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Information About Segments of Business
 6 Months Ended
Jun. 30, 2012
Segment Reporting [Abstract]  
Information About Segments of Business
Information About Segments of Business:

The Company is engaged in the single business of insurance underwriting. It conducts its operations through a number of regulated insurance company subsidiaries organized into three major segments, namely its General Insurance Group (property and liability insurance), Title Insurance Group, and the Republic Financial Indemnity Group ("RFIG") run-off business. The results of a small life & health insurance business are included with those of the holding company parent and minor corporate services operations. Each of the Company's segments underwrites and services only those insurance coverages which may be written by it pursuant to state insurance regulations and corporate charter provisions. In late March of this year, Old Republic announced that its General Insurance Group's Consumer Credit Indemnity (CCI) division would be combined with its Mortgage Guaranty (MI) business in a renamed Republic Financial Indemnity Group, Inc. (RFIG) run-off segment. The two operations, which offer similar insurance coverages, have been in run-off operating mode since 2008 (CCI) and August 2011 (MI), and are inactive from new business production standpoints. The combination affects the manner in which segmented results are presented. Accordingly, the segmented results below show the combination of these coverages as a single run-off book of business within the Company's consolidated operations. Prior periods' segmented information for the general insurance and RFIG run-off business segments has therefore been reclassified to provide necessary consistency in period-to-period comparisons. Segment results exclude net realized investment gains or losses and other-than-temporary impairments as these are aggregated in the consolidated totals. The contributions of the segments to consolidated totals are shown in the following table.

 
Quarters Ended
 
Six Months Ended
 
June 30,
 
June 30,
 
2012
 
2011 (c)
 
2012
 
2011 (c)
General Insurance:
 
 
 
 
 
 
 
Net premiums earned
$
564.1

 
$
510.5

 
$
1,113.1

 
$
1,022.0

Net investment income and other income
93.7

 
93.5

 
190.6

 
186.6

Total revenues before realized gains or losses
$
657.8

 
$
604.0

 
$
1,303.7

 
$
1,208.7

Income (loss) before taxes (credits) and
 
 
 
 
 
 
 
realized investment gains or losses (a)
$
59.6

 
$
82.0

 
$
140.1

 
$
170.9

Income tax expense (credits) on above
$
16.9

 
$
25.1

 
$
42.9

 
$
53.5

 
 
 
 
 
 
 
 
Title Insurance:
 
 
 
 
 
 
 
Net premiums earned
$
296.3

 
$
239.8

 
$
557.3

 
$
492.5

Title, escrow and other fees
107.1

 
87.2

 
201.1

 
167.4

Sub-total
403.4

 
327.1

 
758.4

 
659.9

Net investment income and other income
7.6

 
7.5

 
14.9

 
14.7

Total revenues before realized gains or losses
$
411.1

 
$
334.6

 
$
773.4

 
$
674.6

Income (loss) before taxes (credits) and
 
 
 
 
 
 
 
realized investment gains or losses (a)
$
22.5

 
$
5.5

 
$
31.9

 
$
8.1

Income tax expense (credits) on above
$
7.9

 
$
1.6

 
$
11.3

 
$
2.4

 
 
 
 
 
 
 
 
RFIG Run-off Business:
 
 
 
 
 
 
 
Net premiums earned
$
107.8

 
$
120.2

 
$
223.2

 
$
255.1

Net investment income and other income
9.6

 
16.6

 
20.3

 
33.8

Total revenues before realized gains or losses
$
117.5

 
$
136.8

 
$
243.5

 
$
289.0

Income (loss) before taxes (credits) and
 
 
 
 
 
 
 
realized investment gains or losses(a)
$
(160.2
)
 
$
(186.9
)
 
$
(251.5
)
 
$
(308.4
)
Income tax expense (credits) on above
$
(56.0
)
 
$
(65.6
)
 
$
(87.9
)
 
$
(108.4
)
 
 
 
 
 
 
 
 
Consolidated Revenues:
 
 
 
 
 
 
 
Total revenues of above Company segments
$
1,186.5

 
$
1,075.6

 
$
2,320.7

 
$
2,172.4

Other sources (b)
31.7

 
36.7

 
68.9

 
77.2

Consolidated net realized investment gains (losses)
22.0

 
(2.9
)
 
24.9

 
3.5

Consolidation elimination adjustments
(16.3
)
 
(14.4
)
 
(32.5
)
 
(28.6
)
Consolidated revenues
$
1,223.9

 
$
1,094.9

 
$
2,382.0

 
$
2,224.5

 
 
 
 
 
 
 
 
Consolidated Income (Loss) Before Taxes (Credits):
 
 
 
 
 
 
 
Total income (loss) before income taxes (credits)
 
 
 
 
 
 
 
and realized investment gains or losses of
 
 
 
 
 
 
 
above Company segments
$
(78.0
)
 
$
(99.2
)
 
$
(79.4
)
 
$
(129.2
)
Other sources - net (b)
(2.2
)
 
(6.1
)
 
(6.5
)
 
(7.5
)
Consolidated net realized investment gains (losses)
22.0

 
(2.9
)
 
24.9

 
3.5

Consolidated income (loss) before income
 
 
 
 
 
 
 
   taxes (credits)
$
(58.3
)
 
$
(108.3
)
 
$
(60.9
)
 
$
(133.3
)
 
 
 
 
 
 
 
 
Consolidated Income Tax Expense (Credits):
 
 
 
 
 
 
 
Total income tax expense (credits)
 
 
 
 
 
 
 
for above Company segments
$
(31.1
)
 
$
(38.8
)
 
$
(33.6
)
 
$
(52.4
)
Other sources - net (b)
(.8
)
 
(2.2
)
 
(2.4
)
 
(2.8
)
Income tax expense (credits) on consolidated
 
 
 
 
 
 
 
net realized investment gains (losses)
7.7

 
(1.0
)
 
8.7

 
1.2

Consolidated income tax expense (credits)
$
(24.2
)
 
$
(42.0
)
 
$
(27.3
)
 
$
(54.0
)

 
June 30,
 
December 31,
 
2012
 
2011 (c)
Consolidated Assets:
 
 
 
General
$
12,510.2

 
$
12,311.2

Title
993.5

 
956.2

RFIG run-off
2,090.2

 
2,100.7

Other assets (b)
706.3

 
973.4

Consolidation elimination adjustments
(425.1
)
 
(291.2
)
Consolidated
$
15,875.2

 
$
16,050.4

__________

(a)
Income (loss) before taxes (credits) is reported net of interest charges on intercompany financing arrangements with Old Republic's holding company parent for the following segments: General - $6.9 and $13.8 compared to $6.0 and $11.4 for the quarter and six months ended June 30, 2012 and 2011, respectively; Title - $2.0 and $4.0 compared to $1.3 and $2.6 for the quarter and six months ended June 30, 2012 and 2011, respectively, and RFIG run-off - $2.1 and $4.2 compared to $2.0 and $3.8 for the quarter and six months ended June 30, 2012 and 2011, respectively.
(b)
Represents amounts for Old Republic's holding company parent, minor corporate services subsidiaries, and a small life and health insurance operation.
(c) 2011 segment information for General Insurance and RFIG Run-off Business has been reclassified to conform to the 2012 presentation.

General Insurance results for the second quarter and first six months of 2012 reflect pretax charges of approximately $11 and $22, respectively, related to previously deferred acquisition costs ("DAC"). The DAC charge stemmed from new accounting guidance issued by the FASB which became effective as of January 1, 2012.

The Company's flagship mortgage guaranty insurance carrier, Republic Mortgage Insurance Company ("RMIC"), had been operating pursuant to a waiver of minimum state regulatory capital requirements since late 2009. This waiver expired on August 31, 2011. As a consequence, underwriting of new policies ceased and the existing book of business was placed in run-off operating mode. Afterwards, on January 19, 2012, RMIC received a Summary Order ("Order") from the North Carolina Department of Insurance ("NCDOI") placing the Company under supervision. Among other considerations, the Order instructed RMIC to reduce the cash payment on all claims by 50 percent during an initial period not to exceed one year. The remaining 50 percent deferred payment obligation ("DPO") is retained as a claim reserve to be paid at a future date as and when authorized by the NCDOI. As of June 30, 2012, the accumulated DPO claim reserve amounted to $192.3.