|
|
|
|
|
|
Net Risk in Force
|
|||||||||||||||
Net Risk in Force By Type:
|
Traditional
Primary
|
|
Bulk
|
|
Other
|
|
Total
|
||||||||
As of December 31:
|
|
|
|
|
|
|
|
||||||||
2017
|
$
|
3,888.0
|
|
|
$
|
292.4
|
|
|
$
|
12.1
|
|
|
$
|
4,192.6
|
|
2018
|
3,098.3
|
|
|
235.3
|
|
|
11.2
|
|
|
3,345.0
|
|
||||
2019
|
2,388.3
|
|
|
198.2
|
|
|
3.6
|
|
|
2,590.1
|
|
||||
As of June 30:
|
|
|
|
|
|
|
|
||||||||
2019
|
2,792.2
|
|
|
216.2
|
|
|
3.6
|
|
|
3,012.2
|
|
||||
2020
|
$
|
2,126.3
|
|
|
$
|
180.9
|
|
|
$
|
3.6
|
|
|
$
|
2,310.8
|
|
Analysis of Risk in Force
|
|||||||||||
Risk in Force Distribution By FICO Scores:
|
FICO less
than 620
|
|
FICO 620
to 680
|
|
FICO
Greater
than 680
|
|
Unscored/
Unavailable
|
||||
|
|
|
|
|
|
|
|
||||
Traditional Primary:
|
|
|
|
|
|
|
|
||||
As of December 31:
|
|
|
|
|
|
|
|
||||
2017
|
7.5
|
%
|
|
31.5
|
%
|
|
60.2
|
%
|
|
.8
|
%
|
2018
|
7.9
|
|
|
32.2
|
|
|
59.1
|
|
|
.8
|
|
2019
|
8.5
|
|
|
33.8
|
|
|
56.8
|
|
|
.9
|
|
As of June 30:
|
|
|
|
|
|
|
|
||||
2019
|
8.1
|
|
|
32.5
|
|
|
58.7
|
|
|
.7
|
|
2020
|
8.9
|
%
|
|
34.3
|
%
|
|
56.0
|
%
|
|
.8
|
%
|
|
|
|
|
|
|
|
|
||||
Bulk(a):
|
|
|
|
|
|
|
|
||||
As of December 31:
|
|
|
|
|
|
|
|
||||
2017
|
31.8
|
%
|
|
31.7
|
%
|
|
36.3
|
%
|
|
.2
|
%
|
2018
|
33.6
|
|
|
31.5
|
|
|
34.8
|
|
|
.1
|
|
2019
|
34.4
|
|
|
31.2
|
|
|
34.2
|
|
|
.2
|
|
As of June 30:
|
|
|
|
|
|
|
|
||||
2019
|
33.7
|
|
|
31.3
|
|
|
34.8
|
|
|
.2
|
|
2020
|
35.3
|
%
|
|
31.5
|
%
|
|
33.0
|
%
|
|
.2
|
%
|
Risk in Force Distribution By Loan to Value ("LTV") Ratio:
|
LTV
85.0%
and below
|
|
LTV
85.01%
to 90.0%
|
|
LTV
90.01%
to 95.0%
|
|
LTV
Greater
than 95.0%
|
||||
|
|
|
|
|
|
|
|
||||
Traditional Primary(b):
|
|
|
|
|
|
|
|
||||
As of December 31:
|
|
|
|
|
|
|
|
||||
2017
|
4.0
|
%
|
|
30.9
|
%
|
|
30.5
|
%
|
|
34.6
|
%
|
2018
|
4.1
|
|
|
30.7
|
|
|
29.7
|
|
|
35.5
|
|
2019
|
4.1
|
|
|
30.7
|
|
|
28.4
|
|
|
36.8
|
|
As of June 30:
|
|
|
|
|
|
|
|
||||
2019
|
4.2
|
|
|
30.8
|
|
|
29.1
|
|
|
35.9
|
|
2020
|
4.1
|
%
|
|
31.1
|
%
|
|
28.1
|
%
|
|
36.7
|
%
|
|
|
|
|
|
|
|
|
||||
Bulk(a):
|
|
|
|
|
|
|
|
||||
As of December 31:
|
|
|
|
|
|
|
|
||||
2017
|
45.3
|
%
|
|
29.9
|
%
|
|
12.6
|
%
|
|
12.2
|
%
|
2018
|
43.4
|
|
|
30.9
|
|
|
13.1
|
|
|
12.6
|
|
2019
|
42.7
|
|
|
31.4
|
|
|
13.7
|
|
|
12.2
|
|
As of June 30:
|
|
|
|
|
|
|
|
||||
2019
|
43.0
|
|
|
31.1
|
|
|
13.3
|
|
|
12.6
|
|
2020
|
42.9
|
%
|
|
31.8
|
%
|
|
13.6
|
%
|
|
11.7
|
%
|
(a)
|
Bulk pool risk in-force, which represented 6.6% of total bulk risk in-force at June 30, 2020 has been allocated pro-rata based on insurance in-force.
|
(b)
|
The LTV distribution reflects base LTV ratios which are determined prior to the impact of single premiums financed and paid at the time of loan origination.
|
|
|
|
Traditional Primary
|
||||||||||||||||||||||||||
|
TX
|
|
FL
|
|
GA
|
|
IL
|
|
CA
|
|
NC
|
|
PA
|
|
NJ
|
|
VA
|
|
MD
|
||||||||||
As of December 31:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
2017
|
5.9
|
%
|
|
8.1
|
%
|
|
6.0
|
%
|
|
6.1
|
%
|
|
4.8
|
%
|
|
4.4
|
%
|
|
4.3
|
%
|
|
4.6
|
%
|
|
3.7
|
%
|
|
4.2
|
%
|
2018
|
5.5
|
|
|
8.5
|
|
|
6.0
|
|
|
6.4
|
|
|
4.9
|
|
|
4.1
|
|
|
4.3
|
|
|
4.8
|
|
|
3.8
|
|
|
4.6
|
|
2019
|
4.8
|
|
|
9.0
|
|
|
6.1
|
|
|
6.9
|
|
|
5.1
|
|
|
3.9
|
|
|
4.2
|
|
|
5.2
|
|
|
3.9
|
|
|
5.1
|
|
As of June 30:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
2019
|
5.3
|
|
|
8.6
|
|
|
6.0
|
|
|
6.6
|
|
|
5.0
|
|
|
4.0
|
|
|
4.2
|
|
|
4.9
|
|
|
3.9
|
|
|
4.7
|
|
2020
|
4.6
|
%
|
|
9.1
|
%
|
|
6.1
|
%
|
|
7.1
|
%
|
|
5.3
|
%
|
|
3.8
|
%
|
|
4.1
|
%
|
|
5.4
|
%
|
|
3.9
|
%
|
|
5.2
|
%
|
|
|
|
Bulk (a)
|
||||||||||||||||||||||||||
|
TX
|
|
FL
|
|
GA
|
|
IL
|
|
CA
|
|
NC
|
|
PA
|
|
NY
|
|
OH
|
|
MD
|
||||||||||
As of December 31:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
2017
|
5.4
|
%
|
|
8.3
|
%
|
|
5.1
|
%
|
|
4.4
|
%
|
|
12.4
|
%
|
|
2.5
|
%
|
|
3.8
|
%
|
|
7.8
|
%
|
|
4.4
|
%
|
|
2.7
|
%
|
2018
|
5.6
|
|
|
8.2
|
|
|
5.4
|
|
|
4.6
|
|
|
12.4
|
|
|
2.7
|
|
|
4.0
|
|
|
7.1
|
|
|
4.7
|
|
|
2.8
|
|
2019
|
5.5
|
|
|
8.1
|
|
|
5.6
|
|
|
4.7
|
|
|
12.7
|
|
|
2.7
|
|
|
3.8
|
|
|
7.1
|
|
|
4.9
|
|
|
3.0
|
|
As of June 30:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
2019
|
5.5
|
|
|
8.0
|
|
|
5.6
|
|
|
4.5
|
|
|
12.6
|
|
|
2.7
|
|
|
3.8
|
|
|
7.3
|
|
|
4.8
|
|
|
2.9
|
|
2020
|
5.7
|
%
|
|
8.2
|
%
|
|
5.7
|
%
|
|
4.7
|
%
|
|
12.7
|
%
|
|
2.9
|
%
|
|
4.0
|
%
|
|
7.0
|
%
|
|
5.1
|
%
|
|
3.0
|
%
|
Risk in Force Distribution By Level of Documentation:
|
Full
Documentation
|
|
Reduced
Documentation
|
||
Traditional Primary:
|
|
|
|
||
As of December 31:
|
|
|
|
||
2017
|
92.3
|
%
|
|
7.7
|
%
|
2018
|
92.2
|
|
|
7.8
|
|
2019
|
91.8
|
|
|
8.2
|
|
As of June 30:
|
|
|
|
||
2019
|
92.2
|
|
|
7.8
|
|
2020
|
91.6
|
%
|
|
8.4
|
%
|
|
|
|
|
||
Bulk (a):
|
|
|
|
||
As of December 31:
|
|
|
|
||
2017
|
69.4
|
%
|
|
30.6
|
%
|
2018
|
71.8
|
|
|
28.2
|
|
2019
|
72.6
|
|
|
27.4
|
|
As of June 30:
|
|
|
|
||
2019
|
72.1
|
|
|
27.9
|
|
2020
|
72.9
|
%
|
|
27.1
|
%
|
(a)
|
Bulk pool risk in-force, which represented 6.6% of total bulk risk in-force at June 30, 2020, has been allocated pro-rata based on insurance in-force.
|
Risk in Force Distribution By Loan Type:
|
Fixed Rate
& ARMs
with Resets
>=5 Years
|
|
ARMs with
Resets <5
years
|
||
Traditional Primary:
|
|
|
|
||
As of December 31:
|
|
|
|
||
2017
|
97.2
|
%
|
|
2.8
|
%
|
2018
|
97.2
|
|
|
2.8
|
|
2019
|
97.1
|
|
|
2.9
|
|
As of June 30:
|
|
|
|
||
2019
|
97.2
|
|
|
2.8
|
|
2020
|
97.1
|
%
|
|
2.9
|
%
|
|
|
|
|
||
Bulk (a):
|
|
|
|
||
As of December 31:
|
|
|
|
||
2017
|
70.1
|
%
|
|
29.9
|
%
|
2018
|
68.6
|
|
|
31.4
|
|
2019
|
68.0
|
|
|
32.0
|
|
As of June 30:
|
|
|
|
||
2019
|
68.4
|
|
|
31.6
|
|
2020
|
67.4
|
%
|
|
32.6
|
%
|
(a)
|
Bulk pool risk in-force, which represented 6.6% of total bulk risk in-force at June 30, 2020, has been allocated pro-rata based on insurance in-force.
|
Revenues: Net Investment Income
|
|
Invested Assets at Cost
|
|
Fair
Value
Adjust-
ment
|
|
Invested
Assets at
Fair
Value (a)
|
||||||||||||||||||||||
|
General
|
|
Title
|
|
RFIG Run-off
|
|
Corporate
and Other
|
|
Total
|
|
|||||||||||||||||
As of December 31:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
2018
|
$
|
10,162.3
|
|
|
$
|
1,105.6
|
|
|
$
|
583.6
|
|
|
$
|
904.3
|
|
|
$
|
12,755.9
|
|
|
$
|
238.6
|
|
|
$
|
12,994.6
|
|
2019
|
10,577.9
|
|
|
1,172.3
|
|
|
566.3
|
|
|
841.7
|
|
|
13,158.4
|
|
|
1,200.7
|
|
|
14,359.2
|
|
|||||||
As of June 30:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
2019
|
10,295.0
|
|
|
1,100.8
|
|
|
535.3
|
|
|
1,021.2
|
|
|
12,952.4
|
|
|
936.1
|
|
|
13,888.6
|
|
|||||||
2020
|
$
|
10,722.3
|
|
|
$
|
1,153.9
|
|
|
$
|
531.2
|
|
|
$
|
946.1
|
|
|
$
|
13,353.6
|
|
|
$
|
887.2
|
|
|
$
|
14,240.8
|
|
|
Net Investment Income
|
|
Yield at
|
||||||||||||||||||||||
|
General
|
|
Title
|
|
RFIG Run-off
|
|
Corporate
and Other
|
|
Total
|
|
Cost
|
|
Fair
Value
|
||||||||||||
Years Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
December 31:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
2017
|
$
|
318.9
|
|
|
$
|
37.3
|
|
|
$
|
21.7
|
|
|
$
|
31.4
|
|
|
$
|
409.4
|
|
|
3.32
|
%
|
|
3.14
|
%
|
2018
|
341.0
|
|
|
38.8
|
|
|
20.1
|
|
|
31.7
|
|
|
431.8
|
|
|
3.41
|
|
|
3.28
|
|
|||||
2019
|
356.4
|
|
|
41.4
|
|
|
17.6
|
|
|
35.1
|
|
|
450.7
|
|
|
3.48
|
|
|
3.30
|
|
|||||
Six Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
June 30:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
2019
|
177.1
|
|
|
20.5
|
|
|
8.9
|
|
|
18.5
|
|
|
225.1
|
|
|
3.50
|
|
|
3.35
|
|
|||||
2020
|
178.3
|
|
|
21.1
|
|
|
8.3
|
|
|
15.0
|
|
|
222.9
|
|
|
3.36
|
|
|
3.12
|
|
|||||
Quarters Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
June 30:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
2019
|
88.8
|
|
|
10.2
|
|
|
4.3
|
|
|
9.5
|
|
|
113.0
|
|
|
3.51
|
|
|
3.29
|
|
|||||
2020
|
$
|
87.7
|
|
|
$
|
10.3
|
|
|
$
|
3.9
|
|
|
$
|
6.6
|
|
|
$
|
108.7
|
|
|
3.28
|
%
|
|
3.16
|
%
|
Revenues: Net Investment Gains (Losses)
|
|
Realized Investment Gains (Losses) from Actual Transactions
|
|
Impairment Losses
|
|
Unrealized Gains (Losses) from Changes in Fair Value of Equity Securities
|
|
|
||||||||||||||||||||||||
|
Fixed
Maturity
Securities
|
|
Equity
Securities
and Other Investments
|
|
Total
|
|
Fixed
Maturity
Securities
|
|
Equity Securities and Other Investments
|
|
Total
|
|
|
Investment Gains (Losses)
|
|||||||||||||||||
Years Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
December 31:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
2017
|
$
|
16.6
|
|
|
$
|
194.9
|
|
|
$
|
211.6
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
211.6
|
|
2018
|
(4.8
|
)
|
|
63.1
|
|
|
58.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(293.8
|
)
|
|
(235.6
|
)
|
||||||||
2019
|
(1.9
|
)
|
|
40.6
|
|
|
38.6
|
|
|
(2.0
|
)
|
|
—
|
|
|
(2.0
|
)
|
|
599.5
|
|
|
636.1
|
|
||||||||
Six Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
June 30:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
2019
|
(1.4
|
)
|
|
26.4
|
|
|
24.9
|
|
|
(2.0
|
)
|
|
—
|
|
|
(2.0
|
)
|
|
382.0
|
|
|
405.0
|
|
||||||||
2020
|
(8.5
|
)
|
|
19.8
|
|
|
11.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(608.7
|
)
|
|
(597.4
|
)
|
||||||||
Quarters Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
June 30:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
2019
|
(.4
|
)
|
|
13.1
|
|
|
12.5
|
|
|
(2.0
|
)
|
|
—
|
|
|
(2.0
|
)
|
|
26.3
|
|
|
36.9
|
|
||||||||
2020
|
$
|
(8.8
|
)
|
|
$
|
1.5
|
|
|
$
|
(7.3
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
354.0
|
|
|
$
|
346.7
|
|
Expenses: Benefits and Claims
|
|
|
|
|
Claim and Loss Adjustment Expense Reserves
|
||||||||||||||
|
|
|
|
June 30, 2020
|
|
December 31, 2019
|
||||||||||||
|
|
|
|
Gross
|
|
Net
|
|
Gross
|
|
Net
|
||||||||
|
|
|
|
|
|
|
|
|||||||||||
Workers' compensation
|
$
|
4,919.2
|
|
|
$
|
3,101.5
|
|
|
$
|
4,887.6
|
|
|
$
|
3,079.1
|
|
|||
General liability
|
1,257.3
|
|
|
615.2
|
|
|
1,254.7
|
|
|
610.9
|
|
|||||||
Commercial automobile (mostly trucking)
|
2,115.9
|
|
|
1,505.3
|
|
|
1,948.2
|
|
|
1,403.0
|
|
|||||||
Other coverages
|
1,004.1
|
|
|
735.5
|
|
|
918.9
|
|
|
673.5
|
|
|||||||
Unallocated loss adjustment expense reserves
|
258.7
|
|
|
258.3
|
|
|
256.6
|
|
|
254.6
|
|
|||||||
|
|
Total general insurance reserves
|
9,555.3
|
|
|
6,216.0
|
|
|
9,266.2
|
|
|
6,021.3
|
|
|||||
Title
|
544.0
|
|
|
544.0
|
|
|
530.9
|
|
|
530.9
|
|
|||||||
RFIG Run-off
|
119.9
|
|
|
119.9
|
|
|
118.9
|
|
|
118.9
|
|
|||||||
Life and accident
|
11.5
|
|
|
8.1
|
|
|
13.3
|
|
|
8.4
|
|
|||||||
|
|
Total claim and loss adjustment expense reserves
|
$
|
10,230.9
|
|
|
$
|
6,888.1
|
|
|
$
|
9,929.5
|
|
|
$
|
6,679.7
|
|
|
Asbestosis and environmental claim reserves included
|
|
|
|
|
|
|
|
|||||||||||
|
in the above general insurance reserves:
|
|
|
|
|
|
|
|
||||||||||
|
|
Amount
|
$
|
118.4
|
|
|
$
|
77.9
|
|
|
$
|
126.8
|
|
|
$
|
83.3
|
|
|
|
|
% of total general insurance reserves
|
1.2
|
%
|
|
1.3
|
%
|
|
1.4
|
%
|
|
1.4
|
%
|
|
June 30,
|
|
June 30,
|
|
December 31,
|
|
December 31,
|
||||||||
|
2020
|
|
2019
|
|
2019
|
|
2018
|
||||||||
Estimated reduction in beginning reserve
|
$
|
1.6
|
|
|
$
|
3.2
|
|
|
$
|
3.2
|
|
|
$
|
19.0
|
|
Total incurred claims and settlement expenses
|
|
|
|
|
|
|
|
||||||||
reduced (increased) by changes in
|
|
|
|
|
|
|
|
||||||||
estimated rescissions:
|
|
|
|
|
|
|
|
||||||||
Current year
|
.2
|
|
|
.3
|
|
|
.6
|
|
|
.9
|
|
||||
Prior year
|
(.1
|
)
|
|
(.4
|
)
|
|
(.9
|
)
|
|
(12.3
|
)
|
||||
Sub-total
|
.1
|
|
|
(.1
|
)
|
|
(.3
|
)
|
|
(11.4
|
)
|
||||
Estimated rescission reduction in paid claims
|
(.5
|
)
|
|
(.5
|
)
|
|
(1.3
|
)
|
|
(4.4
|
)
|
||||
Estimated reduction in ending reserve
|
$
|
1.2
|
|
|
$
|
2.6
|
|
|
$
|
1.6
|
|
|
$
|
3.2
|
|
|
General
|
|
Title
|
|
RFIG Run-off
|
|
Consolidated
|
||||
Years Ended December 31:
|
|
|
|
|
|
|
|
||||
2017
|
71.8
|
%
|
|
.9
|
%
|
|
160.9
|
%
|
|
44.7
|
%
|
2018
|
72.2
|
|
|
2.1
|
|
|
39.4
|
|
|
43.1
|
|
2019
|
71.8
|
|
|
2.7
|
|
|
53.5
|
|
|
42.9
|
|
Six Months Ended June 30:
|
|
|
|
|
|
|
|
||||
2019
|
70.6
|
|
|
3.0
|
|
|
50.1
|
|
|
44.0
|
|
2020
|
70.8
|
|
|
3.1
|
|
|
89.1
|
|
|
41.8
|
|
Quarters Ended June 30:
|
|
|
|
|
|
|
|
||||
2019
|
71.4
|
|
|
3.1
|
|
|
47.4
|
|
|
43.5
|
|
2020
|
71.8
|
%
|
|
2.7
|
%
|
|
144.5
|
%
|
|
42.1
|
%
|
|
General Insurance Claim Ratios by Type of Coverage
|
|||||||||||||||||||
|
All
Coverages
|
|
Commercial
Automobile
(mostly
trucking)
|
|
Workers'
Compen-sation
|
|
Financial
Indemnity
|
|
Inland
Marine
and
Property
|
|
General
Liability
|
|
Other
|
|||||||
Years Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
December 31:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
2017
|
71.8
|
%
|
|
75.5
|
%
|
|
76.8
|
%
|
|
73.1
|
%
|
|
62.1
|
%
|
|
59.3
|
%
|
|
59.0
|
%
|
2018
|
72.2
|
|
|
70.7
|
|
|
79.3
|
|
|
68.9
|
|
|
73.8
|
|
|
62.8
|
|
|
60.1
|
|
2019
|
71.8
|
|
|
63.2
|
|
|
84.0
|
|
|
77.8
|
|
|
64.0
|
|
|
62.6
|
|
|
61.4
|
|
Six Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
June 30:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
2019
|
70.6
|
|
|
79.3
|
|
|
70.0
|
|
|
57.8
|
|
|
64.5
|
|
|
69.3
|
|
|
57.7
|
|
2020
|
70.8
|
|
|
80.2
|
|
|
68.4
|
|
|
60.2
|
|
|
58.1
|
|
|
64.0
|
|
|
65.7
|
|
Quarters Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
June 30:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
2019
|
71.4
|
|
|
79.6
|
|
|
69.3
|
|
|
61.8
|
|
|
58.9
|
|
|
77.0
|
|
|
57.7
|
|
2020
|
71.8
|
%
|
|
83.4
|
%
|
|
65.7
|
%
|
|
59.6
|
%
|
|
60.7
|
%
|
|
56.7
|
%
|
|
65.1
|
%
|
|
Average Settled Claim Amount (a)
|
|
Reported Delinquency
Ratio at End of Period
|
|
Claims
Rescissions
and
Denials
|
||||||||||||
|
Traditional
Primary
|
|
Bulk
|
|
Traditional
Primary
|
|
Bulk
|
|
|||||||||
Years Ended December 31:
|
|
|
|
|
|
|
|
|
|
||||||||
2017
|
$
|
47,267
|
|
|
$
|
51,446
|
|
|
10.52
|
%
|
|
23.31
|
%
|
|
$
|
13.1
|
|
2018
|
47,055
|
|
|
54,809
|
|
|
9.38
|
|
|
16.94
|
|
|
4.4
|
|
|||
2019
|
49,233
|
|
|
58,708
|
|
|
9.60
|
|
|
15.97
|
|
|
1.3
|
|
|||
Six Months Ended June 30:
|
|
|
|
|
|
|
|
|
|
||||||||
2019
|
48,741
|
|
|
57,595
|
|
|
8.72
|
|
|
15.68
|
|
|
.5
|
|
|||
2020
|
45,022
|
|
|
65,353
|
|
|
13.54
|
%
|
|
17.99
|
%
|
|
.5
|
|
|||
Quarters Ended June 30:
|
|
|
|
|
|
|
|
|
|
||||||||
2019
|
46,815
|
|
|
57,606
|
|
|
|
|
|
|
.1
|
|
|||||
2020
|
$
|
43,997
|
|
|
$
|
47,730
|
|
|
|
|
|
|
$
|
.1
|
|
(a)
|
Amounts are in whole dollars.
|
(b)
|
As determined by risk in force as of June 30, 2020, these 10 states represent approximately 54.5%, 58.9%, and 54.5%, of traditional primary, bulk, and total risk in force, respectively.
|
Expenses: Underwriting Acquisition and Other Expenses
|
|
General
|
|
Title
|
|
RFIG Run-off
|
|
Consolidated
|
||||
Years Ended December 31:
|
|
|
|
|
|
|
|
||||
2017
|
25.5
|
%
|
|
90.0
|
%
|
|
16.6
|
%
|
|
52.0
|
%
|
2018
|
25.0
|
|
|
90.0
|
|
|
21.5
|
|
|
51.6
|
|
2019
|
25.7
|
|
|
89.5
|
|
|
25.0
|
|
|
52.2
|
|
Six Months Ended June 30:
|
|
|
|
|
|
|
|
||||
2019
|
26.1
|
|
|
91.3
|
|
|
25.6
|
|
|
51.6
|
|
2020
|
26.2
|
|
|
90.0
|
|
|
31.1
|
|
|
53.6
|
|
Quarters Ended June 30:
|
|
|
|
|
|
|
|
||||
2019
|
26.7
|
|
|
88.3
|
|
|
27.0
|
|
|
51.7
|
|
2020
|
26.6
|
%
|
|
88.7
|
%
|
|
32.1
|
%
|
|
53.9
|
%
|
Expenses: Total
|
|
General
|
|
Title
|
|
RFIG Run-off
|
|
Consolidated
|
||||
Years Ended December 31:
|
|
|
|
|
|
|
|
||||
2017
|
97.3
|
%
|
|
90.9
|
%
|
|
177.5
|
%
|
|
96.7
|
%
|
2018
|
97.2
|
|
|
92.1
|
|
|
60.9
|
|
|
94.7
|
|
2019
|
97.5
|
|
|
92.2
|
|
|
78.5
|
|
|
95.1
|
|
Six Months Ended June 30:
|
|
|
|
|
|
|
|
||||
2019
|
96.7
|
|
|
94.3
|
|
|
75.7
|
|
|
95.6
|
|
2020
|
97.0
|
|
|
93.1
|
|
|
120.2
|
|
|
95.4
|
|
Quarters Ended June 30:
|
|
|
|
|
|
|
|
||||
2019
|
98.1
|
|
|
91.4
|
|
|
74.4
|
|
|
95.2
|
|
2020
|
98.4
|
%
|
|
91.4
|
%
|
|
176.6
|
%
|
|
96.0
|
%
|
Expenses: Income Taxes
|
End of Management Analysis of Financial Position and Results of Operations
|
OTHER INFORMATION
|
|
|
Item 3 - Quantitative and Qualitative Disclosure About Market Risk
|
OLD REPUBLIC INTERNATIONAL CORPORATION
|
FORM 10-Q
|
PART II - OTHER INFORMATION
|
|
|
|
|
Old Republic International Corporation
|
|
|
|
(Registrant)
|
Date:
|
July 31, 2020
|
|
|
|
|
|
|
|
|
|
/s/ Karl W. Mueller
|
|
|
|
|
|
|
|
Karl W. Mueller
Senior Vice President,
Chief Financial Officer, and
Principal Accounting Officer
|
Exhibit
|
|
|
No.
|
|
Description
|
|
|
|
|
||
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
|
|
|
|
|
|
101.INS
|
|
XBRL Instance Document - The Instance Document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
|
|
|
|
101.SCH
|
|
XBRL Taxonomy Extension Schema
|
|
|
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase
|
|
|
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase
|
|
|
|
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase
|
|
|
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase
|
1 Year Old Republic Chart |
1 Month Old Republic Chart |
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