Information About Segments of Business

6 Months Ended

Jun. 30, 2016

Segment Reporting [Abstract]

Information About Segments of Business

Information About Segments of Business:

Old Republic is engaged in the single business of insurance underwriting and related services. The Company 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 & accident 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. 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 Old Republic's insurance industry segments to consolidated totals are shown in the following table.

	Quarters Ended					Six Months Ended
	June 30,					June 30,
	2016		2015			2016		2015
General Insurance:
Net premiums earned	$	741.8	$	709.3		$	1,460.8	$	1,412.7
Net investment income and other income	103.9		100.7			209.7		200.4
Total revenues before realized gains or losses	$	845.8	$	810.1		$	1,670.5	$	1,613.1
Income before taxes (credits) and
realized investment gains or losses (a)	$	80.0	$	85.1		$	167.1	$	167.1
Income tax expense (credits) on above	$	24.4	$	27.4		$	51.3	$	53.6
Title Insurance:
Net premiums earned	$	403.1	$	387.4		$	782.5	$	724.3
Title, escrow and other fees	121.3		115.2			216.1		206.7
Sub-total	524.5		502.7			998.7		931.0
Net investment income and other income	9.3		8.3			18.7		16.7
Total revenues before realized gains or losses	$	533.8	$	511.1		$	1,017.5	$	947.8
Income before taxes (credits) and
realized investment gains or losses (a)	$	44.6	$	47.7		$	66.0	$	63.6
Income tax expense (credits) on above	$	15.7	$	16.7		$	23.3	$	22.3
RFIG Run-off Business:
Net premiums earned	$	42.7	$	56.3		$	90.5	$	114.4
Net investment income and other income	5.7		6.3			11.7		12.6
Total revenues before realized gains or losses	$	48.5	$	62.6		$	102.3	$	127.1
Income before taxes (credits) and
realized investment gains or losses	$	14.3	$	(.1	)	$	42.0	$	35.0
Income tax expense (credits) on above	$	4.9	$	(.1	)	$	14.5	$	12.1

Consolidated Revenues:
Total revenues of above Company segments	$	1,428.3		$	1,383.9		$	2,790.3		$	2,688.0
Other sources (b)	28.7			29.5			57.1			57.9
Consolidated net realized investment gains (losses)	6.6			16.6			50.8			35.5
Consolidation elimination adjustments	(21.5		)	(20.1		)	(42.5		)	(41.3		)
Consolidated revenues	$	1,442.2		$	1,410.0		$	2,855.7		$	2,740.2
Consolidated Income Before Taxes (Credits):
Total income before income taxes (credits)
and realized investment gains or losses of
above Company segments	$	139.0		$	132.6		$	275.3		$	265.8
Other sources - net (b)	3.0			2.5			4.9			4.1
Consolidated net realized investment gains (losses)	6.6			16.6			50.8			35.5
Consolidated income before income
taxes (credits)	$	148.8		$	151.8		$	331.1		$	305.6
Consolidated Income Tax Expense (Credits):
Total income tax expense (credits)
for above Company segments	$	45.1		$	44.0		$	89.2		$	88.2
Other sources - net (b)	.2			—			.1			(.5		)
Income tax expense (credits) on consolidated
net realized investment gains (losses)	2.3			5.8			17.8			12.4
Consolidated income tax expense (credits)	$	47.7		$	49.7		$	107.1		$	100.0

	June 30,			December 31,
	2016			2015
Consolidated Assets:
General Insurance	$	15,299.2		$	14,523.0
Title Insurance	1,363.7			1,314.3
RFIG Run-off Business	972.5			978.7
Total assets for the above company segments	17,635.6			16,816.1
Other assets (b)	703.1			760.5
Consolidation elimination adjustments	(347.5		)	(475.0		)
Consolidated assets	$	17,991.2		$	17,101.6

__________

(a) Income 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 - $13.2and $25.3 compared to $10.3and $20.4 for the quarter and six months ended June 30, 2016 and 2015, respectively, and Title - $2.1and $4.2 compared to $2.0 and $4.0 for the quarter and six months ended June 30, 2016 and 2015, respectively.

(b) Represents amounts for Old Republic's holding company parent, minor corporate services subsidiaries, and a small life and accident insurance operation.

The material increases in mortgage guaranty insurance claims and loss payments that began in 2007 gradually depleted Republic Mortgage Insurance Company's ("RMIC") statutory capital base and forced it to discontinue writing new business. The insurance laws of 16 jurisdictions, including RMIC's and its affiliate company, Republic Mortgage Insurance Company of North Carolina's ("RMICNC") domiciliary state of North Carolina, require a mortgage insurer to maintain a minimum amount of statutory capital relative to risk in force (or a similar measure) in order to continue to write new business. The formulations currently allow for a maximum risk-to-capital ratio of 25 to 1, or alternatively stated, a "minimum policyholder position" ("MPP") of one-twenty-fifth of the total risk in force. The failure to maintain the prescribed minimum capital level in a particular state generally requires a mortgage insurer to immediately stop writing new business until it reestablishes the required level of capital or receives a waiver of the requirement from a state's insurance regulatory authority. RMIC breached the minimum capital requirement during the third quarter of 2010. RMIC had previously requested and, subsequently received waivers or forbearance of the minimum policyholder position requirements from the regulatory authorities in substantially all affected states. Following several brief extensions, the waiver from its domiciliary state of North Carolina expired on August 31, 2011, and RMIC and its affiliate company, RMICNC, discontinued writing new business in all states and limited themselves to servicing the run-off of their existing business. They were placed under the North Carolina Department of Insurance's ("NCDOI") administrative supervision the following year and ultimately ordered to defer the payment of 40% of all settled claims as a deferred payment obligation ("DPO").

On July 1, 2014, the NCDOI issued a Final Order approving an Amended and Restated Corrective Plan (the "Amended Plan") submitted jointly on April 16, 2014, by RMIC and RMICNC. Under the Amended Plan, RMIC and RMICNC were authorized to pay 100% of their DPOs accrued as of June 30, 2014 and to settle all subsequent valid claims entirely in cash, without establishing any DPOs. In anticipation of receiving this Final Order, ORI invested $125.0 of cash and securities in RMIC during June 2014. In mid-July 2014, in furtherance of the Final Order, RMIC and RMICNC processed payments of their accumulated DPO balances of approximately $657.0 relating to fully settled claims charged to periods extending between January 19, 2012 and June 30, 2014. Both subsidiaries remain under the supervision of the NCDOI as they continue to operate in run-off mode. The approval of the Amended Plan notwithstanding, the NCDOI retains its regulatory supervisory powers to review and amend the terms of the Amended Plan in the future as circumstances may warrant.