Old Republic Reports Second Quarter and First Half Results Supported by Continued Strength of General Insurance Lines

News Release

Printer Friendly Version View printer-friendly version << Back
July 27, 2006 at 9:02 AM EDT

Old Republic Reports Second Quarter and First Half Results Supported by Continued Strength of General Insurance Lines

CHICAGO, July 27 /PRNewswire-FirstCall/ -- Old Republic International Corporation (NYSE: ORI), today announced the following results for the second quarter and first half of 2006:

                
             Financial Highlights
(unaudited; amounts in millions except per share data and percentages; all per
                         share amounts are shown on a
 diluted basis and have been restated retroactively to reflect the 25% stock
                      dividend issued in December 2005)

                        Quarters Ended June 30,   Six Months Ended June 30,
                       2006      2005   Change    2006     2005    Change
    Operating
     Revenues         $940.7    $932.1     .9% $1,876.1  $1,804.4    4.0%
    Net Operating
     Income           $121.3   $163.9*  -26.0%   $233.8   $273.0*  -14.4%
    Net Income        $126.6   $172.3*  -26.5%   $244.0   $286.6*  -14.8%
    Diluted Earnings
     Per Share:
    Net operating
     income:
    Before non-recurring
     tax benefit       $0.52     $0.51    2.0%    $1.01     $0.98    3.1%
    2005 non-recurring
     tax benefit           -      0.20                -      0.20
    Total               0.52      0.71  -26.8%     1.01      1.18  -14.4%
    Net realized
     investment gains   0.02      0.03             0.04       .06
    Net income         $0.54     $0.74  -27.0%    $1.05     $1.24  -15.3%

    * Includes non-recurring income tax and related accumulated interest
      recovery of $45.9 after tax.

Second quarter and first half 2006 earnings were constrained by the accelerated recognition of stock option expenses of $4.1 million ($2.6 million after tax or one cent per diluted share). The additional charge stems from second quarter option grants to employees who meet certain age and service criteria, typically long-term employees who are ages 57 or older. Under the recently issued Statement of Financial Accounting Standards No. 123R, "Share- Based Payment", the values attributed to such options must be expensed immediately.

On the other hand, second quarter and first half 2005 earnings were enhanced by the posting of a non-recurring recovery of income taxes and related accumulated interest of $57.9 million ($45.9 million net of tax, or 20 cents per diluted share). The recovery stemmed from a favorable resolution of the Company's claim for a permanent Federal income tax refund applicable to the three years ended December 31, 1990.

Consolidated Results

The major components of Old Republic's consolidated operating revenues and income were as follows for the periods being reported upon:

                                ($ in millions, except share data)
                         Quarters Ended June 30,   Six Months Ended June 30,
                        2006      2005    Change   2006      2005    Change
    Operating revenues:
     General
      insurance       $531.5    $513.2    3.6%  $1,048.4    $995.8    5.3%
     Mortgage
      guaranty         131.0     130.3      .6     262.3     257.3     1.9
     Title
      insurance        253.8     268.2    -5.3     514.2     506.6     1.5
     Corporate
      and other         24.2      20.3              51.0      44.5
      Total           $940.7    $932.1     .9%  $1,876.1  $1,804.4    4.0%
    Pretax operating
     income (loss):
     General
      insurance       $105.2     $86.4   21.7%    $202.3    $171.3   18.1%
     Mortgage
      guaranty          63.7      67.9    -6.1     123.8     132.5    -6.6
     Title
      insurance         12.1      22.8   -46.8      19.7      35.6   -44.5
     Corporate
      and other        (2.9)     (2.6)              (3.3)     (4.3)
      Sub total        178.2     174.6     2.0     342.6     335.2     2.2
    Realized investment
     gains (losses):
     From sales          8.1      12.9              15.7      26.0
     From impairments      -       (.1)                -      (5.2)
      Net realized
       investment
       gains             8.1      12.8              15.7      20.8
    Consolidated pretax
     income            186.4     187.5     -.6     358.3     356.0      .7
    Income taxes        59.7      15.2   293.1     114.3      69.4    64.6
    Net income        $126.6    $172.3  -26.5%    $244.0    $286.6  -14.8%
    Consolidated
     underwriting
     ratio:
      Benefits and
       claims ratio    44.1%     43.6%             43.7%     43.7%
      Expense ratio     43.8      44.0              45.1      44.3
    Composite ratio    87.9%     87.6%             88.8%     88.0%
    Components of diluted
     net income per share:
     Net operating income:
      Before
       non-recurring
       tax benefit     $0.52     $0.51    2.0%     $1.01     $0.98    3.1%
      2005 non-recurring
       tax benefit         -      0.20                 -      0.20
      Total             0.52      0.71   -26.8      1.01      1.18   -14.4
    Net realized
     investment gains   0.02      0.03              0.04       .06
    Net income         $0.54     $0.74  -27.0%     $1.05     $1.24  -15.3%

Consolidated results are provided in terms of both operating and net income to highlight the effect of realized investment gain or loss recognition on period-to-period comparisons. Recognition of such gains or losses can be highly discretionary and arbitrary due to such factors as the timing of individual securities sales, recognition of losses from write-downs of impaired securities, tax-planning considerations, and changes in investment management judgments relative to the direction of securities markets or the future prospects of individual investees or industry sectors.

General Insurance Results

The General Insurance Group's operating performance continued at high levels for the latest quarter and year-to-date periods. Key indicators of that performance follow:

                                       ($ in millions)
                         Quarters Ended June 30,   Six Months Ended June 30,
                        2006      2005   Change   2006      2005    Change
    Net premiums
     earned           $473.0    $461.3    2.5%   $933.0    $892.4    4.5%
    Net investment
     income             53.7      47.8    12.3    106.6      95.7    11.5
    Pretax operating
     income           $105.2     $86.4   21.7%   $202.3    $171.3   18.1%

    Claims ratio       65.6%     67.5%            65.0%     67.2%
    Expense ratio       23.4      24.0             24.6      24.2
    Composite ratio    89.0%     91.5%            89.6%     91.4%

Earned premium growth of 2.5 percent in this year's second quarter fell short of expectations. For the first half of the year, net premiums earned grew by 4.5 percent. For the first six months of 2006, the Company experienced double digit premium growth among its trucking, and home and extended warranty coverages while nearly all other lines reflected few or no increases. General insurance underwriting margins, however, remained at highly satisfactory levels due to the relative stability of overall claim and productions costs. Net investment income climbed at low double digit rates, benefiting from the combination of a greater invested asset base and rising yields on fixed maturity securities.

Mortgage Guaranty Results

Old Republic's Mortgage Guaranty Group posted moderately lower year-over- year pretax operating earnings in the second quarter and first half of 2006. Key indicators of this segment's performance follow:


                                       ($ in millions)
                         Quarters Ended June 30,  Six Months Ended June 30,
                        2006      2005   Change   2006      2005    Change
    Net premiums
     earned           $110.2    $108.5    1.5%   $219.2    $213.9    2.5%
    Net investment
     income             17.6      17.4     1.2     36.8      35.0     5.2
    Pretax operating
     income            $63.7     $67.9   -6.1%   $123.8    $132.5   -6.6%

    Claims ratio       35.6%     31.5%            37.2%     31.9%
    Expense ratio       22.6      22.0             23.1      22.5
    Composite ratio    58.2%     53.5%            60.3%     54.4%

Mortgage Guaranty premium revenue trends for this year's first half reflected the combination of slightly improved business persistency, lower overall mortgage originations, and a sharp decline in bulk insurance production. The higher composite underwriting ratio for 2006 periods was largely driven by higher claim costs. The rise in claim costs stemmed primarily from higher paid claims as well as expectations of greater claim frequency for the traditional primary business. Lower underwriting profit margins evidenced by this year's higher composite ratio were partially offset by a slight increase in net investment income.

Title Insurance Results

    Old Republic's Title Insurance segment registered significant drops in
profitability for the 2006 periods reported upon.  Key indicators of that
performance follow:

                                          ($ in millions)
                        Quarters Ended June 30,   Six Months Ended June 30,
                        2006     2005   Change    2006      2005    Change
    Net premiums and
     fees earned      $247.2    $261.7   -5.5%   $500.7    $493.4    1.5%
    Net investment
     income              6.5       6.4     1.7     13.3      12.7     4.2
    Pretax operating
     income            $12.1     $22.8  -46.8%    $19.7     $35.6  -44.5%

    Claims ratio        5.9%      5.9%             6.0%      5.9%
    Expense ratio       91.7      87.7             92.6      89.4
    Composite ratio    97.6%     93.6%            98.6%     95.3%

Title premium and fee revenues dropped by 5.5% in this year's second quarter but rose by 1.5% in the first half. For both 2006 periods, profit margins in underwriting/service operations deteriorated significantly. Substantially all of the margin compression occurred in the segment's direct operations, most of which are concentrated in the Western United States. Revenues in that region dropped by 26.6 percent in this year's second quarter and 25.1 percent in the first half. The resulting production levels in that region have been much lower than necessary to support the related operating expense structure. As a consequence of the relatively greater expense load, the segment posted a much higher composite underwriting ratio in this year's second quarter and first half. Slight net investment income growth in this segment was insufficient to offset the substantial reduction in underwriting/ service profitability in 2006 to date.

Corporate and Other Operations

Old Republic's small life and health business, and the net corporate service costs of the parent holding company and internal services subsidiaries produced combined pretax losses of $2.9 million and $3.3 million in the second quarter and first six months of 2006, respectively. Life and health pretax income was affected adversely by greater life insurance claim costs in both periods of 2006. Overall net corporate expenses, however, were moderately lower year-over-year.

Cash, Invested Assets and Shareholders' Equity

The following table shows the changes in consolidated cash and invested assets as well as shareholders' equity, as of the dates shown:

                                   ($ in millions, except share data)
                                                                % Change
                             June     December     June    June '06/ June '06/
                             2006       2005       2005     Dec '05   June '05
    Cash and invested assets:
      Total: As reported,
              with
              securities
              at market    $7,512.9   $7,394.1   $7,216.4    1.6%      4.1%
             With
              securities
              at cost       7,574.6    7,317.3    7,006.8     3.5       8.1
      Per share: As reported,
                  with
                  securities
                  at market   32.66      32.21      31.56     1.4       3.5
                 With
                  securities
                  at cost     32.93      31.87      30.65     3.3       7.4
    Shareholders' equity:
      Total: As reported,
              with
              securities
              at market     4,130.6    4,024.0    4,068.9     2.6       1.5
             With
              securities
              at cost       4,170.4    3,973.9    3,932.6     4.9       6.0
      Per share: As reported,
                  with
                  securities
                  at market   17.96      17.53      17.80     2.5        .9
                 With
                  securities
                  at cost    $18.13     $17.31     $17.20    4.7%      5.4%

The investment portfolio reflects a current allocation of approximately 85 percent in fixed-maturity securities and 8 percent in equities. As in the past, it contains little or no exposure to real estate investments, mortgage- backed securities, derivatives, junk bonds, private placements or mortgage loans. The latest periods' changes in shareholders' equity, as reported, reflects principally additions from earnings in excess of dividend payments, offset by a decline in the value of investment securities carried at market values.

Effective January 1, 2006, the Company reclassified its long-term investments in U.S. Treasury Tax and Loss Bonds held by its mortgage guaranty insurance subsidiaries. The reclassification is intended to conform to more common industry reporting practices and to better align such assets with the corresponding long-term deferred income tax liabilities to which they relate. As a result of this reclassification, invested asset balances have been reduced and the prepaid income tax asset has been increased, while periodic operating cash flow and cash flow from investing activities have been adjusted by correspondingly identical amounts as shown in the following tables. The reclassification has no effect on the financial position or net income of the Company, nor does it call for the receipt or disbursement of any additional cash resources. The following table shows the effect of these adjustments on pertinent financial statement performance indicators as of the balance sheet dates and for the periods shown.


                                              ($ in millions)
                                   June 30,       December 31,   June 30,
                                     2006            2005          2005
    Cash and invested assets:
      Previous classification      $7,981.4        $7,939.9      $7,762.2
      After reclassification        7,512.9         7,394.1       7,216.4
        Change                       (468.4)         (545.7)       (545.7)
    Total other assets:
      Previous classification       3,671.1         3,603.2       3,282.1
      After reclassification        4,139.6         4,149.0       3,827.9
        Change                       $468.4          $545.7        $545.7


                                          ($ in millions)
                              Six Months Ended            Years Ended
                                  June 30,                December 31,
                             2006          2005        2005         2004
    Cash flows from operating
     activities:
      Previous
       classification       $248.2       $371.2       $880.0       $828.3
      After
       reclassification      325.5        324.7        833.6        775.5
        Change                77.3        (46.4)       (46.4)       (52.8)
    Cash flows from investing
     activities:
      Previous
       classification       (195.0)      (324.6)      (589.9)      (734.1)
      After
       reclassification     (272.3)      (278.1)      (543.5)      (681.3)
        Change              $(77.3)       $46.4        $46.4        $52.8


    Conference Call Information

Old Republic has scheduled a conference call at 3:00 p.m. EDT (2:00 p.m. CDT) today to discuss its second quarter 2006 performance and review ongoing trends. To access this call, log on to www.oldrepublic.com 15 minutes before the call to download the necessary software. A replay will be available through this website for 30 days.

About Old Republic

Chicago-based Old Republic International Corporation is an insurance holding company whose subsidiaries market, underwrite and provide risk management services for a wide variety of coverages primarily in the property and liability, mortgage guaranty, and title insurance fields. One of the nation's 50 largest publicly owned insurance organizations, Old Republic has assets of approximately $11.6 billion and shareholders' equity of $4.1 billion or $17.96 per share. Its current stock market valuation is approximately $5.0 billion, or $21.75 per share.

Safe Harbor Statement

Historical data pertaining to the operating results, liquidity, and other performance indicators applicable to an insurance enterprise such as Old Republic are not necessarily indicative of results to be achieved in succeeding years. In addition to the factors cited below, the long-term nature of the insurance business, seasonal and annual patterns in premium production and incidence of claims, changes in yields obtained on invested assets, changes in government policies and free markets affecting inflation rates and general economic conditions, and changes in legal precedents or the application of law affecting the settlement of disputed and other claims can have a bearing on period-to-period comparisons and future operating results.

Some of the statements made in this News Release and Company published reports, as well as oral statements or commentaries made by the Company's management in conference calls following earnings releases, can constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Of necessity, any such forward-looking statements, commentaries, or inferences involve assumptions, uncertainties, and risks that may affect the Company's future performance. With regard to Old Republic's General Insurance segment, its results can be affected, in particular, by the level of market competition, which is typically a function of available capital and expected returns on such capital among competitors, the levels of interest and inflation rates, and periodic changes in claim frequency and severity patterns caused by natural disasters, weather conditions, accidents, illnesses, work-related injuries, and unanticipated external events. Mortgage Guaranty and Title insurance results can be affected by similar factors and, most particularly, by changes in national and regional housing demand and values, the availability and cost of mortgage loans, employment trends, and default rates on mortgage loans. Mortgage guaranty results, in particular, also may be affected by various risk-sharing arrangements with business producers as well as the risk management and pricing policies of government sponsored enterprises. Life and health insurance earnings can be affected by the levels of employment and consumer spending, variations in mortality and health trends, and changes in policy lapsation rates. At the parent holding company level, operating earnings or losses are generally reflective of the amount of debt outstanding and its cost, interest income on temporary holdings of short-term investments, and period-to-period variations in the costs of administering the Company's widespread operations.

Any forward-looking statements or commentaries speak only as of their dates. Old Republic undertakes no obligation to publicly update or revise any and all such comments, whether as a result of new information, future events or otherwise, and, accordingly, they may not be unduly relied upon.

  For the latest news releases and other corporate documents on Old Republic
                          International Corporation
                          Visit: www.oldrepublic.com


                    Old Republic International Corporation
                           FINANCIAL HIGHLIGHTS (*)
                      ($ in Millions, Except Share Data)

                                            Quarters Ended
                                               June 30,
                                          2006          2005        Change
    NET INCOME:
        Total                           $126.6        $172.3        -26.5%
        Per Share:  Basic                $0.55         $0.75        -26.7%
                    Diluted              $0.54         $0.74        -27.0%

    Average number of shares
     outstanding:
                    Basic          230,013,892   228,629,783
                    Diluted        232,240,816   231,190,413

    COMPOSITION OF EARNINGS PER SHARE:
    Basic Earnings:
         Net operating income            $0.53         $0.72        -26.4%
         Realized investment gains        0.02          0.03
             Net income                  $0.55         $0.75        -26.7%
    Diluted Earnings:
         Net operating income            $0.52         $0.71        -26.8%
         Realized investment gains        0.02          0.03
             Net income                  $0.54         $0.74        -27.0%


                                           Six Months Ended
                                               June 30,
                                          2006          2005        Change
    NET INCOME:
        Total                           $244.0        $286.6        -14.8%
        Per Share:  Basic                $1.06         $1.25        -15.2%
                    Diluted              $1.05         $1.24        -15.3%

    Average number of shares
     outstanding:
                    Basic          230,007,372   228,616,296
                    Diluted        232,233,930   231,142,306

    COMPOSITION OF EARNINGS PER SHARE:
    Basic Earnings:
         Net operating income            $1.02         $1.19        -14.3%
         Realized investment gains        0.04          0.06
             Net income                  $1.06         $1.25        -15.2%
    Diluted Earnings:
         Net operating income            $1.01         $1.18        -14.4%
         Realized investment gains        0.04          0.06
             Net income                  $1.05         $1.24        -15.3%


    FINANCIAL POSITION SUMMARY:
                                           June 30,   December 31,   June 30,
                                             2006         2005         2005
    Assets:
      Cash and fixed maturity
       securities                         $6,757.2     $6,675.4     $6,637.5
      Equity securities                      599.3        552.4        416.5
      Other invested assets                  156.4        166.3        162.4
          Cash and invested assets         7,512.9      7,394.1      7,216.4
      Accounts and premiums receivable       796.3        803.4        620.2
      Federal income tax recoverable:
       current                                 5.8            -         44.2
      Reinsurance balances recoverable     2,233.1      2,167.2      2,008.9
      Prepaid federal income taxes           468.4        545.7        545.7
      Sundry assets                          635.7        632.5        608.7
          Total                          $11,652.5    $11,543.2    $11,044.4

    Liabilities and Shareholders' Equity:
      Policy liabilities                  $1,259.4     $1,228.1     $1,094.4
      Benefit and claim reserves           5,134.1      4,939.8      4,706.4
      Federal income tax payable: current        -        129.3            -
                                 deferred    398.9        421.6        563.1
      Debt                                   142.1        142.7        142.7
      Sundry liabilities                     587.2        657.4        468.6
      Shareholders' equity                 4,130.6      4,024.0      4,068.9
          Total                          $11,652.5    $11,543.2    $11,044.4

    Number of shares outstanding       230,026,330  229,575,404  228,641,223


    (*) Per share data reflect adjustments for the 25% stock dividend issued
        in December 2005.


                    Old Republic International Corporation
                         SEGMENTED OPERATING SUMMARY
                               ($ in Millions)

                                     Net       Net
                                    Premiums  Invest-
                                    & Fees     ment     Other    Operating
    Segment                         Earned    Income    Income   Revenues

    Quarter Ended June 30, 2006
         General                    $473.0     $53.7     $4.7      $531.5
         Mortgage                    110.2      17.6      3.1       131.0
         Title                       247.2       6.5      0.1       253.8
         Other                        17.8       4.6      1.6        24.2
           Consolidated             $848.4     $82.6     $9.6      $940.7

    Quarter Ended June 30, 2005
         General                    $461.3     $47.8     $4.0      $513.2
         Mortgage                    108.5      17.4      4.2       130.3
         Title                       261.7       6.4      0.1       268.2
         Other                        16.0       4.1      0.1        20.3
           Consolidated             $847.6     $75.8     $8.5      $932.1


    Six Months Ended June 30, 2006
         General                    $933.0    $106.6     $8.7    $1,048.4
         Mortgage                    219.2      36.8      6.1       262.3
         Title                       500.7      13.3      0.1       514.2
         Other                        39.2       8.4      3.3        51.0
           Consolidated           $1,692.2    $165.3    $18.5    $1,876.1

    Six Months Ended June 30, 2005
         General                    $892.4     $95.7     $7.6      $995.8
         Mortgage                    213.9      35.0      8.3       257.3
         Title                       493.4      12.7      0.3       506.6
         Other                        36.6       7.6      0.2        44.5
           Consolidated           $1,636.5    $151.2    $16.5    $1,804.4


    Fiscal Twelve Months Ended
     June 30, 2006
         General                  $1,845.7    $208.0    $16.5    $2,070.3
         Mortgage                    434.8      71.9     14.2       521.0
         Title                     1,089.1      26.5      0.5     1,116.2
         Other                        72.9      17.6     14.5       105.1
           Consolidated           $3,442.6    $324.2    $45.8    $3,812.7

    Fiscal Twelve Months Ended
     June 30, 2005
         General                  $1,742.6    $189.6    $15.4    $1,947.8
         Mortgage                    418.0      69.4     16.8       504.3
         Title                     1,015.8      25.8      0.6     1,042.3
         Other                        68.7      15.3      0.5        84.6
           Consolidated           $3,245.2    $300.3    $33.5    $3,579.1


                                                              Pretax   Compo-
                                                               Oper-   site
                                          Sales                ating   Under-
                               Benefits  & Other     Total    Income   writing
    Segment                    & Claims  Expenses   Expenses  (Loss)   Ratios

    Quarter Ended June 30, 2006
        General                 $310.2     $115.9     $426.2   $105.2   89.0%
        Mortgage                  39.2       28.0       67.2     63.7   58.2%
        Title                     14.6      227.0      241.7     12.1   97.6%
        Other                      9.8       17.3       27.2     (2.9)   ---
          Consolidated          $373.9     $388.4     $762.4   $178.2   87.9%

    Quarter Ended June 30, 2005
        General                 $311.2     $115.4     $426.7    $86.4   91.5%
        Mortgage                  34.2       28.1       62.3     67.9   53.5%
        Title                     15.3      230.0      245.3     22.8   93.6%
        Other                      8.6       14.3       22.9     (2.6)  ---
          Consolidated          $369.4     $387.9     $757.4   $174.6   87.6%

    Six Months Ended June 30, 2006
        General                 $606.7     $239.3     $846.1   $202.3   89.6%
        Mortgage                  81.5       56.8      138.4    123.8   60.3%
        Title                     30.2      464.2      494.4     19.7   98.6%
        Other                     20.8       33.5       54.3     (3.3)  ---
          Consolidated          $739.4     $794.0   $1,533.4   $342.6   88.8%

    Six Months Ended June 30, 2005
        General                 $599.4     $225.0     $824.4   $171.3   91.4%
        Mortgage                  68.1       56.5      124.7    132.5   54.4%
        Title                     29.1      441.7      470.9     35.6   95.3%
        Other                     19.0       29.8       48.9     (4.3)   ---
          Consolidated          $715.8     $753.2   $1,469.1   $335.2   88.0%

    Fiscal Twelve Months Ended
     June 30, 2006
        General               $1,214.2     $475.0   $1,689.2   $381.0   90.6%
        Mortgage                 173.0      112.9      285.9    235.0   62.5%
        Title                     65.8      977.4    1,043.3     72.8   95.7%
        Other                     35.8       68.3      104.2      0.8    ---
          Consolidated        $1,489.0   $1,633.8   $3,122.8   $689.8   88.9%

    Fiscal Twelve Months Ended
     June 30, 2005
        General               $1,159.5     $441.5   $1,601.1   $346.7   90.8%
        Mortgage                 150.1      113.9      264.1    240.1   59.1%
        Title                     59.6      928.7      988.4     53.9   97.2%
        Other                     36.2       65.7      102.0    (17.3)   ---
          Consolidated        $1,405.6   $1,550.0   $2,955.6   $623.4   89.3%



                      Old Republic International Corporation
                          SEGMENTED OPERATING STATISTICS
                                 ($ in Millions)

                                       Quarters Ended       Six Months Ended
                                           June 30,              June 30,
                                        2006      2005       2006       2005
    General Insurance:
          Benefits and claims ratio     65.6%     67.5%      65.0%      67.2%
          Expense ratio                 23.4%     24.0%      24.6%      24.2%
             Composite ratio            89.0%     91.5%      89.6%      91.4%

          Paid loss ratio               52.7%     51.4%      50.4%      50.5%


    Mortgage Guaranty:
          New insurance written:
             Traditional Primary     $4,460.6  $5,326.8   $8,353.1  $10,032.4
             Bulk                       981.9   2,465.2    4,238.8    5,764.8
             Other                       89.4       3.5      140.7       43.4
             Total                   $5,532.0  $7,795.7  $12,732.8  $15,840.7

          Net risk in force:
             Traditional Primary                         $14,502.0  $15,126.5
             Bulk                                          1,891.8    1,203.9
             Other                                           587.8      576.2
             Total                                       $16,981.7  $16,906.7

          Earned premiums: Direct      $129.8    $128.1     $258.8     $252.7
                           Net         $110.2    $108.5     $219.2     $213.9

          Persistency/Traditional
           Primary                                           68.1%      66.6%

          Delinquency ratio:
             Traditional Primary                             4.08%      3.82%
             Bulk                                            3.24%      3.25%

          Claims ratio                  35.6%     31.5%      37.2%      31.9%
          Expense ratio                 22.6%     22.0%      23.1%      22.5%
           Composite ratio              58.2%     53.5%      60.3%      54.4%

          Paid loss ratio               36.7%     30.6%      34.9%      31.1%


    Title Insurance:
          Direct orders opened         89,153   107,277    176,064    206,302
          Direct orders closed         69,861    87,228    137,970    164,346

          Claims ratio                   5.9%      5.9%       6.0%       5.9%
          Expense ratio                 91.7%     87.7%      92.6%      89.4%
           Composite ratio              97.6%     93.6%      98.6%      95.3%

          Paid loss ratio                6.1%      5.2%       5.1%       5.1%

SOURCE Old Republic International Corporation

CONTACT: A.C. Zucaro, Chairman & CEO of Old Republic International Corporation, +1-312-346-8100; or Leslie Loyet, Analysts/Investors, +1-312-640-6672, lloyet@financialrelationsboard.com, or Tim Grace, Media Inquiries, +1-312-640-6667, tgrace@financialrelationsboard.com, both of Financial Relations Board, for Old Republic International Corporation