UNITED STATES |
SECURITIES AND EXCHANGE COMMISSION |
Washington, D. C. 20549 |
FORM 10-Q |
[x] | Quarterly report pursuant to section 13 or 15(d) of the Security Exchange Act of 1934 |
for the quarterly period ended: March 31, 2017 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 | No. 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) |
Large accelerated filer x | Accelerated filer o |
Non-accelerated filer o (Do not check if a smaller reporting company) | |
Smaller reporting company o | |
Emerging growth company o |
Class | Shares Outstanding March 31, 2017 | |
Common Stock / $1 par value | 263,586,666 |
OLD REPUBLIC INTERNATIONAL CORPORATION | ||
Report on Form 10-Q / March 31, 2017 | ||
INDEX | ||
PAGE NO. | ||
PART I | FINANCIAL INFORMATION: | |
CONSOLIDATED BALANCE SHEETS | 3 | |
CONSOLIDATED STATEMENTS OF INCOME | 4 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | 5 | |
CONSOLIDATED STATEMENTS OF CASH FLOWS | 6 | |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | 7 - 18 | |
MANAGEMENT ANALYSIS OF FINANCIAL POSITION AND RESULTS OF OPERATIONS | 19 - 46 | |
QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK | 47 | |
CONTROLS AND PROCEDURES | 47 | |
PART II | OTHER INFORMATION: | |
ITEM 1 - LEGAL PROCEEDINGS | 48 | |
ITEM 1A - RISK FACTORS | 48 | |
ITEM 6 - EXHIBITS | 48 | |
SIGNATURE | 49 | |
EXHIBIT INDEX | 50 |
Old Republic International Corporation and Subsidiaries | |||||||
Consolidated Balance Sheets | |||||||
($ in Millions, Except Share Data) | |||||||
(Unaudited) | |||||||
March 31, | December 31, | ||||||
2017 | 2016 | ||||||
Assets | |||||||
Investments: | |||||||
Available for sale: | |||||||
Fixed maturity securities (at fair value) (amortized cost: $7,967.4 and $8,019.6) | $ | 8,135.8 | $ | 8,170.9 | |||
Equity securities (at fair value) (cost: $2,472.9 and $2,404.9) | 3,012.2 | 2,896.1 | |||||
Short-term investments (at fair value which approximates cost) | 654.1 | 681.6 | |||||
Miscellaneous investments | 32.2 | 31.2 | |||||
Total | 11,834.4 | 11,780.0 | |||||
Held to maturity: | |||||||
Fixed maturity securities (at amortized cost) (fair value: $1,040.5 and $947.4) | 1,056.9 | 974.8 | |||||
Other investments | 2.9 | 2.9 | |||||
Total investments | 12,894.4 | 12,757.7 | |||||
Other Assets: | |||||||
Cash | 177.2 | 145.7 | |||||
Securities and indebtedness of related parties | 22.7 | 17.6 | |||||
Accrued investment income | 95.9 | 92.3 | |||||
Accounts and notes receivable | 1,461.2 | 1,390.2 | |||||
Federal income tax recoverable: Current | — | 14.9 | |||||
Prepaid federal income taxes | 114.3 | 82.4 | |||||
Reinsurance balances and funds held | 123.6 | 127.7 | |||||
Reinsurance recoverable: Paid losses | 66.1 | 63.4 | |||||
Policy and claim reserves | 3,214.5 | 3,168.1 | |||||
Deferred policy acquisition costs | 281.8 | 274.0 | |||||
Sundry assets | 453.4 | 457.1 | |||||
Total Other Assets | 6,011.0 | 5,833.8 | |||||
Total Assets | $ | 18,905.4 | $ | 18,591.6 | |||
Liabilities, Preferred Stock, and Common Shareholders' Equity | |||||||
Liabilities: | |||||||
Losses, claims, and settlement expenses | $ | 9,231.3 | $ | 9,206.0 | |||
Unearned premiums | 1,937.1 | 1,842.9 | |||||
Other policyholders' benefits and funds | 193.9 | 192.0 | |||||
Total policy liabilities and accruals | 11,362.4 | 11,241.0 | |||||
Commissions, expenses, fees, and taxes | 470.2 | 474.4 | |||||
Reinsurance balances and funds | 571.3 | 530.3 | |||||
Federal income tax payable: Current | 42.1 | — | |||||
: Deferred | 64.8 | 42.6 | |||||
Debt | 1,525.5 | 1,528.7 | |||||
Sundry liabilities | 272.1 | 302.6 | |||||
Commitments and contingent liabilities | |||||||
Total Liabilities | 14,308.8 | 14,119.9 | |||||
Preferred Stock (1) | — | — | |||||
Common Shareholders' Equity: | |||||||
Common stock (1) | 263.5 | 262.7 | |||||
Additional paid-in capital | 728.4 | 713.8 | |||||
Retained earnings | 3,274.3 | 3,210.6 | |||||
Accumulated other comprehensive income | 367.8 | 323.6 | |||||
Unallocated ESSOP shares (at cost) | (37.5 | ) | (39.2 | ) | |||
Total Common Shareholders' Equity | 4,596.6 | 4,471.6 | |||||
Total Liabilities, Preferred Stock and Common Shareholders' Equity | $ | 18,905.4 | $ | 18,591.6 |
(1) | At March 31, 2017 and December 31, 2016, 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 263,586,666 and 262,719,660 were issued as of March 31, 2017 and December 31, 2016, respectively. At March 31, 2017 and December 31, 2016, 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 | |||||||||||
March 31, | |||||||||||
2017 | 2016 | ||||||||||
Revenues: | |||||||||||
Net premiums earned | $ | 1,201.3 | $ | 1,150.8 | |||||||
Title, escrow, and other fees | 99.7 | 94.8 | |||||||||
Total premiums and fees | 1,301.0 | 1,245.7 | |||||||||
Net investment income | 101.2 | 96.3 | |||||||||
Other income | 27.6 | 27.3 | |||||||||
Total operating revenues | 1,429.9 | 1,369.3 | |||||||||
Realized investment gains (losses): | |||||||||||
From sales | 14.8 | 44.1 | |||||||||
From impairments | — | — | |||||||||
Total realized investment gains (losses) | 14.8 | 44.1 | |||||||||
Total revenues | 1,444.8 | 1,413.5 | |||||||||
Benefits, Claims and Expenses: | |||||||||||
Benefits, claims and settlement expenses | 559.2 | 569.8 | |||||||||
Dividends to policyholders | 4.1 | 4.2 | |||||||||
Underwriting, acquisition, and other expenses | 700.2 | 646.3 | |||||||||
Interest and other charges | 16.4 | 10.7 | |||||||||
Total expenses | 1,280.1 | 1,231.1 | |||||||||
Income before income taxes (credits) | 164.7 | 182.3 | |||||||||
Income Taxes (Credits): | |||||||||||
Current | 51.9 | 57.1 | |||||||||
Deferred | (.3 | ) | 2.2 | ||||||||
Total | 51.6 | 59.3 | |||||||||
Net Income | $ | 113.1 | $ | 122.9 | |||||||
Net Income Per Share: | |||||||||||
Basic | $ | .43 | $ | .48 | |||||||
Diluted | $ | .39 | $ | .43 | |||||||
Average shares outstanding: Basic | 260,784,905 | 258,657,939 | |||||||||
Diluted | 298,239,349 | 295,543,808 | |||||||||
Dividends Per Common Share: | |||||||||||
Cash | $ | .1900 | $ | .1875 |
Old Republic International Corporation and Subsidiaries | |||||||||||
Consolidated Statements of Comprehensive Income (Unaudited) | |||||||||||
($ in Millions) | |||||||||||
Quarters Ended | |||||||||||
March 31, | |||||||||||
2017 | 2016 | ||||||||||
Net Income As Reported | $ | 113.1 | $ | 122.9 | |||||||
Other comprehensive income (loss): | |||||||||||
Unrealized gains (losses) on securities: | |||||||||||
Unrealized gains (losses) on securities before | |||||||||||
reclassifications | 80.0 | 312.5 | |||||||||
Amounts reclassified as realized investment | |||||||||||
gains from sales in the statements of income | (14.8 | ) | (44.1 | ) | |||||||
Pretax unrealized gains (losses) on securities | 65.2 | 268.3 | |||||||||
Deferred income taxes (credits) | 22.7 | 93.8 | |||||||||
Net unrealized gains (losses) on securities, net of tax | 42.5 | 174.4 | |||||||||
Defined benefit pension plans: | |||||||||||
Net pension adjustment before reclassifications | — | .1 | |||||||||
Amounts reclassified as underwriting, acquisition, | |||||||||||
and other expenses in the statements of income | .1 | .1 | |||||||||
Net adjustment related to defined benefit | |||||||||||
pension plans | .1 | .2 | |||||||||
Deferred income taxes (credits) | — | .1 | |||||||||
Net adjustment related to defined benefit pension | |||||||||||
plans, net of tax | — | .1 | |||||||||
Foreign currency translation and other adjustments | 1.5 | 6.3 | |||||||||
Net adjustments | 44.1 | 180.9 | |||||||||
Comprehensive Income (Loss) | $ | 157.2 | $ | 303.9 |
Old Republic International Corporation and Subsidiaries | ||||||||
Consolidated Statements of Cash Flows (Unaudited) | ||||||||
($ in Millions) | ||||||||
Quarters Ended | ||||||||
March 31, | ||||||||
2017 | 2016 | |||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 113.1 | $ | 122.9 | ||||
Adjustments to reconcile net income to | ||||||||
net cash provided by operating activities: | ||||||||
Deferred policy acquisition costs | (7.6 | ) | (4.6 | ) | ||||
Premiums and other receivables | (70.8 | ) | (61.7 | ) | ||||
Unpaid claims and related items | 24.4 | 12.6 | ||||||
Unearned premiums and other policyholders' liabilities | 50.5 | 8.3 | ||||||
Income taxes | 56.5 | 57.2 | ||||||
Prepaid federal income taxes | (31.8 | ) | (19.1 | ) | ||||
Reinsurance balances and funds | 42.3 | 30.0 | ||||||
Realized investment (gains) losses | (14.8 | ) | (44.1 | ) | ||||
Accounts payable, accrued expenses and other | (15.6 | ) | 24.4 | |||||
Total | 146.1 | 125.9 | ||||||
Cash flows from investing activities: | ||||||||
Fixed maturity securities: | ||||||||
Available for sale: | ||||||||
Maturities and early calls | 139.8 | 250.6 | ||||||
Sales | 107.9 | 70.5 | ||||||
Sales of: | ||||||||
Equity securities | 40.3 | 252.7 | ||||||
Other - net | 6.8 | 4.5 | ||||||
Purchases of: | ||||||||
Fixed maturity securities: | ||||||||
Available for sale | (197.6 | ) | (323.1 | ) | ||||
Held to maturity | (87.3 | ) | (157.4 | ) | ||||
Equity securities | (95.9 | ) | (233.9 | ) | ||||
Other - net | (13.6 | ) | (12.0 | ) | ||||
Net decrease (increase) in short-term investments | 27.2 | 19.2 | ||||||
Total | (72.3 | ) | (128.8 | ) | ||||
Cash flows from financing activities: | ||||||||
Issuance of debentures and notes | — | 32.4 | ||||||
Issuance of common shares | 11.1 | 1.8 | ||||||
Redemption of debentures and notes | (3.9 | ) | (3.5 | ) | ||||
Dividends on common shares | (49.3 | ) | (48.3 | ) | ||||
Other - net | — | (2.2 | ) | |||||
Total | (42.2 | ) | (19.8 | ) | ||||
Increase (decrease) in cash | 31.5 | (22.7 | ) | |||||
Cash, beginning of period | 145.7 | 159.8 | ||||||
Cash, end of period | $ | 177.2 | $ | 137.1 | ||||
Supplemental cash flow information: | ||||||||
Cash paid (received) during the period for: Interest | $ | 30.9 | $ | 20.1 | ||||
Income taxes | $ | (5.0 | ) | $ | 1.8 |
OLD REPUBLIC INTERNATIONAL CORPORATION |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) |
($ in Millions, Except Share Data) |
Quarters Ended | |||||||||||
March 31, | |||||||||||
2017 | 2016 | ||||||||||
Numerator: | |||||||||||
Net income | $ | 113.1 | $ | 122.9 | |||||||
Numerator for basic earnings per share - | |||||||||||
income available to common stockholders | 113.1 | 122.9 | |||||||||
Adjustment for interest expense incurred on | |||||||||||
assumed conversion of convertible notes | 3.6 | 3.6 | |||||||||
Numerator for diluted earnings per share - | |||||||||||
income available to common stockholders | |||||||||||
after assumed conversion of convertible notes | $ | 116.7 | $ | 126.6 | |||||||
Denominator: | |||||||||||
Denominator for basic earnings per share - | |||||||||||
weighted-average shares (a) | 260,784,905 | 258,657,939 | |||||||||
Effect of dilutive securities - stock based | |||||||||||
compensation awards | 1,703,231 | 1,230,909 | |||||||||
Effect of dilutive securities - convertible senior notes | 35,751,213 | 35,654,960 | |||||||||
Denominator for diluted earnings per share - | |||||||||||
adjusted weighted-average shares | |||||||||||
and assumed conversion of convertible notes (a) | 298,239,349 | 295,543,808 | |||||||||
Earnings per share: Basic | $ | .43 | $ | .48 | |||||||
Diluted | $ | .39 | $ | .43 | |||||||
Anti-dilutive common stock equivalents | |||||||||||
excluded from earning per share computations: | |||||||||||
Stock based compensation awards | — | 3,765,001 | |||||||||
Convertible senior notes | — | — | |||||||||
Total | — | 3,765,001 |
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||
Fixed Maturity Securities by Type: | |||||||||||||||
March 31, 2017: | |||||||||||||||
Available for sale: | |||||||||||||||
U.S. & Canadian Governments | $ | 1,444.5 | $ | 12.2 | $ | 3.9 | $ | 1,452.8 | |||||||
Corporate | 6,522.8 | 182.3 | 22.2 | 6,682.9 | |||||||||||
$ | 7,967.4 | $ | 194.5 | $ | 26.1 | $ | 8,135.8 | ||||||||
Held to maturity: | |||||||||||||||
Tax-exempt | $ | 1,056.9 | $ | 3.3 | $ | 19.7 | $ | 1,040.5 | |||||||
December 31, 2016: | |||||||||||||||
Available for sale: | |||||||||||||||
U.S. & Canadian Governments | $ | 1,419.7 | $ | 12.6 | $ | 5.5 | $ | 1,426.8 | |||||||
Corporate | 6,599.8 | 175.0 | 30.7 | 6,744.1 | |||||||||||
$ | 8,019.6 | $ | 187.6 | $ | 36.3 | $ | 8,170.9 | ||||||||
Held to maturity: | |||||||||||||||
Tax-exempt | $ | 974.8 | $ | .7 | $ | 28.0 | $ | 947.4 |
Amortized Cost | Estimated Fair Value | ||||||
Fixed Maturity Securities Stratified by Contractual Maturity at March 31, 2017: | |||||||
Available for sale: | |||||||
Due in one year or less | $ | 1,010.3 | $ | 1,017.8 | |||
Due after one year through five years | 3,898.8 | 4,010.9 | |||||
Due after five years through ten years | 2,933.5 | 2,977.1 | |||||
Due after ten years | 124.7 | 129.8 | |||||
$ | 7,967.4 | $ | 8,135.8 | ||||
Held to maturity: | |||||||
Due in one year or less | $ | — | $ | — | |||
Due after one year through five years | 41.8 | 41.2 | |||||
Due after five years through ten years | 993.3 | 977.7 | |||||
Due after ten years | 21.7 | 21.6 | |||||
$ | 1,056.9 | $ | 1,040.5 |
Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||
Equity Securities: | |||||||||||||||
March 31, 2017 | $ | 2,472.9 | $ | 566.8 | $ | 27.6 | $ | 3,012.2 | |||||||
December 31, 2016 | $ | 2,404.9 | $ | 516.2 | $ | 25.0 | $ | 2,896.1 |
12 Months or Less | Greater than 12 Months | Total | |||||||||||||||||||||
Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||
March 31, 2017: | |||||||||||||||||||||||
Fixed Maturity Securities: | |||||||||||||||||||||||
U.S. & Canadian Governments | $ | 702.7 | $ | 3.8 | $ | .9 | $ | — | $ | 703.6 | $ | 3.9 | |||||||||||
Tax-exempt | 719.8 | 19.7 | — | — | 719.8 | 19.7 | |||||||||||||||||
Corporate | 1,078.0 | 14.8 | 197.7 | 7.4 | 1,275.8 | 22.2 | |||||||||||||||||
Subtotal | 2,500.6 | 38.4 | 198.7 | 7.4 | 2,699.4 | 45.9 | |||||||||||||||||
Equity Securities | 288.5 | 8.3 | 123.2 | 19.3 | 411.8 | 27.6 | |||||||||||||||||
Total | $ | 2,789.1 | $ | 46.7 | $ | 322.0 | $ | 26.7 | $ | 3,111.2 | $ | 73.5 | |||||||||||
December 31, 2016: | |||||||||||||||||||||||
Fixed Maturity Securities: | |||||||||||||||||||||||
U.S. & Canadian Governments | $ | 699.0 | $ | 5.5 | $ | 1.3 | $ | — | $ | 700.4 | $ | 5.5 | |||||||||||
Tax-exempt | 814.4 | 28.0 | — | — | 814.4 | 28.0 | |||||||||||||||||
Corporate | 1,250.5 | 20.3 | 246.2 | 10.3 | 1,496.8 | 30.7 | |||||||||||||||||
Subtotal | 2,764.0 | 53.9 | 247.5 | 10.4 | 3,011.6 | 64.3 | |||||||||||||||||
Equity Securities | 82.6 | 12.5 | 122.1 | 12.4 | 204.8 | 25.0 | |||||||||||||||||
Total | $ | 2,846.7 | $ | 66.5 | $ | 369.7 | $ | 22.8 | $ | 3,216.5 | $ | 89.4 |
Fair Value Measurements | ||||||||||||||||
As of March 31, 2017: | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Available for sale: | ||||||||||||||||
Fixed maturity securities: | ||||||||||||||||
U.S. & Canadian Governments | $ | 774.3 | $ | 678.5 | $ | — | $ | 1,452.8 | ||||||||
Corporate | — | 6,672.4 | 10.5 | 6,682.9 | ||||||||||||
Equity securities | 3,011.1 | — | 1.0 | 3,012.2 | ||||||||||||
Short-term investments | 654.1 | — | — | 654.1 | ||||||||||||
Held to maturity: | ||||||||||||||||
Fixed maturity securities: | ||||||||||||||||
Tax-exempt | $ | — | $ | 1,040.5 | $ | — | $ | 1,040.5 | ||||||||
As of December 31, 2016: | ||||||||||||||||
Available for sale: | ||||||||||||||||
Fixed maturity securities: | ||||||||||||||||
U.S. & Canadian Governments | $ | 772.1 | $ | 654.7 | $ | — | $ | 1,426.8 | ||||||||
Corporate | — | 6,733.6 | 10.5 | 6,744.1 | ||||||||||||
Equity securities | 2,895.2 | — | .9 | 2,896.1 | ||||||||||||
Short-term investments | 681.6 | — | — | 681.6 | ||||||||||||
Held to maturity: | ||||||||||||||||
Fixed maturity securities: | ||||||||||||||||
Tax-exempt | $ | — | $ | 947.4 | $ | — | $ | 947.4 |
Quarters Ended | |||||||||||
March 31, | |||||||||||
2017 | 2016 | ||||||||||
Investment income from: | |||||||||||
Fixed maturity securities | $ | 74.2 | $ | 75.1 | |||||||
Equity securities | 26.1 | 20.9 | |||||||||
Short-term investments | .8 | .5 | |||||||||
Other sources | 1.2 | .6 | |||||||||
Gross investment income | 102.4 | 97.2 | |||||||||
Investment expenses (a) | 1.1 | .9 | |||||||||
Net investment income | $ | 101.2 | $ | 96.3 | |||||||
Realized gains (losses) on: | |||||||||||
Fixed maturity securities: | |||||||||||
Gains | $ | 2.8 | $ | 2.4 | |||||||
Losses | (.1 | ) | (.1 | ) | |||||||
Net | 2.6 | 2.2 | |||||||||
Equity securities: | |||||||||||
Gains | 12.1 | 65.6 | |||||||||
Losses | — | (23.8 | ) | ||||||||
Net | 12.1 | 41.8 | |||||||||
Other long-term investments, net | — | — | |||||||||
Total realized gains (losses) | 14.8 | 44.1 | |||||||||
Income taxes (credits) | 5.1 | 15.4 | |||||||||
Net realized gains (losses) | $ | 9.6 | $ | 28.7 | |||||||
Changes in unrealized investment gains (losses) on: | |||||||||||
Fixed maturity securities | $ | 17.0 | $ | 147.6 | |||||||
Less: Deferred income taxes (credits) | 5.9 | 51.6 | |||||||||
11.1 | 96.0 | ||||||||||
Equity securities & other long-term investments | 48.1 | 120.6 | |||||||||
Less: Deferred income taxes (credits) | 16.7 | 42.2 | |||||||||
31.3 | 78.4 | ||||||||||
Net changes in unrealized investment gains (losses) | $ | 42.5 | $ | 174.4 |
(a) | Investment expenses consist of personnel costs and investment management and custody service fees, as well as interest incurred on funds held of $.1 and $- for the quarters ended March 31, 2017 and 2016, respectively. |
Quarters Ended | |||||||
March 31, | |||||||
2017 | 2016 | ||||||
Gross reserves at beginning of period | $ | 9,206.0 | $ | 9,120.2 | |||
Less: reinsurance losses recoverable | 2,766.1 | 2,732.5 | |||||
Net reserves at beginning of period: | |||||||
General Insurance | 5,249.9 | 5,053.1 | |||||
Title Insurance | 602.0 | 580.8 | |||||
RFIG Run-off | 574.0 | 736.7 | |||||
Other | 13.8 | 16.9 | |||||
Sub-total | 6,439.8 | 6,387.6 | |||||
Incurred claims and claim adjustment expenses: | |||||||
Provisions for insured events of the current year: | |||||||
General Insurance | 513.3 | 518.7 | |||||
Title Insurance | 21.3 | 24.4 | |||||
RFIG Run-off (a) | 32.8 | 40.6 | |||||
Other | 7.0 | 6.0 | |||||
Sub-total | 574.6 | 589.7 | |||||
Change in provision for insured events of prior years: | |||||||
General Insurance | 10.1 | 1.9 | |||||
Title Insurance | (10.3 | ) | — | ||||
RFIG Run-off (a) | (13.0 | ) | (20.4 | ) | |||
Other | (1.8 | ) | (.9 | ) | |||
Sub-total | (15.1 | ) | (19.4 | ) | |||
Total incurred claims and claim adjustment expenses (a) | 559.5 | 570.3 | |||||
Payments: | |||||||
Claims and claim adjustment expenses attributable to | |||||||
insured events of the current year: | |||||||
General Insurance | 94.1 | 93.5 | |||||
Title Insurance | .2 | .1 | |||||
RFIG Run-off (b) | .2 | — | |||||
Other | 2.5 | 2.5 | |||||
Sub-total | 97.1 | 96.3 | |||||
Claims and claim adjustment expenses attributable to | |||||||
insured events of prior years: | |||||||
General Insurance | 367.5 | 379.3 | |||||
Title Insurance | 14.7 | 17.4 | |||||
RFIG Run-off (b) | 53.4 | 59.4 | |||||
Other | 2.2 | 4.9 | |||||
Sub-total | 437.8 | 461.1 | |||||
Total payments (b) | 535.0 | 557.5 | |||||
Amount of reserves for unpaid claims and claim adjustment expenses | |||||||
at the end of each period, net of reinsurance losses recoverable: (c) | |||||||
General Insurance | 5,311.7 | 5,100.8 | |||||
Title Insurance | 598.1 | 587.6 | |||||
RFIG Run-off | 540.2 | 697.3 | |||||
Other | 14.2 | 14.5 | |||||
Sub-total | 6,464.3 | 6,400.4 | |||||
Reinsurance losses recoverable | 2,766.9 | 2,667.1 | |||||
Gross reserves at end of period | $ | 9,231.3 | $ | 9,067.5 |
(a) | In common with all other insurance lines, 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 shown below and entering into the determination of incurred claim costs, take into account, among a large number of variables, claim cost reductions for anticipated coverage rescissions and claims denials. |
Quarters Ended | ||||||||||
March 31, | ||||||||||
2017 | 2016 | |||||||||
Net reserve increase(decrease): | ||||||||||
General Insurance | $ | 61.8 | $ | 47.7 | ||||||
Title Insurance | (3.9 | ) | 6.8 | |||||||
RFIG Run-off | (33.7 | ) | (39.3 | ) | ||||||
Other | .3 | (2.3 | ) | |||||||
Total | $ | 24.4 | $ | 12.7 |
(b) | Rescissions reduced the Company's paid losses by an estimated $(3.0) and $(6.4) for the year-to-date periods ended March 31, 2017 and 2016, respectively. |
(c) | Net reserves for claims that have been incurred but are not yet reported ("IBNR") carried in each segment were as follows: |
March 31, | March 31, | December 31, | ||||||||||
2017 | 2016 | 2016 | ||||||||||
General Insurance | $ | 2,515.3 | $ | 2,406.7 | $ | 2,431.2 | ||||||
Title Insurance | 521.5 | 516.5 | 517.5 | |||||||||
RFIG Run-off | 208.6 | 192.1 | 206.3 | |||||||||
Other | 5.0 | 4.8 | 5.4 | |||||||||
Total | $ | 3,250.6 | $ | 3,120.3 | $ | 3,160.5 |
Quarters Ended | |||||||||||
March 31, | |||||||||||
2017 | 2016 | ||||||||||
General Insurance: | |||||||||||
Net premiums earned | $ | 742.8 | $ | 718.9 | |||||||
Net investment income and other income | 106.2 | 105.7 | |||||||||
Total revenues before realized gains or losses | $ | 849.0 | $ | 824.6 | |||||||
Income before taxes (credits) and | |||||||||||
realized investment gains or losses (a) | $ | 93.7 | $ | 87.0 | |||||||
Income tax expense (credits) on above | $ | 28.0 | $ | 26.8 | |||||||
Title Insurance: | |||||||||||
Net premiums earned | $ | 418.3 | $ | 379.3 | |||||||
Title, escrow and other fees | 99.7 | 94.8 | |||||||||
Sub-total | 518.0 | 474.1 | |||||||||
Net investment income and other income | 9.7 | 9.4 | |||||||||
Total revenues before realized gains or losses | $ | 527.8 | $ | 483.6 | |||||||
Income before taxes (credits) and | |||||||||||
realized investment gains or losses (a) | $ | 40.4 | $ | 21.4 | |||||||
Income tax expense (credits) on above | $ | 13.8 | $ | 7.5 | |||||||
RFIG Run-off Business: | |||||||||||
Net premiums earned | $ | 35.5 | $ | 47.8 | |||||||
Net investment income and other income | 5.5 | 5.9 | |||||||||
Total revenues before realized gains or losses | $ | 41.1 | $ | 53.7 | |||||||
Income before taxes (credits) and | |||||||||||
realized investment gains or losses | $ | 14.5 | $ | 27.7 | |||||||
Income tax expense (credits) on above | $ | 5.2 | $ | 9.6 | |||||||
Consolidated Revenues: | |||||||||||
Total revenues of above Company segments | $ | 1,418.0 | $ | 1,362.0 | |||||||
Other sources (b) | 41.9 | 28.3 | |||||||||
Consolidated net realized investment gains (losses) | 14.8 | 44.1 | |||||||||
Consolidation elimination adjustments | (29.9 | ) | (21.0 | ) | |||||||
Consolidated revenues | $ | 1,444.8 | $ | 1,413.5 | |||||||
Consolidated Income Before Taxes (Credits): | |||||||||||
Total income before income taxes (credits) | |||||||||||
and realized investment gains or losses of | |||||||||||
above Company segments | $ | 148.7 | $ | 136.2 | |||||||
Other sources - net (b) | 1.1 | 1.9 | |||||||||
Consolidated net realized investment gains (losses) | 14.8 | 44.1 | |||||||||
Consolidated income before income | |||||||||||
taxes (credits) | $ | 164.7 | $ | 182.3 | |||||||
Consolidated Income Tax Expense (Credits): | |||||||||||
Total income tax expense (credits) | |||||||||||
for above Company segments | $ | 47.1 | $ | 44.0 | |||||||
Other sources - net (b) | (.7 | ) | (.1 | ) | |||||||
Income tax expense (credits) on consolidated | |||||||||||
net realized investment gains (losses) | 5.1 | 15.4 | |||||||||
Consolidated income tax expense (credits) | $ | 51.6 | $ | 59.3 |
March 31, | December 31, | ||||||
2017 | 2016 | ||||||
Consolidated Assets: | |||||||
General Insurance | $ | 15,546.1 | $ | 15,305.7 | |||
Title Insurance | 1,438.9 | 1,423.0 | |||||
RFIG Run-off Business | 887.7 | 904.8 | |||||
Total assets for the above company segments | 17,872.8 | 17,633.6 | |||||
Other assets (b) | 1,353.1 | 1,301.8 | |||||
Consolidation elimination adjustments | (320.5 | ) | (343.9 | ) | |||
Consolidated assets | $ | 18,905.4 | $ | 18,591.6 |
(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 - $14.1 and $12.1 for the quarters ended March 31, 2017 and 2016, respectively, and Title - $2.1 for both quarters ended March 31, 2017 and 2016. |
(b) | Represents amounts for Old Republic's holding company parent, minor corporate services subsidiaries, and a small life and accident insurance operation. |
March 31, 2017 | December 31, 2016 | ||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||
3.75% Convertible Senior Notes due 2018 | $ | 548.2 | $ | 735.5 | $ | 547.8 | $ | 689.5 | |||||||
4.875% Senior Notes due 2024 | 395.8 | 426.6 | 395.6 | 417.4 | |||||||||||
3.875% Senior Notes due 2026 | 544.7 | 542.4 | 544.6 | 531.9 | |||||||||||
ESSOP debt with an average yield of 4.28% | |||||||||||||||
and 3.98%, respectively | 4.2 | 4.2 | 8.1 | 8.1 | |||||||||||
Other miscellaneous debt with an average yield of 2.2% | |||||||||||||||
and 1.9%, respectively | 32.4 | 32.5 | 32.4 | 32.5 | |||||||||||
Total debt | $ | 1,525.5 | $ | 1,741.3 | $ | 1,528.7 | $ | 1,679.7 |
Carrying | Fair | |||||||||||||||||||
Value | Value | Level 1 | Level 2 | Level 3 | ||||||||||||||||
Financial Liabilities: | ||||||||||||||||||||
Debt: | ||||||||||||||||||||
March 31, 2017 | $ | 1,525.5 | $ | 1,741.3 | $ | — | $ | 1,704.6 | $ | 36.7 | ||||||||||
December 31, 2016 | $ | 1,528.7 | $ | 1,679.7 | $ | — | $ | 1,639.0 | $ | 40.6 |
OVERVIEW |
EXECUTIVE SUMMARY |
Financial Highlights | |||||||||||||
Quarters Ended March 31, | |||||||||||||
2017 | 2016 | ||||||||||||
Operating revenues: | |||||||||||||
General insurance | $ | 849.0 | $ | 824.6 | |||||||||
Title insurance | 527.8 | 483.6 | |||||||||||
Corporate and other | 11.9 | 7.3 | |||||||||||
Subtotal | 1,388.8 | 1,315.6 | |||||||||||
RFIG run-off business | 41.1 | 53.7 | |||||||||||
Total | $ | 1,429.9 | $ | 1,369.3 | |||||||||
Pretax operating income (loss): | |||||||||||||
General insurance | $ | 93.7 | $ | 87.0 | |||||||||
Title insurance | 40.4 | 21.4 | |||||||||||
Corporate and other | 1.1 | 1.9 | |||||||||||
Subtotal | 135.3 | 110.4 | |||||||||||
RFIG run-off business | 14.5 | 27.7 | |||||||||||
Total | 149.8 | 138.1 | |||||||||||
Realized investment gains (losses): | |||||||||||||
From sales | 14.8 | 44.1 | |||||||||||
From impairments | — | — | |||||||||||
Net realized investment gains (losses) | 14.8 | 44.1 | |||||||||||
Consolidated pretax income (loss) | 164.7 | 182.3 | |||||||||||
Income taxes (credits) | 51.6 | 59.3 | |||||||||||
Net income (loss) | $ | 113.1 | $ | 122.9 | |||||||||
Components of diluted | |||||||||||||
earnings per share: | |||||||||||||
Net operating income (loss): | |||||||||||||
General insurance | $ | 0.22 | $ | 0.20 | |||||||||
Title insurance | 0.09 | 0.05 | |||||||||||
Corporate and other | 0.02 | 0.02 | |||||||||||
Subtotal | 0.33 | 0.27 | |||||||||||
RFIG run-off business | 0.03 | 0.06 | |||||||||||
Total | 0.36 | 0.33 | |||||||||||
Net realized investment gains (losses) | 0.03 | 0.10 | |||||||||||
Net income (loss) | $ | 0.39 | $ | 0.43 | |||||||||
Cash dividends paid per share | $ | 0.1900 | $ | 0.1875 | |||||||||
Ending book value per share | $ | 17.62 | $ | 16.00 |
General Insurance Results - The table below shows the major elements affecting this segment's performance for each of the quarterly periods reported upon. |
General Insurance Group | |||||||||||||||||||
Quarters Ended March 31, | |||||||||||||||||||
2017 | 2016 | Change | |||||||||||||||||
Net premiums earned | $ | 742.8 | $ | 718.9 | 3.3 | % | |||||||||||||
Net investment income | 78.8 | 78.6 | 0.3 | ||||||||||||||||
Other income | 27.3 | 27.1 | 0.9 | ||||||||||||||||
Operating revenues | 849.0 | 824.6 | 3.0 | ||||||||||||||||
Benefits and claim costs | 527.6 | 524.9 | 0.5 | ||||||||||||||||
Sales and general expenses | 211.9 | 199.0 | 6.5 | ||||||||||||||||
Interest and other costs | 15.6 | 13.6 | 15.1 | ||||||||||||||||
Total operating expenses | 755.3 | 737.5 | 2.4 | ||||||||||||||||
Pretax operating income (loss)(*) | $ | 93.7 | $ | 87.0 | 7.6 | % |
Benefit and claim ratio | 71.0 | % | 73.0 | % | ||||||||||
Expense ratio | 24.9 | 23.9 | ||||||||||||
Composite underwriting ratio | 95.9 | % | 96.9 | % |
Title Insurance Results - This year's first quarter operating income was better than expected as both revenues and claim costs extended the favorable trends of recent years. |
Title Insurance Group | |||||||||||||||||||
Quarters Ended March 31, | |||||||||||||||||||
2017 | 2016 | Change | |||||||||||||||||
Net premiums and fees earned | $ | 518.0 | $ | 474.1 | 9.2 | % | |||||||||||||
Net investment income | 9.5 | 9.0 | 4.8 | ||||||||||||||||
Other income | 0.2 | 0.3 | (22.6 | ) | |||||||||||||||
Operating revenues | 527.8 | 483.6 | 9.1 | ||||||||||||||||
Claim costs | 11.0 | 24.3 | (54.8 | ) | |||||||||||||||
Sales and general expenses | 474.0 | 435.7 | 8.8 | ||||||||||||||||
Interest and other costs | 2.2 | 2.0 | 6.7 | ||||||||||||||||
Total operating expenses | 487.3 | 462.1 | 5.4 | ||||||||||||||||
Pretax operating income (loss) | $ | 40.4 | $ | 21.4 | 89.0 | % |
Claim ratio | 2.1 | % | 5.1 | % | ||||||||||
Expense ratio | 91.5 | 91.8 | ||||||||||||
Composite underwriting ratio | 93.6 | % | 96.9 | % |
Please see next page for the continuing report |
RFIG Run-off Business Results - Overall pretax operating income for this year’s first quarter was affected by mixed results for the two components of this run-off book of business. |
RFIG Run-off Business | |||||||||||||||||||
Quarter Ended March 31, | |||||||||||||||||||
2017 | 2016 | Change | |||||||||||||||||
A. Mortgage Insurance (MI) | |||||||||||||||||||
Net premiums earned | $ | 31.3 | $ | 44.3 | (29.3 | )% | |||||||||||||
Net investment income | 5.2 | 5.6 | (7.6 | ) | |||||||||||||||
Claim costs | 10.9 | 10.6 | 2.8 | ||||||||||||||||
Pretax operating income (loss) | $ | 19.3 | $ | 34.1 | (43.2 | )% |
Claim ratio | 35.0 | % | 24.1 | % | ||||||||||
Expense ratio | 19.9 | 11.9 | ||||||||||||
Composite underwriting ratio | 54.9 | % | 36.0 | % |
B. Consumer Credit Insurance (CCI) | |||||||||||||||||||
Net premiums earned | $ | 4.2 | $ | 3.4 | 22.8 | % | |||||||||||||
Net investment income | 0.3 | 0.2 | 25.1 | ||||||||||||||||
Benefits and claim costs | 8.8 | 9.4 | (6.7 | ) | |||||||||||||||
Pretax operating income (loss)(*) | $ | (4.8 | ) | $ | (6.3 | ) | 23.3 | % |
Claim ratio | 209.2 | % | 275.3 | % | ||||||||||
Expense ratio | 13.9 | 17.1 | ||||||||||||
Composite underwriting ratio | 223.1 | % | 292.4 | % |
C. Total MI and CCI run-off business: | |||||||||||||||||||
Net premiums earned | $ | 35.5 | $ | 47.8 | (25.6 | )% | |||||||||||||
Net investment income | 5.5 | 5.9 | (6.2 | ) | |||||||||||||||
Benefits and claim costs | 19.8 | 20.1 | (1.7 | ) | |||||||||||||||
Pretax operating income (loss) | $ | 14.5 | $ | 27.7 | (47.7 | )% |
Claim ratio | 55.7 | % | 42.2 | % | ||||||||||
Expense ratio | 19.2 | 12.3 | ||||||||||||
Composite underwriting ratio | 74.9 | % | 54.5 | % |
Corporate and Other Operations - The combination of a small life and accident insurance business and the net costs associated with operations of the parent holding company and its internal services subsidiaries usually produce highly variable results. Earnings variations posted by these elements of Old Republic's business stem from volatility inherent to the small scale of the life and accident insurance line, net investment income, and net interest charges pertaining to external and intra-system financing arrangements. The interplay of these various operating elements is summarized in the following table: |
Corporate and Other Operations | |||||||||||||
Quarters Ended March 31, | |||||||||||||
2017 | 2016 | ||||||||||||
Net premiums earned | $ | 4.6 | $ | 4.8 | |||||||||
Net investment income | 7.2 | 2.6 | |||||||||||
Other income | — | (0.1 | ) | ||||||||||
Operating revenues | 11.9 | 7.3 | |||||||||||
Benefits and claim costs | 5.0 | 4.5 | |||||||||||
Insurance expenses | 3.8 | 2.2 | |||||||||||
Corporate, interest, and other expenses-net | 1.8 | (1.4 | ) | ||||||||||
Total operating expenses | 10.8 | 5.4 | |||||||||||
Pretax operating income (loss) | $ | 1.1 | $ | 1.9 |
Consolidated Results - The consolidated changes and occurrences in Old Republic’s segmented business are reflected in the table below. |
ORI Consolidated | ||||||||||||||||||
Quarters Ended March 31, | ||||||||||||||||||
2017 | 2016 | Change | ||||||||||||||||
Net premiums and fees earned | $ | 1,301.0 | $ | 1,245.7 | 4.4 | % | ||||||||||||
Net investment income | 101.2 | 96.3 | 5.1 | |||||||||||||||
Other income | 27.6 | 27.3 | 1.1 | |||||||||||||||
Operating revenues | 1,429.9 | 1,369.3 | 4.4 | |||||||||||||||
Benefits and claim costs | 563.4 | 574.0 | (1.8 | ) | ||||||||||||||
Sales and general expenses | 700.2 | 646.3 | 8.3 | |||||||||||||||
Interest and other costs | 16.4 | 10.7 | 52.6 | |||||||||||||||
Total operating expenses | 1,280.1 | 1,231.1 | 4.0 | |||||||||||||||
Pretax operating income (loss) | 149.8 | 138.1 | 8.5 | |||||||||||||||
Income taxes (credits) | 46.4 | 43.9 | 5.7 | |||||||||||||||
Net operating income (loss) | 103.4 | 94.2 | 9.8 | |||||||||||||||
Realized investment gains (losses) | 14.8 | 44.1 | (66.4 | ) | ||||||||||||||
Income taxes (credits) on realized | ||||||||||||||||||
investment gains (losses) | 5.1 | 15.4 | (66.4 | ) | ||||||||||||||
Net realized investment | ||||||||||||||||||
gains (losses) | 9.6 | 28.7 | (66.4 | ) | ||||||||||||||
Net income (loss) | $ | 113.1 | $ | 122.9 | (8.0 | )% |
Benefit and claim ratio | 43.3 | % | 46.1 | % | ||||||||||
Expense ratio | 51.4 | 49.4 | ||||||||||||
Composite underwriting ratio | 94.7 | % | 95.5 | % |
Consolidated operating cash flow | $ | 146.1 | $ | 125.9 | 16.0 | % |
Quarters Ended March 31, | ||||||||||||||||||
2017 | 2016 | Change | ||||||||||||||||
Pretax operating income: | ||||||||||||||||||
Underwriting and related services: | ||||||||||||||||||
All segments except RFIG | $ | 56.0 | $ | 30.8 | 82.0 | % | ||||||||||||
RFIG run-off | 8.9 | 21.7 | (59.1 | ) | ||||||||||||||
Subtotal | 65.0 | 52.6 | 23.6 | |||||||||||||||
Net investment income | 101.2 | 96.3 | 5.1 | |||||||||||||||
Interest and other costs | (16.4 | ) | (10.7 | ) | 52.6 | |||||||||||||
Total | 149.8 | 138.1 | 8.5 | |||||||||||||||
Realized investment gains(losses) | 14.8 | 44.1 | (66.4 | ) | ||||||||||||||
Consolidated pretax income | $ | 164.7 | $ | 182.3 | (9.7 | )% |
Cash, Invested Assets, and Shareholders' Equity - The table below shows Old Republic's consolidated cash and invested assets as well as the shareholders' equity balance at the dates shown. |
Cash, Invested Assets, and Shareholders' Equity | ||||||||||||||||||||
% Change | ||||||||||||||||||||
March 31, | Dec. 31, | March 31, | March '17 / | March '17 / | ||||||||||||||||
2017 | 2016 | 2016 | Dec. '16 | March '16 | ||||||||||||||||
Cash and invested assets: | ||||||||||||||||||||
Available for sale carried at fair value | $ | 12,110.6 | $ | 12,021.0 | $ | 11,377.3 | 0.7 | % | 6.4 | % | ||||||||||
Held to maturity carried at amortized cost | 1,056.9 | 974.8 | 511.4 | 8.4 | 106.7 | |||||||||||||||
Total per balance sheet | $ | 13,167.5 | $ | 12,995.8 | $ | 11,888.7 | 1.3 | % | 10.8 | % | ||||||||||
Original cost basis of all | $ | 12,466.8 | $ | 12,360.3 | $ | 11,429.3 | 0.9 | % | 9.1 | % | ||||||||||
Shareholders' equity: Total | $ | 4,596.6 | $ | 4,471.6 | $ | 4,142.6 | 2.8 | % | 11.0 | % | ||||||||||
Per common share | $ | 17.62 | $ | 17.20 | $ | 16.00 | 2.4 | % | 10.1 | % | ||||||||||
Composition of shareholders' equity per share: | ||||||||||||||||||||
Equity before items below | $ | 16.21 | $ | 15.96 | $ | 15.19 | 1.6 | % | 6.7 | % | ||||||||||
Unrealized investment gains (losses) and other | ||||||||||||||||||||
accumulated comprehensive income (loss) | 1.41 | 1.24 | 0.81 | |||||||||||||||||
Total | $ | 17.62 | $ | 17.20 | $ | 16.00 | 2.4 | % | 10.1 | % | ||||||||||
Segmented composition of | ||||||||||||||||||||
shareholders' equity per share: | ||||||||||||||||||||
Excluding run-off segment | $ | 16.30 | $ | 15.93 | $ | 14.92 | 2.3 | % | 9.2 | % | ||||||||||
RFIG run-off segment | 1.32 | 1.27 | 1.08 | |||||||||||||||||
Consolidated total | $ | 17.62 | $ | 17.20 | $ | 16.00 | 2.4 | % | 10.1 | % |
Shareholders' Equity Per Share | |||||||||||||
Quarters Ended March 31, | |||||||||||||
2017 | 2016 | ||||||||||||
Beginning balance | $ | 17.20 | $ | 15.02 | |||||||||
Changes in shareholders' equity: | |||||||||||||
Net operating income (loss) | 0.40 | 0.37 | |||||||||||
Net realized investment gains (losses): | |||||||||||||
From sales | 0.03 | 0.11 | |||||||||||
From impairments | — | — | |||||||||||
Subtotal | 0.03 | 0.11 | |||||||||||
Net unrealized investment gains (losses) | 0.16 | 0.67 | |||||||||||
Total realized and unrealized investment gains (losses) | 0.19 | 0.78 | |||||||||||
Cash dividends | (0.19 | ) | (0.19 | ) | |||||||||
Stock issuance, foreign exchange, and other transactions | 0.02 | 0.02 | |||||||||||
Net change | 0.42 | 0.98 | |||||||||||
Ending balance | $ | 17.62 | $ | 16.00 | |||||||||
Percentage change for the period | 2.4 | % | 6.5 | % |
Capitalization - The following table indicates that Old Republic's capitalization has risen since March 31, 2016 due to the issuance of additional debt and growing equity in the shareholders' account. |
Capitalization | ||||||||||||
March 31, | December 31, | March 31, | ||||||||||
2017 | 2016 | 2016 | ||||||||||
Debt: | ||||||||||||
3.75% Convertible Senior Notes due 2018 | $ | 548.2 | $ | 547.8 | $ | 546.4 | ||||||
4.875% Senior Notes due 2024 | 395.8 | 395.6 | 395.2 | |||||||||
3.875% Senior Notes due 2026 | 544.7 | 544.6 | — | |||||||||
ESSOP debt with an average yield of 4.3% | 4.2 | 8.1 | 8.1 | |||||||||
Other miscellaneous debt with an average yield of 2.2% | 32.4 | 32.4 | 32.4 | |||||||||
Total debt | 1,525.5 | 1,528.7 | 982.3 | |||||||||
Common shareholders' equity | 4,596.6 | 4,471.6 | 4,142.6 | |||||||||
Total capitalization | $ | 6,122.1 | $ | 6,000.4 | $ | 5,125.0 | ||||||
Capitalization ratios: | ||||||||||||
Debt | 24.9 | % | 25.5 | % | 19.2 | % | ||||||
Common shareholders' equity | 75.1 | 74.5 | 80.8 | |||||||||
Total | 100.0 | % | 100.0 | % | 100.0 | % |
DETAILED MANAGEMENT ANALYSIS |
FINANCIAL ACCOUNTING AND REPORTING POLICIES |
FINANCIAL POSITION |
Credit Quality Ratings of Fixed Maturity Securities (a) | |||||
March 31, | December 31, | ||||
2017 | 2016 | ||||
Aaa | 20.4 | % | 20.1 | % | |
Aa | 12.7 | 12.1 | |||
A | 30.1 | 30.9 | |||
Baa | 29.6 | 28.9 | |||
Total investment grade | 92.8 | 92.0 | |||
All other (b) | 7.2 | 8.0 | |||
Total | 100.0 | % | 100.0 | % |
(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, which are converted to the above ratings classifications. |
(b) | "All other" includes non-investment grade or non-rated issuers. |
Gross Unrealized Losses Stratified by Industry Concentration for Non-Investment Grade Fixed Maturity Securities | |||||||||||
March 31, 2017 | Amortized Cost | Gross Unrealized Losses | |||||||||
Fixed Maturity Securities by Industry Concentration: | |||||||||||
Telecom | $ | 23.7 | $ | 3.3 | |||||||
Energy | 100.3 | 3.3 | |||||||||
Basic Industry | 22.5 | .8 | |||||||||
Industrial | 48.0 | .3 | |||||||||
Other (includes 4 industry groups) | 42.3 | .3 | |||||||||
Total | $ | 236.9 | (c) | $ | 8.2 |
(c) | Represents 2.6% of the total fixed maturity securities portfolio. |
Gross Unrealized Losses Stratified by Industry Concentration for Investment Grade Fixed Maturity Securities | |||||||||||
March 31, 2017 | Amortized Cost | Gross Unrealized Losses | |||||||||
Fixed Maturity Securities by Industry Concentration: | |||||||||||
Municipal | $ | 739.6 | $ | 19.7 | |||||||
Utilities | 262.1 | 3.6 | |||||||||
U.S. Government & Agencies | 650.0 | 3.3 | |||||||||
Industrials | 91.1 | 1.4 | |||||||||
Other (includes 16 industry groups) | 765.3 | 9.4 | |||||||||
Total | $ | 2,508.3 | (d) | $ | 37.6 |
(d) | Represents 27.8% of the total fixed maturity securities portfolio. |
Gross Unrealized Losses Stratified by Industry Concentration for Equity Securities | |||||||||||
March 31, 2017 | Cost | Gross Unrealized Losses | |||||||||
Equity Securities by Industry Concentration: | |||||||||||
Energy | $ | 333.8 | $ | 23.5 | |||||||
Health Care | 89.0 | 3.7 | |||||||||
Other (includes 3 industry groups) | 16.4 | .2 | |||||||||
Total | $ | 439.4 | (e) | $ | 27.6 | (f) |
(e) | Represents 17.8% of the total equity securities portfolio. |
(f) | Represents 1.1% of the cost of the total equity securities portfolio, while gross unrealized gains represent 22.9% of the portfolio. |
Gross Unrealized Losses Stratified by Maturity Ranges for All Fixed Maturity Securities | ||||||||||||||||||
Amortized Cost of Fixed Maturity Securities | Gross Unrealized Losses | |||||||||||||||||
March 31, 2017 | All | Non- Investment Grade Only | All | Non- Investment Grade Only | ||||||||||||||
Maturity Ranges: | ||||||||||||||||||
Due in one year or less | $ | 300.5 | $ | 1.9 | $ | .6 | $ | — | ||||||||||
Due after one year through five years | 782.8 | 114.6 | 7.4 | 2.4 | ||||||||||||||
Due after five years through ten years | 1,615.8 | 101.0 | 33.8 | 2.3 | ||||||||||||||
Due after ten years | 46.1 | 19.3 | 3.9 | 3.4 | ||||||||||||||
Total | $ | 2,745.3 | $ | 236.9 | $ | 45.9 | $ | 8.2 |
Gross Unrealized Losses Stratified by Duration and Amount of Unrealized Losses | ||||||||||||||||||||
Amount of Gross Unrealized Losses | ||||||||||||||||||||
March 31, 2017 | Less than 20% of Cost | 20% to 50% of Cost | More than 50% of Cost | Total Gross Unrealized Loss | ||||||||||||||||
Number of Months in Loss Position: | ||||||||||||||||||||
Fixed Maturity Securities: | ||||||||||||||||||||
One to six months | $ | 37.7 | $ | — | $ | — | $ | 37.7 | ||||||||||||
Seven to twelve months | .7 | — | — | .7 | ||||||||||||||||
More than twelve months | 4.8 | 2.5 | — | 7.4 | ||||||||||||||||
Total | $ | 43.3 | $ | 2.5 | $ | — | $ | 45.9 | ||||||||||||
Equity Securities: | ||||||||||||||||||||
One to six months | $ | 4.4 | $ | — | $ | — | $ | 4.4 | ||||||||||||
Seven to twelve months | 3.8 | — | — | 3.8 | ||||||||||||||||
More than twelve months | 19.3 | — | — | 19.3 | ||||||||||||||||
Total | $ | 27.6 | $ | — | $ | — | $ | 27.6 | ||||||||||||
Number of Issues in Loss Position: | ||||||||||||||||||||
Fixed Maturity Securities: | ||||||||||||||||||||
One to six months | 608 | — | — | 608 | ||||||||||||||||
Seven to twelve months | 10 | — | — | 10 | ||||||||||||||||
More than twelve months | 41 | 1 | — | 42 | ||||||||||||||||
Total | 659 | 1 | — | 660 | (g) | |||||||||||||||
Equity Securities: | ||||||||||||||||||||
One to six months | 7 | — | — | 7 | ||||||||||||||||
Seven to twelve months | 2 | — | — | 2 | ||||||||||||||||
More than twelve months | 2 | — | — | 2 | ||||||||||||||||
Total | 11 | — | — | 11 | (g) |
(g) | At March 31, 2017 the number of issues in an unrealized loss position represent 33.5% as to fixed maturities, and 10.4% as to equity securities of the total number of such issues held by the Company. |
Age Distribution of Fixed Maturity Securities | |||||||||
March 31, | December 31, | ||||||||
2017 | 2016 | ||||||||
Maturity Ranges: | |||||||||
Due in one year or less | 11.2 | % | 9.2 | % | |||||
Due after one year through five years | 43.7 | 45.0 | |||||||
Due after five years through ten years | 43.5 | 43.9 | |||||||
Due after ten years through fifteen years | 1.4 | 1.6 | |||||||
Due after fifteen years | .2 | .3 | |||||||
Total | 100.0 | % | 100.0 | % | |||||
Average Maturity in Years | 4.8 | 4.8 | |||||||
Duration (h) | 4.2 | 4.2 |
(h) | Duration is used as a measure of bond price sensitivity to interest rate changes. A duration of 4.2 as of March 31, 2017 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 4.2%. |
Composition of Unrealized Gains (Losses) | |||||||||||
March 31, | December 31, | ||||||||||
2017 | 2016 | ||||||||||
Available for Sale: | |||||||||||
Fixed Maturity Securities: | |||||||||||
Amortized cost | $ | 7,967.4 | $ | 8,019.6 | |||||||
Estimated fair value | 8,135.8 | 8,170.9 | |||||||||
Gross unrealized gains | 194.5 | 187.6 | |||||||||
Gross unrealized losses | (26.1 | ) | (36.3 | ) | |||||||
Net unrealized gains (losses) | $ | 168.4 | $ | 151.3 | |||||||
Equity Securities: | |||||||||||
Original cost | $ | 2,472.9 | $ | 2,404.9 | |||||||
Estimated fair value | 3,012.2 | 2,896.1 | |||||||||
Gross unrealized gains | 566.8 | 516.2 | |||||||||
Gross unrealized losses | (27.6 | ) | (25.0 | ) | |||||||
Net unrealized gains (losses) | $ | 539.2 | $ | 491.2 |
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: | ||||||||||||||||||||||
2014 | $ | 2,735.6 | $ | 1,759.2 | $ | 255.4 | $ | 60.7 | $ | 4,811.1 | (1.5 | )% | ||||||||||
2015 | 2,894.7 | 2,045.3 | 219.9 | 19.4 | 5,179.4 | 7.7 | ||||||||||||||||
2016 | 2,936.3 | 2,206.6 | 170.0 | 20.1 | 5,333.2 | 3.0 | ||||||||||||||||
Quarters Ended March 31: | ||||||||||||||||||||||
2016 | 718.9 | 474.1 | 47.8 | 4.8 | 1,245.7 | 4.3 | ||||||||||||||||
2017 | $ | 742.8 | $ | 518.0 | $ | 35.5 | $ | 4.6 | $ | 1,301.0 | 4.4 | % |
General Insurance Earned Premiums by Type of Coverage | |||||||||||||||||
Workers' Compensation | Commercial Automobile (mostly trucking) | Financial Indemnity | Inland Marine and Property | General Liability | Other | ||||||||||||
Years Ended December 31: | |||||||||||||||||
2014 | 40.6 | % | 31.9 | % | 3.9 | % | 7.5 | % | 6.2 | % | 9.9 | % | |||||
2015 | 39.0 | 32.1 | 4.1 | 7.4 | 5.9 | 11.5 | |||||||||||
2016 | 36.5 | 33.7 | 4.3 | 7.4 | 5.6 | 12.5 | |||||||||||
Quarters Ended March 31: | |||||||||||||||||
2016 | 37.7 | 33.7 | 4.2 | 7.4 | 5.7 | 11.3 | |||||||||||
2017 | 35.6 | % | 33.9 | % | 4.7 | % | 7.3 | % | 6.2 | % | 12.3 | % |
Title Premium and Fee Production by Source | |||||
Direct Operations | Independent Title Agents & Other | ||||
Years Ended December 31: | |||||
2014 | 27.1 | % | 72.9 | % | |
2015 | 27.2 | 72.8 | |||
2016 | 27.9 | 72.1 | |||
Quarters Ended March 31: | |||||
2016 | 26.8 | 73.2 | |||
2017 | 25.6 | % | 74.4 | % |
Earned Premiums | Persistency | ||||||||||||
Premium and Persistency Trends by Type: | Direct | Net | Traditional Primary | Bulk | |||||||||
Years Ended December 31: | |||||||||||||
2014 | $ | 234.6 | $ | 227.6 | 82.2 | % | 66.9 | % | |||||
2015 | 201.1 | 195.9 | 79.9 | 56.1 | |||||||||
2016 | 157.1 | 154.1 | 77.7 | 72.8 | |||||||||
Quarters Ended March 31: | |||||||||||||
2016 | 45.1 | 44.3 | 79.9 | 60.0 | |||||||||
2017 | $ | 31.4 | $ | 31.3 | 77.7 | % | 73.3 | % |
Net Risk in Force | |||||||||||||||
Net Risk in Force By Type: | Traditional Primary | Bulk | Other | Total | |||||||||||
As of December 31: | |||||||||||||||
2014 | $ | 7,984.8 | $ | 549.6 | $ | 31.8 | $ | 8,566.2 | |||||||
2015 | 6,414.9 | 428.2 | 24.1 | 6,867.3 | |||||||||||
2016 | 4,987.9 | 359.5 | 20.5 | 5,367.9 | |||||||||||
As of March 31: | |||||||||||||||
2016 | 6,059.2 | 410.3 | 23.7 | 6,493.3 | |||||||||||
2017 | $ | 4,715.6 | $ | 344.8 | $ | 20.1 | $ | 5,080.7 |
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: | |||||||||||
2014 | 6.6 | % | 28.5 | % | 64.0 | % | .9 | % | |||
2015 | 6.8 | 29.3 | 63.0 | .9 | |||||||
2016 | 7.2 | 30.5 | 61.5 | .8 | |||||||
As of March 31: | |||||||||||
2016 | 6.9 | 29.5 | 62.9 | .7 | |||||||
2017 | 7.2 | % | 30.7 | % | 61.2 | % | .9 | % | |||
Bulk(a): | |||||||||||
As of December 31: | |||||||||||
2014 | 26.1 | % | 33.1 | % | 40.7 | % | .1 | % | |||
2015 | 28.4 | 32.2 | 39.2 | .2 | |||||||
2016 | 29.9 | 32.0 | 38.0 | .1 | |||||||
As of March 31: | |||||||||||
2016 | 28.7 | 32.1 | 39.0 | .2 | |||||||
2017 | 30.3 | % | 32.0 | % | 37.5 | % | .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: | |||||||||||
2014 | 3.9 | % | 34.2 | % | 31.5 | % | 30.4 | % | |||
2015 | 3.8 | 33.5 | 30.9 | 31.8 | |||||||
2016 | 3.8 | 32.1 | 30.6 | 33.5 | |||||||
As of March 31: | |||||||||||
2016 | 3.8 | 33.2 | 30.9 | 32.1 | |||||||
2017 | 3.9 | % | 31.8 | % | 30.6 | % | 33.7 | % | |||
Bulk(a): | |||||||||||
As of December 31: | |||||||||||
2014 | 52.5 | % | 25.8 | % | 11.1 | % | 10.6 | % | |||
2015 | 48.3 | 28.0 | 11.9 | 11.8 | |||||||
2016 | 46.5 | 29.0 | 12.3 | 12.2 | |||||||
As of March 31: | |||||||||||
2016 | 47.9 | 28.3 | 11.8 | 12.0 | |||||||
2017 | 46.3 | % | 29.0 | % | 12.6 | % | 12.1 | % |
(a) | Bulk pool risk in-force, which represented 13.3% of total bulk risk in-force at March 31, 2017 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: | |||||||||||||||||||||||||||||
2014 | 7.8 | % | 7.3 | % | 5.7 | % | 5.3 | % | 4.9 | % | 4.8 | % | 4.3 | % | 4.0 | % | 3.4 | % | 3.0 | % | |||||||||
2015 | 7.1 | 7.5 | 5.9 | 5.5 | 4.9 | 4.7 | 4.3 | 4.2 | 3.4 | 3.4 | |||||||||||||||||||
2016 | 6.4 | 7.8 | 6.0 | 5.8 | 4.8 | 4.6 | 4.4 | 4.4 | 3.6 | 3.8 | |||||||||||||||||||
As of March 31: | |||||||||||||||||||||||||||||
2016 | 6.9 | 7.5 | 5.9 | 5.6 | 4.9 | 4.7 | 4.3 | 4.2 | 3.5 | 3.5 | |||||||||||||||||||
2017 | 6.2 | % | 7.8 | % | 6.0 | % | 5.9 | % | 4.8 | % | 4.5 | % | 4.3 | % | 4.5 | % | 3.6 | % | 3.9 | % |
Bulk (a) | |||||||||||||||||||||||||||||
TX | FL | GA | IL | CA | AZ | PA | NJ | OH | NY | ||||||||||||||||||||
As of December 31: | |||||||||||||||||||||||||||||
2014 | 5.3 | % | 9.3 | % | 4.6 | % | 4.0 | % | 13.0 | % | 2.7 | % | 3.5 | % | 4.4 | % | 4.0 | % | 7.6 | % | |||||||||
2015 | 5.1 | 8.9 | 4.7 | 4.0 | 12.8 | 2.8 | 3.6 | 4.4 | 4.2 | 7.4 | |||||||||||||||||||
2016 | 5.3 | 8.6 | 4.9 | 4.2 | 12.4 | 2.9 | 3.7 | 4.1 | 4.2 | 7.4 | |||||||||||||||||||
As of March 31: | |||||||||||||||||||||||||||||
2016 | 5.1 | 8.9 | 4.8 | 4.0 | 12.7 | 2.8 | 3.6 | 4.3 | 4.2 | 7.5 | |||||||||||||||||||
2017 | 5.3 | % | 8.6 | % | 5.0 | % | 4.2 | % | 12.5 | % | 2.9 | % | 3.7 | % | 4.0 | % | 4.3 | % | 7.5 | % |
Risk in Force Distribution By Level of Documentation: | Full Documentation | Reduced Documentation | |||
Traditional Primary: | |||||
As of December 31: | |||||
2014 | 92.7 | % | 7.3 | % | |
2015 | 92.6 | 7.4 | |||
2016 | 92.4 | 7.6 | |||
As of March 31: | |||||
2016 | 92.6 | 7.4 | |||
2017 | 92.3 | % | 7.7 | % | |
Bulk (a): | |||||
As of December 31: | |||||
2014 | 62.3 | % | 37.7 | % | |
2015 | 66.6 | 33.4 | |||
2016 | 68.0 | 32.0 | |||
As of March 31: | |||||
2016 | 67.1 | 32.9 | |||
2017 | 68.1 | % | 31.9 | % |
(a) | Bulk pool risk in-force, which represented 13.3% of total bulk risk in-force at March 31, 2017, 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: | |||||
2014 | 97.2 | % | 2.8 | % | |
2015 | 97.3 | 2.7 | |||
2016 | 97.2 | 2.8 | |||
As of March 31: | |||||
2016 | 97.2 | 2.8 | |||
2017 | 97.2 | % | 2.8 | % | |
Bulk (a): | |||||
As of December 31: | |||||
2014 | 72.4 | % | 27.6 | % | |
2015 | 71.8 | 28.2 | |||
2016 | 71.3 | 28.7 | |||
As of March 31: | |||||
2016 | 71.5 | 28.5 | |||
2017 | 70.9 | % | 29.1 | % |
(a) | Bulk pool risk in-force, which represented 13.3% of total bulk risk in-force at March 31, 2017, has been allocated pro-rata based on insurance in-force. |
Net CCI Earned Premiums | Risk in Force | ||||||
Years Ended December 31: | |||||||
2014 | $ | 27.7 | $ | 858.5 | |||
2015 | 23.9 | 776.9 | |||||
2016 | 15.8 | 699.7 | |||||
Quarters Ended March 31: | |||||||
2016 | 3.4 | 758.1 | |||||
2017 | $ | 4.2 | $ | 679.6 |
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: | |||||||||||||||||||||||||||
2015 | $ | 8,667.4 | $ | 1,010.5 | $ | 792.0 | $ | 562.3 | $ | 11,032.4 | $ | 193.0 | $ | 11,225.5 | |||||||||||||
2016 | 9,255.8 | 1,100.2 | 685.3 | 1,073.6 | 12,115.1 | 642.5 | 12,757.7 | ||||||||||||||||||||
As of March 31: | |||||||||||||||||||||||||||
2016 | 8,981.7 | 1,024.4 | 766.9 | 422.4 | 11,195.5 | 461.5 | 11,657.0 | ||||||||||||||||||||
2017 | $ | 9,328.7 | $ | 1,111.3 | $ | 635.7 | $ | 1,110.7 | $ | 12,186.5 | $ | 707.8 | $ | 12,894.4 |
Net Investment Income | Yield at | ||||||||||||||||||||||||
General | Title | RFIG Run-off | Corporate and Other | Total | Cost | Fair Value | |||||||||||||||||||
Years Ended | |||||||||||||||||||||||||
December 31: | |||||||||||||||||||||||||
2014 | $ | 278.8 | $ | 29.9 | $ | 27.5 | $ | 9.2 | $ | 345.5 | 3.33 | % | 3.15 | % | |||||||||||
2015 | 312.1 | 34.0 | 25.1 | 17.2 | 388.6 | 3.61 | 3.49 | ||||||||||||||||||
2016 | 312.1 | 36.2 | 23.2 | 15.4 | 387.0 | 3.34 | 3.23 | ||||||||||||||||||
Quarters Ended | |||||||||||||||||||||||||
March 31: | |||||||||||||||||||||||||
2016 | 78.6 | 9.0 | 5.9 | 2.6 | 96.3 | 3.47 | 3.37 | ||||||||||||||||||
2017 | $ | 78.8 | $ | 9.5 | $ | 5.5 | $ | 7.2 | $ | 101.2 | 3.33 | % | 3.16 | % |
Revenues: Net Realized Gains (Losses) |
Realized Gains (Losses) on Disposition of Securities | Impairment Losses on Securities | ||||||||||||||||||||||||||
Fixed maturity securities | Equity securities and miscel- laneous investments | Total | Fixed maturity securities | Equity securities and miscel- laneous investments | Total | Net realized gains (losses) | |||||||||||||||||||||
Years Ended | |||||||||||||||||||||||||||
December 31: | |||||||||||||||||||||||||||
2014 | $ | 27.0 | $ | 245.2 | $ | 272.3 | $ | — | $ | — | $ | — | $ | 272.3 | |||||||||||||
2015 | 16.3 | 75.0 | 91.3 | — | — | — | 91.3 | ||||||||||||||||||||
2016 | 7.8 | 69.9 | 77.8 | (4.9 | ) | — | (4.9 | ) | 72.8 | ||||||||||||||||||
Quarters Ended | |||||||||||||||||||||||||||
March 31: | |||||||||||||||||||||||||||
2016 | 2.2 | 41.8 | 44.1 | — | — | — | 44.1 | ||||||||||||||||||||
2017 | $ | 2.6 | $ | 12.1 | $ | 14.8 | $ | — | $ | — | $ | — | $ | 14.8 |
Expenses: Benefits and Claims |
Claim and Loss Adjustment Expense Reserves | ||||||||||||||||||
March 31, 2017 | December 31, 2016 | |||||||||||||||||
Gross | Net | Gross | Net | |||||||||||||||
Workers' compensation | $ | 4,612.2 | $ | 2,917.4 | $ | 4,587.0 | $ | 2,883.3 | ||||||||||
General liability | 1,059.7 | 549.1 | 1,064.0 | 550.3 | ||||||||||||||
Commercial automobile (mostly trucking) | 1,411.7 | 1,113.5 | 1,380.8 | 1,090.8 | ||||||||||||||
Other coverages | 774.4 | 540.4 | 769.5 | 539.3 | ||||||||||||||
Unallocated loss adjustment expense reserves | 213.3 | 191.1 | 206.9 | 186.0 | ||||||||||||||
Total general insurance reserves | 8,071.5 | 5,311.7 | 8,008.3 | 5,249.9 | ||||||||||||||
Title | 598.1 | 598.1 | 602.0 | 602.0 | ||||||||||||||
RFIG Run-off | 540.2 | 540.2 | 574.0 | 574.0 | ||||||||||||||
Life and accident | 21.4 | 14.2 | 21.5 | 13.8 | ||||||||||||||
Total claim and loss adjustment expense reserves | $ | 9,231.3 | $ | 6,464.3 | $ | 9,206.0 | $ | 6,439.8 | ||||||||||
Asbestosis and environmental claim reserves included | ||||||||||||||||||
in the above general insurance reserves: | ||||||||||||||||||
Amount | $ | 126.1 | $ | 99.1 | $ | 121.2 | $ | 97.1 | ||||||||||
% of total general insurance reserves | 1.6 | % | 1.9 | % | 1.5 | % | 1.9 | % |
March 31, | March 31, | December 31, | December 31, | ||||||||||||
2017 | 2016 | 2016 | 2015 | ||||||||||||
Estimated reduction in beginning reserve | $ | 29.6 | $ | 47.5 | $ | 47.5 | $ | 79.3 | |||||||
Total incurred claims and settlement expenses | |||||||||||||||
reduced (increased) by changes in | |||||||||||||||
estimated rescissions: | |||||||||||||||
Current year | 1.7 | 2.9 | 8.3 | 18.8 | |||||||||||
Prior year | (1.6 | ) | (.4 | ) | (24.8 | ) | (17.6 | ) | |||||||
Sub-total | .1 | 2.5 | (16.5 | ) | 1.2 | ||||||||||
Estimated rescission reduction in paid claims | (3.0 | ) | (6.4 | ) | (1.4 | ) | (33.0 | ) | |||||||
Estimated reduction in ending reserve | $ | 26.7 | $ | 43.6 | $ | 29.6 | $ | 47.5 |
Quarters Ended | |||||||
March 31, | |||||||
2017 | 2016 | ||||||
Gross reserves at beginning of period | $ | 9,206.0 | $ | 9,120.2 | |||
Less: reinsurance losses recoverable | 2,766.1 | 2,732.5 | |||||
Net reserves at beginning of period: | |||||||
General Insurance | 5,249.9 | 5,053.1 | |||||
Title Insurance | 602.0 | 580.8 | |||||
RFIG Run-off | 574.0 | 736.7 | |||||
Other | 13.8 | 16.9 | |||||
Sub-total | 6,439.8 | 6,387.6 | |||||
Incurred claims and claim adjustment expenses: | |||||||
Provisions for insured events of the current year: | |||||||
General Insurance | 513.3 | 518.7 | |||||
Title Insurance | 21.3 | 24.4 | |||||
RFIG Run-off (a) | 32.8 | 40.6 | |||||
Other | 7.0 | 6.0 | |||||
Sub-total | 574.6 | 589.7 | |||||
Change in provision for insured events of prior years: | |||||||
General Insurance | 10.1 | 1.9 | |||||
Title Insurance | (10.3 | ) | — | ||||
RFIG Run-off (a) | (13.0 | ) | (20.4 | ) | |||
Other | (1.8 | ) | (.9 | ) | |||
Sub-total | (15.1 | ) | (19.4 | ) | |||
Total incurred claims and claim adjustment expenses (a) | 559.5 | 570.3 | |||||
Payments: | |||||||
Claims and claim adjustment expenses attributable to | |||||||
insured events of the current year: | |||||||
General Insurance | 94.1 | 93.5 | |||||
Title Insurance | .2 | .1 | |||||
RFIG Run-off (b) | .2 | — | |||||
Other | 2.5 | 2.5 | |||||
Sub-total | 97.1 | 96.3 | |||||
Claims and claim adjustment expenses attributable to | |||||||
insured events of prior years: | |||||||
General Insurance | 367.5 | 379.3 | |||||
Title Insurance | 14.7 | 17.4 | |||||
RFIG Run-off (b) | 53.4 | 59.4 | |||||
Other | 2.2 | 4.9 | |||||
Sub-total | 437.8 | 461.1 | |||||
Total payments (b) | 535.0 | 557.5 | |||||
Amount of reserves for unpaid claims and claim adjustment expenses | |||||||
at the end of each period, net of reinsurance losses recoverable: (c) | |||||||
General Insurance | 5,311.7 | 5,100.8 | |||||
Title Insurance | 598.1 | 587.6 | |||||
RFIG Run-off | 540.2 | 697.3 | |||||
Other | 14.2 | 14.5 | |||||
Sub-total | 6,464.3 | 6,400.4 | |||||
Reinsurance losses recoverable | 2,766.9 | 2,667.1 | |||||
Gross reserves at end of period | $ | 9,231.3 | $ | 9,067.5 |
(a) | In common with all other insurance lines, 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. As previously noted, changes in mortgage guaranty aggregate case, IBNR, and loss adjustment expense reserves shown below and entering into the determination of incurred claim costs, take into account, among a large number of variables, claim cost reductions for anticipated coverage rescissions and claims denials. |
Quarters Ended | ||||||||||
March 31, | ||||||||||
2017 | 2016 | |||||||||
Net reserve increase(decrease): | ||||||||||
General Insurance | $ | 61.8 | $ | 47.7 | ||||||
Title Insurance | (3.9 | ) | 6.8 | |||||||
RFIG Run-off | (33.7 | ) | (39.3 | ) | ||||||
Other | .3 | (2.3 | ) | |||||||
Total | $ | 24.4 | $ | 12.7 |
(b) | Rescissions reduced the Company's paid losses by an estimated $(3.0) and $(6.4) for the year-to-date periods ended March 31, 2017 and 2016, respectively. |
(c) | Net reserves for claims that have been incurred but are not yet reported ("IBNR") carried in each segment were as follows: |
March 31, | March 31, | December 31, | ||||||||||
2017 | 2016 | 2016 | ||||||||||
General Insurance | $ | 2,515.3 | $ | 2,406.7 | $ | 2,431.2 | ||||||
Title Insurance | 521.5 | 516.5 | 517.5 | |||||||||
RFIG Run-off | 208.6 | 192.1 | 206.3 | |||||||||
Other | 5.0 | 4.8 | 5.4 | |||||||||
Total | $ | 3,250.6 | $ | 3,120.3 | $ | 3,160.5 |
General | Title | RFIG Run-off | Consolidated | ||||||||
Years Ended December 31: | |||||||||||
2014 | 77.9 | % | 5.2 | % | 97.2 | % | 52.3 | % | |||
2015 | 74.1 | 4.9 | 88.0 | 47.5 | |||||||
2016 | 73.0 | 3.8 | 60.4 | 44.0 | |||||||
Quarters Ended March 31: | |||||||||||
2016 | 73.0 | 5.1 | 42.2 | 46.1 | |||||||
2017 | 71.0 | % | 2.1 | % | 55.7 | % | 43.3 | % |
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: | ||||||||||||||||||||
2014 | 77.9 | % | 74.0 | % | 89.2 | % | 25.6 | % | 65.7 | % | 88.2 | % | 67.8 | % | ||||||
2015 | 74.1 | 77.8 | 80.7 | 39.1 | 57.0 | 76.8 | 60.4 | |||||||||||||
2016 | 73.0 | 79.4 | 76.1 | 45.5 | 60.9 | 77.5 | 62.2 | |||||||||||||
Quarters Ended | ||||||||||||||||||||
March 31: | ||||||||||||||||||||
2016 | 73.0 | 80.5 | 74.4 | 46.9 | 57.7 | 96.9 | 64.3 | |||||||||||||
2017 | 71.0 | % | 82.6 | % | 75.6 | % | 62.2 | % | 52.1 | % | 56.5 | % | 57.6 | % |
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: | |||||||||||||||||
2014 | $ | 45,607 | $ | 44,465 | 10.93 | % | 23.01 | % | $ | 93.5 | |||||||
2015 | 45,745 | 46,669 | 10.45 | 26.74 | 33.0 | ||||||||||||
2016 | 45,478 | 48,158 | 10.53 | 25.78 | 1.4 | ||||||||||||
Quarters Ended March 31: | |||||||||||||||||
2016 | 44,493 | 44,461 | 9.76 | 24.75 | 6.4 | ||||||||||||
2017 | $ | 48,375 | $ | 51,865 | 9.85 | % | 24.59 | % | $ | 3.0 |
(a) | Amounts are in whole dollars. |
Traditional Primary Delinquency Ratios for Top Ten States (b): | |||||||||||||||||||||||||||||
TX | FL | GA | IL | CA | NC | PA | MD | NJ | VA | ||||||||||||||||||||
As of December 31: | |||||||||||||||||||||||||||||
2014 | 7.1 | % | 17.6 | % | 8.8 | % | 12.9 | % | 7.3 | % | 8.7 | % | 12.8 | % | 15.6 | % | 25.6 | % | 8.2 | % | |||||||||
2015 | 7.7 | 13.5 | 8.4 | 10.8 | 6.1 | 8.6 | 12.2 | 13.3 | 25.0 | 8.5 | |||||||||||||||||||
2016 | 9.1 | 11.8 | 8.7 | 10.7 | 6.1 | 8.3 | 12.7 | 12.8 | 23.5 | 8.6 | |||||||||||||||||||
As of March 31: | |||||||||||||||||||||||||||||
2016 | 6.9 | 12.5 | 7.8 | 10.4 | 5.9 | 7.8 | 11.1 | 12.2 | 23.7 | 8.4 | |||||||||||||||||||
2017 | 8.1 | % | 11.1 | % | 7.8 | % | 9.8 | % | 6.2 | % | 7.6 | % | 11.9 | % | 12.2 | % | 22.2 | % | 7.7 | % |
Bulk Delinquency Ratios for Top Ten States (b): | |||||||||||||||||||||||||||||
TX | FL | GA | IL | CA | AZ | PA | OH | NJ | NY | ||||||||||||||||||||
As of December 31: | |||||||||||||||||||||||||||||
2014 | 15.9 | % | 30.0 | % | 16.5 | % | 25.0 | % | 18.1 | % | 13.3 | % | 25.8 | % | 16.0 | % | 46.5 | % | 43.4 | % | |||||||||
2015 | 19.0 | 38.9 | 17.6 | 25.7 | 26.0 | 22.4 | 26.9 | 16.3 | 59.0 | 52.1 | |||||||||||||||||||
2016 | 20.3 | 33.7 | 19.6 | 23.6 | 29.1 | 24.4 | 28.1 | 14.1 | 61.0 | 53.3 | |||||||||||||||||||
As of March 31: | |||||||||||||||||||||||||||||
2016 | 17.1 | 35.9 | 17.9 | 23.7 | 25.3 | 20.1 | 24.6 | 14.1 | 57.1 | 50.1 | |||||||||||||||||||
2017 | 19.3 | % | 30.8 | % | 21.1 | % | 21.7 | % | 28.9 | % | 25.4 | % | 23.2 | % | 13.3 | % | 60.6 | % | 49.1 | % |
Total Delinquency Ratios for Top Ten States (includes "other" business) (b): | |||||||||||||||||||||||||||||
TX | FL | GA | IL | CA | NC | PA | MD | NJ | NY | ||||||||||||||||||||
As of December 31: | |||||||||||||||||||||||||||||
2014 | 7.7 | % | 19.5 | % | 9.4 | % | 13.8 | % | 9.9 | % | 9.4 | % | 13.7 | % | 16.1 | % | 28.0 | % | 26.8 | % | |||||||||
2015 | 8.3 | 15.9 | 8.8 | 11.5 | 9.3 | 9.0 | 13.0 | 14.2 | 27.4 | 28.4 | |||||||||||||||||||
2016 | 9.8 | 13.4 | 9.1 | 11.3 | 9.3 | 8.5 | 13.5 | 13.5 | 25.6 | 27.7 | |||||||||||||||||||
As of March 31: | |||||||||||||||||||||||||||||
2016 | 7.5 | 14.6 | 8.3 | 11.1 | 9.0 | 8.2 | 11.8 | 12.8 | 26.1 | 26.7 | |||||||||||||||||||
2017 | 8.8 | % | 12.7 | % | 8.5 | % | 10.4 | % | 9.6 | % | 8.0 | % | 12.5 | % | 12.9 | % | 24.4 | % | 26.8 | % |
(b) | As determined by risk in force as of March 31, 2017, these 10 states represent approximately 51.6%, 58.0%, and 51.6%, of traditional primary, bulk, and total risk in force, respectively. |
Reported Delinquency Ratio at End of Period | Claim Rescissions and Denials | |||||||||||||||||||
CCI Claim Costs | ||||||||||||||||||||
Paid | Incurred | |||||||||||||||||||
Amount | Ratio (a) | Amount | Ratio (a) | |||||||||||||||||
Years Ended | ||||||||||||||||||||
December 31: | ||||||||||||||||||||
2014 | $ | 95.7 | 344.9 | % | $ | 137.2 | 494.4 | % | 2.1 | % | $ | 25.2 | ||||||||
2015 | 35.6 | 148.8 | 83.0 | 346.9 | 2.1 | 19.1 | ||||||||||||||
2016 | 11.7 | 74.0 | 50.0 | 315.9 | 2.0 | 10.1 | ||||||||||||||
Quarters Ended | ||||||||||||||||||||
March 31: | ||||||||||||||||||||
2016 | 3.8 | 110.4 | 9.4 | 275.3 | 2.1 | 3.2 | ||||||||||||||
2017 | $ | 2.7 | 65.1 | % | $ | 8.8 | 209.2 | % | 2.0 | % | $ | 2.0 |
(a) | Percent of net CCI earned premiums. CCI claims ratios include only those costs actually or expected to be paid by the Company and exclude claims not paid by virtue of coverage rescissions and claims denials as well as unsubstantiated claim submissions. Certain claim rescissions and denials may from time to time become the subject of disagreements between the Company and certain individual insureds. Possible future reversals of such rescissions and denials, however, may not necessarily affect the adequacy of previously established claim reserve levels nor fully impact operating results. These effects could be fully or partially negated by the imposition of additional retrospective premiums and/or the limiting effects of maximum policy limits. |
Expenses: Underwriting Acquisition and Other Expenses |
General | Title | RFIG Run-off | Consolidated | ||||||||
Years Ended December 31: | |||||||||||
2014 | 22.9 | % | 90.4 | % | 9.5 | % | 47.1 | % | |||
2015 | 23.5 | 88.3 | 10.0 | 48.5 | |||||||
2016 | 24.8 | 87.9 | 12.2 | 50.6 | |||||||
Quarters Ended March 31: | |||||||||||
2016 | 23.9 | 91.8 | 12.3 | 49.4 | |||||||
2017 | 24.9 | % | 91.5 | % | 19.2 | % | 51.4 | % |
Expenses: Total |
General | Title | RFIG Run-off | Consolidated | ||||||||
Years Ended December 31: | |||||||||||
2014 | 100.8 | % | 95.6 | % | 106.7 | % | 99.4 | % | |||
2015 | 97.6 | 93.2 | 98.0 | 96.0 | |||||||
2016 | 97.8 | 91.7 | 72.6 | 94.6 | |||||||
Quarters Ended March 31: | |||||||||||
2016 | 96.9 | 96.9 | 54.5 | 95.5 | |||||||
2017 | 95.9 | % | 93.6 | % | 74.9 | % | 94.7 | % |
Expenses: Income Taxes |
OTHER INFORMATION |
Item 3 - Quantitative and Qualitative Disclosure About Market Risk |
OLD REPUBLIC INTERNATIONAL CORPORATION |
FORM 10-Q |
PART II - OTHER INFORMATION |
31.1 | Certification by Aldo C. Zucaro, Chief Executive Officer, pursuant to Rule 13a-14(a) and 15d-14(a), as | ||
adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |||
31.2 | Certification by Karl W. Mueller, Chief Financial Officer, pursuant to Rule 13a-14(a) and 15d-14(a), as | ||
adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |||
32.1 | Certification by Aldo C. Zucaro, Chief Executive Officer, pursuant to Section 1350, Chapter 63 of Title 18, | ||
United States Code, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |||
32.2 | Certification by Karl W. Mueller, Chief Financial Officer, pursuant to Section 1350, Chapter 63 of Title 18, | ||
United States Code, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |||
101.INS | XBRL Instance 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 |
Old Republic International Corporation | |||
(Registrant) | |||
Date: | May 9, 2017 | ||
/s/ Karl W. Mueller | |||
Karl W. Mueller Senior Vice President, Chief Financial Officer, and Principal Accounting Officer |
Exhibit | |||
No. | Description | ||
31.1 | Certification by Aldo C. Zucaro, Chief Executive Officer, pursuant to Rule 13a-14(a) and 15d-14(a), as | ||
adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |||
31.2 | Certification by Karl W. Mueller, Chief Financial Officer, pursuant to Rule 13a-14(a) and 15d-14(a), as | ||
adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |||
32.1 | Certification by Aldo C. Zucaro, Chief Executive Officer, pursuant to Section 1350, Chapter 63 of Title | ||
18, United States Code, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |||
32.2 | Certification by Karl W. Mueller, Chief Financial Officer, pursuant to Section 1350, Chapter 63 of Title | ||
18, United States Code, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |||
101.INS | XBRL Instance 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 |
5. | The registrant’s other certifying officer(s) and I have disclosed, based upon our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
5. | The registrant’s other certifying officer(s) and I have disclosed, based upon our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(1) | the quarterly report on Form 10-Q of the Company for the quarter ended March 31, 2017 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and |
(2) | the information contained in the Report fairly presents the financial condition and results of operations of the Company. |
Document and Entity Information |
3 Months Ended |
---|---|
Mar. 31, 2017
shares
| |
Entity Information [Line Items] | |
Entity Registrant Name | Old Republic International Corporation |
Entity Central Index Key | 0000074260 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Large Accelerated Filer |
Document Type | 10-Q |
Document Period End Date | Mar. 31, 2017 |
Document Fiscal Year Focus | 2017 |
Document Fiscal Period Focus | Q1 |
Amendment Flag | false |
Entity Common Stock, Shares Outstanding | 263,586,666 |
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions |
Mar. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Available for sale: | ||
Fixed maturity securities (amortized costs) | $ 7,967.4 | $ 8,019.6 |
Equity securities - cost | 2,472.9 | 2,404.9 |
Held to maturity securities | ||
Fixed maturity securities (fair value) | $ 1,040.5 | $ 947.4 |
Preferred Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred Stock, authorized shares (in shares) | 75,000,000 | 75,000,000 |
Preferred Stock, outstanding shares (in shares) | 0 | 0 |
Common Stock, par value (in dollars per share) | $ 1.00 | $ 1.00 |
Common Stock, authorized shares (in shares) | 500,000,000 | 500,000,000 |
Common Stock, issued shares (in shares) | 263,586,666 | 262,719,660 |
Common Class B [Member] | ||
Held to maturity securities | ||
Common Stock, par value (in dollars per share) | $ 1.00 | $ 1.00 |
Common Stock, authorized shares (in shares) | 100,000,000 | 100,000,000 |
Common Stock, issued shares (in shares) | 0 | 0 |
Consolidated Statements of Income - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Revenues: | ||
Net premiums earned | $ 1,201.3 | $ 1,150.8 |
Title, escrow, and other fees | 99.7 | 94.8 |
Total premiums and fees | 1,301.0 | 1,245.7 |
Net investment income | 101.2 | 96.3 |
Other income | 27.6 | 27.3 |
Total operating revenues | 1,429.9 | 1,369.3 |
Realized investment gains (losses): | ||
From sales | 14.8 | 44.1 |
From impairments | 0.0 | 0.0 |
Total realized investment gains (losses) | 14.8 | 44.1 |
Total revenues | 1,444.8 | 1,413.5 |
Benefits, Claims and Expenses: | ||
Benefits, claims and settlement expenses | 559.2 | 569.8 |
Dividends to policyholders | 4.1 | 4.2 |
Underwriting, acquisition, and other expenses | 700.2 | 646.3 |
Interest and other charges | 16.4 | 10.7 |
Total expenses | 1,280.1 | 1,231.1 |
Income before income taxes (credits) | 164.7 | 182.3 |
Income Taxes (Credits): | ||
Current | 51.9 | 57.1 |
Deferred | (0.3) | 2.2 |
Total | 51.6 | 59.3 |
Net Income | $ 113.1 | $ 122.9 |
Net Income Per Share: | ||
Net income (loss) per share: Basic (in dollars per share) | $ 0.43 | $ 0.48 |
Net income (loss) per share: Diluted (in dollars per share) | $ 0.39 | $ 0.43 |
Average shares outstanding: Basic (in shares) | 260,784,905 | 258,657,939 |
Average shares outstanding: Diluted (in shares) | 298,239,349 | 295,543,808 |
Dividends Per Common Share: | ||
Cash | $ 0.1900 | $ 0.1875 |
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $ 113.1 | $ 122.9 |
Unrealized gains (losses) on securities: | ||
Unrealized gains (losses) on securities before reclassifications | 80.0 | 312.5 |
Amounts reclassified as realized investment gains from sales in the statements of income | (14.8) | (44.1) |
Pretax unrealized gains (losses) on securities | 65.2 | 268.3 |
Deferred income taxes (credits) | 22.7 | 93.8 |
Net unrealized gains (losses) on securities, net of tax | 42.5 | 174.4 |
Defined benefit pension plans: | ||
Net pension adjustment before reclassifications | 0.0 | 0.1 |
Amounts reclassified as underwriting, acquisition, and other expenses in the statements of income | 0.1 | 0.1 |
Net adjustment related to defined benefit pension plans | 0.1 | 0.2 |
Deferred income taxes (credits) | 0.0 | 0.1 |
Net adjustment related to defined benefit pension plans, net of tax | 0.0 | 0.1 |
Foreign currency translation and other adjustments | 1.5 | 6.3 |
Net adjustments | 44.1 | 180.9 |
Comprehensive Income (Loss) | $ 157.2 | $ 303.9 |
Consolidated Statements of Cash Flows - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Cash flows from operating activities: | ||
Net income | $ 113.1 | $ 122.9 |
Adjustments to reconcile net income to | ||
Deferred policy acquisition costs | (7.6) | (4.6) |
Premiums and other receivables | (70.8) | (61.7) |
Unpaid claims and related items | 24.4 | 12.6 |
Unearned premiums and other policyholders' liabilities | 50.5 | 8.3 |
Income taxes | 56.5 | 57.2 |
Prepaid federal income taxes | (31.8) | (19.1) |
Reinsurance balances and funds | 42.3 | 30.0 |
Realized investment (gains) losses | (14.8) | (44.1) |
Accounts payable, accrued expenses and other | (15.6) | 24.4 |
Total | 146.1 | 125.9 |
Available for sale | ||
Maturities and early calls | 139.8 | 250.6 |
Sales | 107.9 | 70.5 |
Sales of: | ||
Equity securities | 40.3 | 252.7 |
Other - net | 6.8 | 4.5 |
Purchases of: | ||
Available for sale | (197.6) | (323.1) |
Held to maturity | (87.3) | (157.4) |
Equity securities | (95.9) | (233.9) |
Other - net | (13.6) | (12.0) |
Net decrease (increase) in short-term investments | 27.2 | 19.2 |
Total | (72.3) | (128.8) |
Cash flows from financing activities: | ||
Proceeds from Other Debt | 0.0 | 32.4 |
Issuance of common shares | 11.1 | 1.8 |
Redemption of debentures and notes | (3.9) | (3.5) |
Dividends on common shares | (49.3) | (48.3) |
Other - net | 0.0 | (2.2) |
Total | (42.2) | (19.8) |
Increase (decrease) in cash | 31.5 | (22.7) |
Cash, beginning of period | 145.7 | 159.8 |
Cash, end of period | 177.2 | 137.1 |
Supplemental cash flow information: | ||
Cash paid (received) during the period for: Interest | 30.9 | 20.1 |
Cash paid (received) during the period for: Income taxes | $ (5.0) | $ 1.8 |
Summary of Significant Accounting Policies |
3 Months Ended |
---|---|
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Accounting Policies and Basis of Presentation | Accounting Policies and Basis of Presentation: The accompanying consolidated financial statements have been prepared in conformity with the Financial Accounting Standards Board's ("FASB") Accounting Standards Codification ("ASC") of accounting principles generally accepted in the United States of America ("GAAP"). These interim financial statements should be read in conjunction with these notes and those included in the Company's 2016 Annual Report on Form 10-K incorporated herein by reference. Pertinent accounting and disclosure pronouncements issued from time to time by the FASB are adopted by the Company as they become effective. In 2016, the Company adopted FASB guidance requiring additional disclosures about short-duration insurance contracts which provide additional information about insurance liabilities including the nature, amount, timing, and uncertainty of future cash flows related to those liabilities. The related interim disclosure requirements outlined in the guidance have been included in the pertinent note herein. Effective January 1, 2017, the company adopted new FASB guidance on accounting for share-based payment award transactions. The Company's adoption of this guidance did not have a material impact on the consolidated financial statements. In May 2014, the FASB issued a comprehensive revenue recognition standard which will be effective in 2018 and applies to all entities that have contracts with customers, except for those that fall within the scope of other standards, such as insurance contracts. In January 2016, the FASB issued guidance on the recognition and measurement of financial instruments which will be effective in 2018. Among other changes, the standard will require equity investments to be measured at fair value with changes in fair value recognized in the consolidated statement of income. In February 2016, the FASB issued guidance on lease accounting which will be effective in 2019 and requires balance sheet recognition of all leases with a term of greater than 12 months. Most recently, in June 2016, the FASB issued guidance on accounting for credit losses on financial instruments which will be effective in 2020. The guidance will require immediate recognition of expected credit losses for certain financial instruments and also modifies the impairment model for available for sale debt securities. The Company is currently evaluating the foregoing guidance to determine the potential impact of its adoption on its consolidated financial statements. The financial accounting and reporting process relies on estimates and on the exercise of judgment. In the opinion of management all adjustments consisting only of normal recurring accruals necessary for a fair presentation of the results have been recorded for the interim periods. Amounts shown in the consolidated financial statements and applicable notes are stated (except as otherwise indicated and as to share data) in millions, which amounts may not add to totals shown due to truncation. Necessary reclassifications are made in prior periods' financial statements whenever appropriate to conform to the most current presentation. |
Common Share Data |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Share Data | Common Share Data: Earnings Per Share - Consolidated basic earnings per share excludes the dilutive effect of common stock equivalents and is computed by dividing income available to common stockholders by the weighted-average number of common shares actually outstanding for the quarterly and year-to-date periods. Diluted earnings per share are similarly calculated with the inclusion of dilutive common stock equivalents. The following table provides a reconciliation of net income and the number of shares used in basic and diluted earnings per share calculations.
__________ (a) In calculating earnings per share, pertinent accounting rules require that common shares owned by the Company's Employee Savings and Stock Ownership Plan that are not yet allocated to participants in the plan be excluded from the calculation. Such shares are issued and outstanding and have the same voting and other rights applicable to all other common shares. |
Investments |
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Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments | Investments: The Company may classify its invested assets in terms of those assets relative to which it either (1) has the positive intent and ability to hold until maturity, (2) has available for sale or (3) has the intention of trading. As of March 31, 2017 and December 31, 2016, the majority of the Company's invested assets were classified as "available for sale." Fixed maturity securities and other preferred and common stocks (equity securities) classified as "available for sale" are included at fair value with changes in such values, net of deferred income taxes, reflected directly in shareholders' equity while fixed maturity securities classified as "held to maturity" are carried at amortized cost. Fair values for fixed maturity securities and equity securities are based on quoted market prices or estimates using values obtained from independent pricing services as applicable. The Company reviews the status and fair value changes of each of its investments on at least a quarterly basis during the year, and estimates of other-than-temporary impairments ("OTTI") in the portfolio's value are evaluated and established at each quarterly balance sheet date. In reviewing investments for OTTI, the Company, in addition to a security's market price history, considers the totality of such factors as the issuer's operating results, financial condition and liquidity, its ability to access capital markets, credit rating trends, most current audit opinion, industry and securities markets conditions, and analyst expectations to reach its conclusions. Sudden fair value declines caused by such adverse developments as newly emerged or imminent bankruptcy filings, issuer default on significant obligations, or reports of financial accounting developments that bring into question the validity of the issuer's previously reported earnings or financial condition, are recognized as realized losses as soon as credible publicly available information emerges to confirm such developments. Absent issuer-specific circumstances that would result in a contrary conclusion, any equity security with an unrealized investment loss amounting to a 20% or greater decline consecutively during a six month period is considered OTTI. In the event the Company's estimate of OTTI is insufficient at any point in time, future periods' net income (loss) would be adversely affected by the recognition of additional realized or impairment losses, but its financial position would not necessarily be affected adversely inasmuch as such losses, or a portion of them, could have been recognized previously as unrealized losses in shareholders' equity. The Company recognized no OTTI adjustments for the quarters ended March 31, 2017 and 2016. The amortized cost and estimated fair values by type and contractual maturity of fixed maturity securities are shown in the following tables. Expected maturities will differ from contractual maturities since borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
A summary of the Company's equity securities follows:
The following table reflects the Company's gross unrealized losses and fair value, aggregated by category and length of time that individual available for sale and held to maturity securities have been in an unrealized loss position. Fair value and issuer's cost comparisons follow:
At March 31, 2017, the Company held 660 fixed maturity and 11 equity securities in an unrealized loss position, representing 33.5% (as to fixed maturities) and 10.4% (as to equity securities) of the total number of such issues it held. At December 31, 2016, the Company held 718 fixed maturity and 8 equity securities in an unrealized loss position, representing 37.0% (as to fixed maturities) and 7.7% (as to equity securities) of the total number of such issues it held. Of the securities in an unrealized loss position, 42 and 46 fixed maturity securities and 2 and 2 equity securities, had been in a continuous unrealized loss position for more than 12 months as of March 31, 2017 and December 31, 2016, respectively. The unrealized losses on these securities are primarily deemed to reflect changes in the interest rate environment and changes in fair values of fixed income and equity securities issued by participants in the extractive industries in particular. As part of its assessment of other-than-temporary impairments, the Company considers its intent to continue to hold, and the likelihood that it will not be required to sell investment securities in an unrealized loss position until cost recovery, principally on the basis of its asset and liability maturity matching procedures. Fair Value Measurements - Fair value is defined as the estimated price that is likely to be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants (an exit price) at the measurement date. A fair value hierarchy is established that prioritizes the sources ("inputs") used to measure fair value into three broad levels: inputs based on quoted market prices in active markets (Level 1); observable inputs based on corroboration with available market data (Level 2); and unobservable inputs based on uncorroborated market data or a reporting entity's own assumptions (Level 3). Following is a description of the valuation methodologies and general classification used for financial instruments measured at fair value. The Company uses quoted values and other data provided by a nationally recognized independent pricing source as inputs into its quarterly process for determining fair values of its fixed maturity and equity securities. To validate the techniques or models used by pricing sources, the Company's review process includes, but is not limited to: (i) initial and ongoing evaluation of methodologies used by outside parties to calculate fair value; and (ii) comparing other sources including the fair value estimates to its knowledge of the current market and to independent fair value estimates provided by the investment custodian. The independent pricing source obtains market quotations and actual transaction prices for securities that have quoted prices in active markets and uses its own proprietary method for determining the fair value of securities that are not actively traded. In general, these methods involve the use of "matrix pricing" in which the independent pricing source uses observable market inputs including, but not limited to, investment yields, credit risks and spreads, benchmarking of like securities, broker-dealer quotes, reported trades and sector groupings to determine a reasonable fair value. Level 1 securities include U.S. and Canadian Treasury notes, publicly traded common stocks, the quoted net asset value ("NAV") mutual funds, and most short-term investments in highly liquid money market instruments. Level 2 securities generally include corporate bonds, municipal bonds, and certain U.S. and Canadian government agency securities. Securities classified within Level 3 include non-publicly traded bonds and equity securities. There were no significant changes in the fair value of assets measured with the use of significant unobservable inputs as of March 31, 2017 and December 31, 2016. The following tables show a summary of the fair value of financial assets segregated among the various input levels described above:
There were no transfers between Levels 1, 2 or 3 during the quarter ended March 31, 2017. Investment income is reported net of allocated expenses and includes appropriate adjustments for amortization of premium and accretion of discount on fixed maturity securities acquired at other than par value. Dividends on equity securities are credited to income on the ex-dividend date. Realized investment gains and losses, which result from sales or write-downs of securities, are reflected as revenues in the income statement and are determined on the basis of amortized value at date of sale for fixed maturity securities, and cost in regard to equity securities; such bases apply to the specific securities sold. Unrealized investment gains and losses, net of any deferred income taxes, are recorded directly as a component of accumulated other comprehensive income in shareholders' equity. At March 31, 2017, the Company and its subsidiaries had no non-income producing fixed maturity securities. The following table reflects the composition of net investment income, net realized gains or losses, and the net change in unrealized investment gains or losses for each of the periods shown.
__________
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Losses, Claims and Settlement Expenses |
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Insurance [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Losses, Claims and Settlement Expenses | Losses, Claims and Settlement Expenses: The establishment of claim reserves by the Company's insurance subsidiaries is a reasonably complex and dynamic process influenced by a large variety of factors. These factors principally include past experience applicable to the anticipated costs of various types of claims, continually evolving and changing legal theories emanating from the judicial system, recurring accounting, statistical, and actuarial studies, the professional experience and expertise of the Company's claim departments' personnel or attorneys and independent claim adjusters, ongoing changes in claim frequency or severity patterns such as those caused by natural disasters, illnesses, accidents, work‑related injuries, and changes in general and industry-specific economic conditions. Consequently, the reserves established are a reflection of the opinions of a large number of persons, of the application and interpretation of historical precedent and trends, of expectations as to future developments, and of management's judgment in interpreting all such factors. At any point in time, the Company is exposed to the risk of possibly higher or lower than anticipated claim costs due to all of these factors, and to the evolution, interpretation, and expansion of tort law, as well as the effects of unexpected jury verdicts. All reserves are therefore based on estimates which are periodically reviewed and evaluated in the light of emerging claim experience and changing circumstances. The resulting changes in estimates are recorded in operations of the periods during which they are made. Return and additional premiums and policyholders' dividends, all of which tend to be affected by development of claims in future years, may offset, in whole or in part, developed claim redundancies or deficiencies for certain coverages such as workers' compensation, portions of which are written under loss sensitive programs that provide for such adjustments. The Company believes that its overall reserving practices have been consistently applied over many years, and that its aggregate net reserves have generally resulted in reasonable approximations of the ultimate net costs of claims incurred. However, no representation is made nor is any guaranty given that ultimate net claim and related costs will not develop in future years to be greater or lower than currently established reserve estimates. The Company’s accounting policy regarding the establishment of claim reserve estimates is described in Note 1(h) to the consolidated financial statements included in Old Republic’s 2016 Annual Report on Form 10-K. The following table shows an analysis of changes in aggregate reserves for the Company's losses, claims and settlement expenses for each of the periods shown.
__________
The RFIG Run-off mortgage guaranty provision for insured events of the current year was reduced by estimated coverage rescissions and claims denials of $1.7 and $2.9 for the year-to-date periods ended March 31, 2017 and 2016, respectively. The provision for insured events of prior years for the periods shown in the table was (increased) reduced by estimated coverage rescissions and claims denials of $(1.6) and $(.4), respectively. Prior year development was also affected in varying degrees by differences between actual claim settlements relative to expected experience, by reinstatement of previously rescinded or denied claims, and by subsequent revisions of assumptions in regards to claim frequency, severity or levels of associated claim settlement costs which result from consideration of underlying trends and expectations. Changes in aggregate claim and loss adjustment expense reserves estimates are shown in the following table:
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Employee Benefit Plans |
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Mar. 31, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension Plans | Employee Benefit Plans: The Company has a pension plan (the Plan) covering a portion of its work force. The Plan is a defined benefit plan pursuant to which pension payments are based primarily on years of service and employee compensation near retirement. The Plan is closed to new participants and benefits were frozen as of December 31, 2013. As a result, eligible employees retain all of the vested rights as of the effective date of the freeze, while additional benefits no longer accrue. Plan assets are comprised principally of fixed maturity securities, common stocks and short-term investments. No cash contributions were made to the pension plan in the first quarters of 2017 or 2016. Additional cash contributions of $2.8 are expected to be made in the remaining portion of calendar year 2017. |
Information About Segments of Business |
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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.
__________
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 in 2011. 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 sister 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 administrative supervision by the North Carolina Department of Insurance ("NCDOI") 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. |
Commitments and Contingent Liabilities Commitments and Contingent Liabilities |
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Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | Commitments and Contingent Liabilities: Legal proceedings against the Company and its subsidiaries routinely arise in the normal course of business and usually pertain to claim matters related to insurance policies and contracts issued by its insurance subsidiaries. Other, non-routine legal proceedings which may prove to be material to the Company or a subsidiary are discussed below. On December 19, 2008, Old Republic Insurance Company and Republic Insured Credit Services, Inc., ("Old Republic") filed suit against Countrywide Bank FSB, Countrywide Home Loans, Inc. ("Countrywide") and Bank of New York Mellon, BNY Mellon Trust of Delaware ("BNYM") in the Circuit Court, Cook County, Illinois (Old Republic Insurance Company, et al. v. Countrywide Bank FSB, et al.) seeking rescission of various credit indemnity policies issued to insure home equity loans and home equity lines of credit which Countrywide had securitized or held for its own account, a declaratory judgment and money damages based upon systemic material misrepresentations and fraud by Countrywide as to the credit characteristics of the loans or by the borrowers in their loan applications. Countrywide filed a counterclaim alleging a breach of contract, bad faith and seeking a declaratory judgment challenging the factual and procedural bases that Old Republic had relied upon to deny or rescind coverage for individual defaulted loans under those policies, as well as unspecified compensatory and punitive damages. The Court ruled that Countrywide does not have standing to counterclaim with respect to the policies insuring the securitized loans because those policies were issued to BNYM. In response, Countrywide and BNYM jointly filed a motion asking the Court to allow an amended counterclaim in which BNYM would raise substantially similar allegations as those raised by Countrywide and make substantially similar requests but with respect to the policies issued to BNYM. The Court dismissed their motion, with leave to re-plead the counterclaim. BNYM's subsequent attempt to re-plead was granted by the Court and BNYM has re-pleaded its counterclaim. Pursuant to a revised case management order, a multi-phase trial is set to begin September 25, 2017. On December 30, 2011 and on January 4, 2013, purported class action suits alleging RESPA violations were filed in the Federal District Court, for the Eastern District of Pennsylvania targeting RMIC, other mortgage guaranty insurance companies, PNC Financial Services Group (as successor to National City Bank) and HSBC Bank USA, N.A., and their wholly-owned captive insurance subsidiaries. (White, Hightower, et al. v. PNC Financial Services Group (as successor to National City Bank) et al.), (Ba, Chip, et al. v. HSBC Bank USA, N.A., et al.). The lawsuits are two of twelve against various lenders, their captive reinsurers and the mortgage insurers, filed by the same law firms. All of these lawsuits were substantially identical in alleging that the mortgage guaranty insurers had reinsurance arrangements with the defendant banks' captive insurance subsidiaries under which payments were made in violation of the anti-kickback and fee splitting prohibitions of Sections 8(a) and 8(b) of RESPA. Ten of the twelve suits have been dismissed. A class has not been certified in either remaining suit. Those two remaining suits seeking unspecified damages, costs, fees and the return of the allegedly improper payments were settled with an agreement to make nominal payments. Ba has been dismissed with prejudice and White is awaiting the Court's dismissal. On October 9, 2014, Intellectual Ventures I LLC and Intellectual Ventures II LLC (collectively, "IV") served a complaint naming as defendants Old Republic National Title Insurance Company, Old Republic Title Insurance Group, Inc., Old Republic Insurance Company and Old Republic General Insurance Group, Inc. (collectively, "Old Republic")(Intellectual Ventures I LLC et al. v. Old Republic General Insurance Group, Inc. et al.). The lawsuit was brought in the United States District Court for the Western District of Pennsylvania. IV alleged that Old Republic has infringed three patents and sought damages, costs, expenses, and pre-judgment and post-judgment interest for the alleged infringement, in addition to injunctive relief. On October 14, 2014, Old Republic filed a motion to dismiss each count of the complaint on the grounds that the patents fail to meet the patentability test established by the United States Supreme Court in Alice Corp. Pty. Ltd. v. CLS Bank, 134 S.Ct. 2347 (2014). The District Court granted Old Republic’s motion to dismiss on all three patents on September 25, 2015. Concurrently, Old Republic filed inter partes review petitions challenging validity of the patents before the United States Patent & Trademark Office ("USPTO") in late September and early October, 2015. In late October, 2015, IV filed notice of its appeal of the District Court’s dismissal of its claims. On March 7, 2017, the United States Court of Appeal for the Federal Circuit affirmed the District Court's dismissal. Subsequently, the Patent Trial and Appeal Board ("PTAB") of the USPTO issued a series of orders finding in favor of Old Republic's challenges to the three patents. On January 20, 2015, Intellectual Ventures II LLC filed two complaints in the United States District Court for the Eastern District of Texas naming as defendants Great West Casualty Company and BITCO General Insurance Corporation and BITCO National Insurance Company. (Intellectual Ventures II LLC v. Great West Casualty Company) and (Intellectual Ventures II LLC v. BITCO General Insurance Corporation et al.) The plaintiff alleges a single patent infringement and seeks damages, costs, expenses, and pre-judgment and post-judgment interest in addition to injunctive relief. On April 9, 2015, plaintiff amended each complaint to allege a second patent infringement claim. The District Court set a trial date in September, 2016. In August and September, 2015, Great West and BITCO filed inter partes review petitions challenging the validity of claims under the patents before the PTAB. Both petitions were accepted for review. On May 11, 2016, the parties filed a stipulation of dismissal on one of the patent infringement claims in the District Court. On June 29, 2016, IV disclaimed all claims it asserted against Great West and BITCO on that patent and, accordingly, the inter partes review was terminated by the PTAB. With respect to the remaining single patent infringement claim, on May 12, 2016, the District Court issued a stay on the suit until such time as the PTAB issues its ruling on the inter partes review. On January 17, 2017, the PTAB issued its ruling, finding all but one claim under the patent to be unpatentable. IV appealed the ruling on March 20, 2017, to the United States Court of Appeal for the Federal Circuit. Further, on February 6, 2017, noting that a separate inter partes review for all claims under the patent, including the single claim remaining in the BITCO and Great West lawsuits, is ongoing between IV and another party, the District Court extended the stay until January 20, 2018. On July 5, 2016, Ocwen Loan Servicing, LLC and Homeward Residential, Inc. (collectively, "Ocwen") filed an amendment to an initial complaint against Republic Mortgage Insurance Company and Republic Mortgage Insurance Company of North Carolina (collectively, "RMIC"). The suit, which is captioned Ocwen et al. v. RMIC et al., is pending in the General Court of Justice, Superior Court Division for Forsyth County, North Carolina. The amendment for the first time identifies specific mortgage insurance certificates as to which Ocwen alleges breaches of contract, bad faith and violations of certain fair claims settlement practices laws and seeks declaratory relief in regard to certain claims handling practices on future claims. RMIC believes the suit is without merit and intends to defend vigorously. Under GAAP, an estimated loss is accrued only if the loss is probable and reasonably estimable. The Company and its subsidiaries have defended and intend to continue defending vigorously against each of the aforementioned actions. The Company does not believe it probable that any of these actions will have a material adverse effect on its consolidated financial position, results of operations, or cash flows, though there can be no assurance in those regards. The Company has made an estimate of its potential liability under certain of these lawsuits and the counterclaim, all of which seek unquantified damages, attorneys' fees, and expenses. Because of the uncertainty of the ultimate outcomes of the aforementioned disputes, additional costs may arise in future periods beyond the Company's current reserves. It is also unclear what effect, if any, the run-off operations of RMIC and its limited capital will have in the actions against it. |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt: Consolidated debt of Old Republic and its subsidiaries is summarized below:
On August 26, 2016, the Company completed a public offering of $550.0 aggregate principal amount of Senior Notes. The notes bear interest at a rate of 3.875% per year and mature on August 26, 2026. On September 23, 2014, the Company completed a public offering of $400.0 aggregate principal amount of Senior Notes. The notes bear interest at a rate of 4.875% per year and mature on October 1, 2024. The Company completed a public offering of $550.0 aggregate principal amount of Convertible Senior Notes in early March, 2011. The notes bear interest at a rate of 3.75% per year, mature on March 15, 2018, and are convertible at any time prior to maturity by the holder into 64.3407 shares (subject to periodic adjustment under certain circumstances) of common stock per one thousand dollar note. The Company's 3.75% Convertible Senior Notes, 4.875% Senior Notes, and 3.875% Senior Notes ("the Notes") contain provisions defining certain events of default, among them a court ordered proceeding due to the insolvency of a Significant Subsidiary. The Notes define Significant Subsidiary in accordance with the paragraph (w) of Rule 1-02 of the SEC's Regulation S-X. The Company's flagship mortgage guaranty insurance carrier, RMIC, qualifies as a Significant Subsidiary for purposes of the Notes. If RMIC were to become statutorily impaired, its insolvency could trigger a receivership proceeding which, in turn could ultimately result in an event of default. If this were to occur, the outstanding principal of the Notes could become immediately due and payable. Management believes the Final Order by the North Carolina Department of Insurance to RMIC has precluded such an event of default from occurring in the foreseeable future. Moreover, RMIC was statutorily solvent at March 31, 2017 and management has every expectation that its solvent state is likely to prevail. RMIC is expected to be an increasingly less significant subsidiary over time as its in force business declines. Fair Value Measurements - The Company utilizes indicative market prices, which incorporate recent actual market transactions and current bid/ask quotations to estimate the fair value of outstanding debt securities that are classified within Level 2 of the fair value hierarchy as presented below. The Company uses an internally generated interest yield market matrix table, which incorporates maturity, coupon rate, credit quality, structure and current market conditions to estimate the fair value of its outstanding debt securities that are classified within Level 3. The following table shows a summary of the carrying value and fair value of financial liabilities segregated among the various input levels described in Note 3 above:
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Income Taxes |
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Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes: Tax positions taken or expected to be taken in a tax return by the Company are recognized in the financial statements when it is more likely than not that the position would be sustained upon examination by tax authorities. To the best of management's knowledge, there are no tax uncertainties that are expected to result in significant increases or decreases to unrecognized tax benefits within the next twelve month period. The Company views its income tax exposures as primarily consisting of timing differences whereby the ultimate deductibility of a taxable amount is highly certain but the timing of its deductibility is uncertain. Such differences relate principally to the timing of deductions for loss and premium reserves. As in prior examinations, the Internal Revenue Service ("IRS") could assert that claim reserve deductions were overstated thereby reducing the Company's statutory taxable income in any particular year. The Company believes that it establishes its reserves fairly and consistently at each balance sheet date, and that it would succeed in defending its tax position in these regards. Because of the impact of deferred tax accounting, the possible accelerated payment of tax to the IRS would not necessarily affect the annual effective tax rate. The Company classifies interest and penalties as income tax expense in the consolidated statement of income. The IRS has audited the Company's consolidated Federal income tax returns through year-end 2013 and no significant adjustments ultimately resulted. |
Common Share Data (Tables) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Calculation of Numerator and Denominator in Earnings Per Share | The following table provides a reconciliation of net income and the number of shares used in basic and diluted earnings per share calculations.
__________ (a) In calculating earnings per share, pertinent accounting rules require that common shares owned by the Company's Employee Savings and Stock Ownership Plan that are not yet allocated to participants in the plan be excluded from the calculation. Such shares are issued and outstanding and have the same voting and other rights applicable to all other common shares. |
Investments (Tables) |
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortized Cost and Estimated Fair Values Of Fixed Maturities | The amortized cost and estimated fair values by type and contractual maturity of fixed maturity securities are shown in the following tables. Expected maturities will differ from contractual maturities since borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
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Amortized Cost and Estimated Fair Values Of Fixed Maturities By Contractual Maturities |
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Equity Securities Reflecting Reported Cost | A summary of the Company's equity securities follows:
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Gross Unrealized Losses and Fair Value, Aggregated | The following table reflects the Company's gross unrealized losses and fair value, aggregated by category and length of time that individual available for sale and held to maturity securities have been in an unrealized loss position. Fair value and issuer's cost comparisons follow:
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Fair Value, Assets Measured on Recurring Basis | The following tables show a summary of the fair value of financial assets segregated among the various input levels described above:
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Investment Income | The following table reflects the composition of net investment income, net realized gains or losses, and the net change in unrealized investment gains or losses for each of the periods shown.
__________
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Losses, Claims and Settlement Expenses (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Changes in Aggregate Reserves for Losses, Claims and Settlement Expenses | The following table shows an analysis of changes in aggregate reserves for the Company's losses, claims and settlement expenses for each of the periods shown.
__________
The RFIG Run-off mortgage guaranty provision for insured events of the current year was reduced by estimated coverage rescissions and claims denials of $1.7 and $2.9 for the year-to-date periods ended March 31, 2017 and 2016, respectively. The provision for insured events of prior years for the periods shown in the table was (increased) reduced by estimated coverage rescissions and claims denials of $(1.6) and $(.4), respectively. Prior year development was also affected in varying degrees by differences between actual claim settlements relative to expected experience, by reinstatement of previously rescinded or denied claims, and by subsequent revisions of assumptions in regards to claim frequency, severity or levels of associated claim settlement costs which result from consideration of underlying trends and expectations. Changes in aggregate claim and loss adjustment expense reserves estimates are shown in the following table:
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Information About Segments of Business (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting | The contributions of Old Republic's insurance industry segments to consolidated totals are shown in the following table.
__________
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Debt (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Debt | Consolidated debt of Old Republic and its subsidiaries is summarized below:
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Fair Value, Debt Measured on Recurring Basis | The following table shows a summary of the carrying value and fair value of financial liabilities segregated among the various input levels described in Note 3 above:
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Common Share Data (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | ||||
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Mar. 31, 2017 |
Mar. 31, 2016 |
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Earnings Per Share [Abstract] | |||||
Net income | $ 113.1 | $ 122.9 | |||
Numerator for basic earnings per share - income (loss) available to common stockholders | 113.1 | 122.9 | |||
Adjustment for interest expense incurred on assumed conversions of convertible senior notes | 3.6 | 3.6 | |||
Numerator for diluted earnings per share - income (loss) available to common stockholders after assumed conversions | $ 116.7 | $ 126.6 | |||
Denominator for basic earnings per share - weighted-average shares (a) | [1] | 260,784,905 | 258,657,939 | ||
Effect of dilutive securities - stock based compensation awards | 1,703,231 | 1,230,909 | |||
Effect of dilutive securities - convertible senior notes | 35,751,213 | 35,654,960 | |||
Denominator for diluted earnings per shares adjusted weighted average shares and assumed conversions (a) (in shares) | [1] | 298,239,349 | 295,543,808 | ||
Net income (loss) per share: Basic (in dollars per share) | $ 0.43 | $ 0.48 | |||
Net income (loss) per share: Diluted (in dollars per share) | $ 0.39 | $ 0.43 | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Antidilutive common stock equivalents excluded from earnings per share computations | 0 | 3,765,001 | |||
Stock based compensation awards [Member] | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Antidilutive common stock equivalents excluded from earnings per share computations | 0 | 3,765,001 | |||
Convertible senior notes [Member] | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Antidilutive common stock equivalents excluded from earnings per share computations | 0 | 0 | |||
|
Investments Fixed Maturity Securities by Type (Details) - USD ($) $ in Millions |
Mar. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Schedule of Available-for-sale and Held-to-maturity Securities [Table] [Line Items] | ||
Available for sale, Fixed maturity securities (amortized cost) | $ 7,967.4 | $ 8,019.6 |
Available for sale, Fixed maturity securities (estimated fair value) | 8,135.8 | 8,170.9 |
Held to maturity (amortized cost) | 1,056.9 | 974.8 |
Held to maturity (estimated fair value) | 1,040.5 | 947.4 |
U.S. & Canadian Governments [Member] | ||
Schedule of Available-for-sale and Held-to-maturity Securities [Table] [Line Items] | ||
Available for sale, Fixed maturity securities (amortized cost) | 1,444.5 | 1,419.7 |
Available for sale, Fixed maturity securities (gross unrealized gains) | 12.2 | 12.6 |
Available for sale, Fixed maturity securities (gross unrealized losses) | 3.9 | 5.5 |
Available for sale, Fixed maturity securities (estimated fair value) | 1,452.8 | 1,426.8 |
Tax-exempt [Member] | ||
Schedule of Available-for-sale and Held-to-maturity Securities [Table] [Line Items] | ||
Held to maturity (amortized cost) | 1,056.9 | 974.8 |
Held to maturity (gross unrealized gains) | 3.3 | 0.7 |
Held to maturity (gross unrealized losses) | 19.7 | 28.0 |
Held to maturity (estimated fair value) | 1,040.5 | 947.4 |
Corporate [Member] | ||
Schedule of Available-for-sale and Held-to-maturity Securities [Table] [Line Items] | ||
Available for sale, Fixed maturity securities (amortized cost) | 6,522.8 | 6,599.8 |
Available for sale, Fixed maturity securities (gross unrealized gains) | 182.3 | 175.0 |
Available for sale, Fixed maturity securities (gross unrealized losses) | 22.2 | 30.7 |
Available for sale, Fixed maturity securities (estimated fair value) | 6,682.9 | 6,744.1 |
Fixed Maturity Securities [Member] | ||
Schedule of Available-for-sale and Held-to-maturity Securities [Table] [Line Items] | ||
Available for sale, Fixed maturity securities (amortized cost) | 7,967.4 | 8,019.6 |
Available for sale, Fixed maturity securities (gross unrealized gains) | 194.5 | 187.6 |
Available for sale, Fixed maturity securities (gross unrealized losses) | 26.1 | 36.3 |
Available for sale, Fixed maturity securities (estimated fair value) | $ 8,135.8 | $ 8,170.9 |
Investments Fair Value (Details) - USD ($) $ in Millions |
Mar. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity (amortized cost) | $ 1,056.9 | $ 974.8 |
Available for sale, Fixed maturity securities | 8,135.8 | 8,170.9 |
Available-for-sale, equity securities | 3,012.2 | 2,896.1 |
Short-term investments | 654.1 | 681.6 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 654.1 | 681.6 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0.0 | 0.0 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0.0 | 0.0 |
Estimate of Fair Value, Fair Value Disclosure [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 654.1 | 681.6 |
U.S. & Canadian Governments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, Fixed maturity securities | 1,452.8 | 1,426.8 |
U.S. & Canadian Governments [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, Fixed maturity securities | 774.3 | 772.1 |
U.S. & Canadian Governments [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, Fixed maturity securities | 678.5 | 654.7 |
U.S. & Canadian Governments [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, Fixed maturity securities | 0.0 | 0.0 |
U.S. & Canadian Governments [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, Fixed maturity securities | 1,452.8 | 1,426.8 |
Tax-exempt [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity (amortized cost) | 1,056.9 | 974.8 |
Tax-exempt [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity (amortized cost) | 0.0 | 0.0 |
Tax-exempt [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity (amortized cost) | 1,040.5 | 947.4 |
Tax-exempt [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity (amortized cost) | 0.0 | 0.0 |
Tax-exempt [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity (amortized cost) | 1,040.5 | 947.4 |
Corporate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, Fixed maturity securities | 6,682.9 | 6,744.1 |
Corporate [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, Fixed maturity securities | 0.0 | 0.0 |
Corporate [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, Fixed maturity securities | 6,672.4 | 6,733.6 |
Corporate [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, Fixed maturity securities | 10.5 | 10.5 |
Corporate [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, Fixed maturity securities | 6,682.9 | 6,744.1 |
Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, equity securities | 3,012.2 | 2,896.1 |
Equity Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, equity securities | 3,011.1 | 2,895.2 |
Equity Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, equity securities | 0.0 | 0.0 |
Equity Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, equity securities | 1.0 | 0.9 |
Equity Securities [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale, equity securities | $ 3,012.2 | $ 2,896.1 |
Investments Net Investment Income (Details) - USD ($) $ in Millions |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|||
Gain (Loss) on Investments [Line Items] | ||||
Gross investment income | $ 102.4 | $ 97.2 | ||
Investment expenses | [1] | 1.1 | 0.9 | |
Net investment income | 101.2 | 96.3 | ||
Net realized gains (losses) | 9.6 | 28.7 | ||
Total realized gains (losses) | 14.8 | 44.1 | ||
Income taxes (credits) | 5.1 | 15.4 | ||
Interest expense incurred on funds held | 0.1 | 0.0 | ||
Unrealized Gain (Loss) on Investments | 42.5 | 174.4 | ||
Equity Securities [Member] | ||||
Gain (Loss) on Investments [Line Items] | ||||
Equity securities, gross realized gains | 12.1 | 65.6 | ||
Equity securities, gross realized losses | 0.0 | (23.8) | ||
Equity securities, net realized gains (losses) | 12.1 | 41.8 | ||
Fixed Maturity Securities [Member] | ||||
Gain (Loss) on Investments [Line Items] | ||||
Fixed maturity securities, gross realized gains | 2.8 | 2.4 | ||
Fixed maturity securities, gross realized losses | (0.1) | (0.1) | ||
Net realized gains (losses) | 2.6 | 2.2 | ||
Changes in unrealized investment gains (losses) on, fixed maturity securities | 17.0 | 147.6 | ||
Less: Deferred income taxes (credits) | 5.9 | 51.6 | ||
Net changes in unrealized investment gains (losses) | 11.1 | 96.0 | ||
Equity securities & other long-term investments [Member] | ||||
Gain (Loss) on Investments [Line Items] | ||||
Changes in unrealized investment gains (losses) on, fixed maturity securities | 48.1 | 120.6 | ||
Less: Deferred income taxes (credits) | 16.7 | 42.2 | ||
Net changes in unrealized investment gains (losses) | 31.3 | 78.4 | ||
Other Investments | ||||
Gain (Loss) on Investments [Line Items] | ||||
Other long-term investments, net | 0.0 | 0.0 | ||
Fixed Maturity Securities [Member] | ||||
Gain (Loss) on Investments [Line Items] | ||||
Gross investment income | 74.2 | 75.1 | ||
Equity Securities [Member] | ||||
Gain (Loss) on Investments [Line Items] | ||||
Gross investment income | 26.1 | 20.9 | ||
Short-term Investments [Member] | ||||
Gain (Loss) on Investments [Line Items] | ||||
Gross investment income | 0.8 | 0.5 | ||
Investments [Member] | ||||
Gain (Loss) on Investments [Line Items] | ||||
Gross investment income | $ 1.2 | $ 0.6 | ||
|
Investments Textuals (Details) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2017
USD ($)
|
Mar. 31, 2016
USD ($)
|
Dec. 31, 2016 |
|
Schedule of Available-for-sale Securities [Line Items] | |||
Other-than-temporary impairments, minimum percentage decline | 20.00% | ||
Realized investment gains losses from impairment | $ 0.0 | $ 0.0 | |
Interest expense incurred on funds held | $ 0.1 | $ 0.0 | |
Fixed Maturity Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Securities in unrealized loss positions, number of securities | 660 | 718 | |
Percentage of securities in unrealized loss position | 33.50% | 37.00% | |
Number of securities in continuous unrealized loss position for more than 12 months | 42 | 46 | |
Equity Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Securities in unrealized loss positions, number of positions | 11 | 8 | |
Percentage of securities in unrealized loss position | 10.40% | 7.70% | |
Number of securities in continuous unrealized loss position for more than 12 months | 2 | 2 |
Investments Fixed Maturity Securities Stratified by Contractual Maturity (Details) - USD ($) $ in Millions |
Mar. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Investments [Abstract] | ||
Available for sale, Due in one year or less (amortized cost) | $ 1,010.3 | |
Available for sale, Due after one year through five years (amortized cost) | 3,898.8 | |
Available for sale, Due after five years through ten years (amortized cost) | 2,933.5 | |
Available for sale, Due after ten years (amortized cost) | 124.7 | |
Available for sale, Fixed maturity securities (amortized cost) | 7,967.4 | $ 8,019.6 |
Available for sale, Due in one year or less (estimated fair value) | 1,017.8 | |
Available for sale, Due after one year through five years (estimated fair value) | 4,010.9 | |
Available for sale, Due after five years through ten years (estimated fair value) | 2,977.1 | |
Available for sale, Due after ten years (estimated fair value) | 129.8 | |
Available for sale, Fixed maturity securities (estimated fair value) | 8,135.8 | 8,170.9 |
Held to maturity, Due within one year or less (amortized cost) | 0.0 | |
Held to maturity, Due after one year through five years (amortized cost) | 41.8 | |
Held to maturity, Due after five years through then years (amortized cost) | 993.3 | |
Held to maturity, Due after ten years (amortized cost) | 21.7 | |
Held to maturity (amortized cost) | 1,056.9 | 974.8 |
Held to maturity, Due in one year or less (estimated fair value) | 0.0 | |
Held to maturity, Due after one year through five years (estimated fair value) | 41.2 | |
Held to maturity, Due after five years through ten years (estimated fair value) | 977.7 | |
Held to maturity, Due after ten years (estimated fair value) | 21.6 | |
Held to maturity (estimated fair value) | $ 1,040.5 | $ 947.4 |
Investments Gross Unrealized Losses and Fair Value (Details) $ in Millions |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2017
USD ($)
|
Dec. 31, 2016
USD ($)
|
|
Schedule of Available-for-sale and Held-to-maturity Securities [Table] [Line Items] | ||
Available for sale, Fair Value, 12 Months or Less | $ 2,789.1 | $ 2,846.7 |
Available for sale, Unrealized Losses, 12 Months or Less | 46.7 | 66.5 |
Available for sale, Fair Value, Greater than 12 Months | 322.0 | 369.7 |
Available for sale, Unrealized Losses, Greater than 12 Months | 26.7 | 22.8 |
Available for sale, Fair Value, Total | 3,111.2 | 3,216.5 |
Available for sale, Unrealized Losses, Total | 73.5 | 89.4 |
U.S. & Canadian Governments [Member] | ||
Schedule of Available-for-sale and Held-to-maturity Securities [Table] [Line Items] | ||
Available for sale, Fair Value, 12 Months or Less | 702.7 | 699.0 |
Available for sale, Unrealized Losses, 12 Months or Less | 3.8 | 5.5 |
Available for sale, Fair Value, Greater than 12 Months | 0.9 | 1.3 |
Available for sale, Unrealized Losses, Greater than 12 Months | 0.0 | 0.0 |
Available for sale, Fair Value, Total | 703.6 | 700.4 |
Available for sale, Unrealized Losses, Total | 3.9 | 5.5 |
Tax-exempt [Member] | ||
Schedule of Available-for-sale and Held-to-maturity Securities [Table] [Line Items] | ||
Held to maturity, Fair Value, 12 Months or Less | 719.8 | 814.4 |
Held to maturity, Unrealized Losses, 12 Months or Less | 19.7 | 28.0 |
Held to maturity, Fair Value, Greater than 12 Months | 0.0 | 0.0 |
Held to maturity, Unrealized Losses, Greater than 12 Months | 0.0 | 0.0 |
Held to maturity, Fair Value, Total | 719.8 | 814.4 |
Held to maturity, Unrealized Losses, Total | 19.7 | 28.0 |
Corporate [Member] | ||
Schedule of Available-for-sale and Held-to-maturity Securities [Table] [Line Items] | ||
Available for sale, Fair Value, 12 Months or Less | 1,078.0 | 1,250.5 |
Available for sale, Unrealized Losses, 12 Months or Less | 14.8 | 20.3 |
Available for sale, Fair Value, Greater than 12 Months | 197.7 | 246.2 |
Available for sale, Unrealized Losses, Greater than 12 Months | 7.4 | 10.3 |
Available for sale, Fair Value, Total | 1,275.8 | 1,496.8 |
Available for sale, Unrealized Losses, Total | $ 22.2 | $ 30.7 |
Fixed Maturity Securities [Member] | ||
Schedule of Available-for-sale and Held-to-maturity Securities [Table] [Line Items] | ||
Number of securities in continuous unrealized loss position for more than 12 months | 42 | 46 |
Available for sale and Held to maturity, Fair Value, 12 Months or Less | $ 2,500.6 | $ 2,764.0 |
Available for sale and Held to maturity, Unrealized Losses, 12 Months or Less | 38.4 | 53.9 |
Available for sale and Held to maturity, Fair Value, Greater than 12 Months | 198.7 | 247.5 |
Available for sale and Held to maturity, Unrealized Losses, Greater than 12 Months | 7.4 | 10.4 |
Available for sale and Held to maturity, Fair Value, Total | 2,699.4 | 3,011.6 |
Available for sale and Held to maturity, Unrealized Losses, Total | $ 45.9 | $ 64.3 |
Equity Securities [Member] | ||
Schedule of Available-for-sale and Held-to-maturity Securities [Table] [Line Items] | ||
Number of securities in continuous unrealized loss position for more than 12 months | 2 | 2 |
Available for sale, Fair Value, 12 Months or Less | $ 288.5 | $ 82.6 |
Available for sale, Unrealized Losses, 12 Months or Less | 8.3 | 12.5 |
Available for sale, Fair Value, Greater than 12 Months | 123.2 | 122.1 |
Available for sale, Unrealized Losses, Greater than 12 Months | 19.3 | 12.4 |
Available for sale, Fair Value, Total | 411.8 | 204.8 |
Available for sale, Unrealized Losses, Total | $ 27.6 | $ 25.0 |
Investments Equity Securities (Details) - USD ($) $ in Millions |
Mar. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Schedule of Available-for-sale Securities [Line Items] | ||
Equity securities - cost | $ 2,472.9 | $ 2,404.9 |
Available-for-sale Securities, Equity Securities | 3,012.2 | 2,896.1 |
Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Equity securities - cost | 2,472.9 | 2,404.9 |
Equity securities, gross unrealized gains | 566.8 | 516.2 |
Equity securities, gross unrealized losses | 27.6 | 25.0 |
Available-for-sale Securities, Equity Securities | $ 3,012.2 | $ 2,896.1 |
Losses, Claims and Settlement Expenses (Details) - USD ($) $ in Millions |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Liability for Unpaid Claims and Claims Adjustment Expense | ||||
Gross reserves at beginning of period | $ 9,206.0 | $ 9,120.2 | ||
Net reserves at beginning of period | $ 6,439.8 | $ 6,387.6 | ||
Provisions for insured events of the current year | 574.6 | 589.7 | ||
Change in provision for insured events of prior years | (15.1) | (19.4) | ||
Total incurred claims and claim adjustment expenses | 559.5 | 570.3 | ||
Claims and claim adjustment expenses attributable to insured events of the current year | 97.1 | 96.3 | ||
Claims and claim adjustment expenses attributable to insured events of prior years | 437.8 | 461.1 | ||
Total payments | 535.0 | 557.5 | ||
Amount of reserves for unpaid claims and claim adjustment expenses at the end of each period, net of reinsurance losses recoverable | 6,464.3 | 6,400.4 | ||
Gross reserves at end of period | 9,231.3 | 9,067.5 | ||
Net reserve increase (decrease) | 24.4 | 12.7 | ||
Net reserves for claims that have been incurred but are not yet reported | 3,250.6 | 3,120.3 | 3,160.5 | |
Reinsurance losses recoverable | ||||
Supplementary Insurance Information, by Segment [Line Items] | ||||
Reinsurance Recoverable for Unpaid Claims and Claims Adjustments | 2,766.1 | 2,732.5 | ||
Liability for Unpaid Claims and Claims Adjustment Expense | ||||
Less: reinsurance losses recoverable | 2,766.9 | 2,667.1 | ||
General Insurance | ||||
Liability for Unpaid Claims and Claims Adjustment Expense | ||||
Net reserves at beginning of period | 5,249.9 | 5,053.1 | ||
Provisions for insured events of the current year | 513.3 | 518.7 | ||
Change in provision for insured events of prior years | 10.1 | 1.9 | ||
Claims and claim adjustment expenses attributable to insured events of the current year | 94.1 | 93.5 | ||
Claims and claim adjustment expenses attributable to insured events of prior years | 367.5 | 379.3 | ||
Amount of reserves for unpaid claims and claim adjustment expenses at the end of each period, net of reinsurance losses recoverable | 5,311.7 | 5,100.8 | ||
Net reserve increase (decrease) | 61.8 | 47.7 | ||
Net reserves for claims that have been incurred but are not yet reported | 2,515.3 | 2,406.7 | 2,431.2 | |
Title Insurance | ||||
Liability for Unpaid Claims and Claims Adjustment Expense | ||||
Net reserves at beginning of period | 602.0 | 580.8 | ||
Provisions for insured events of the current year | 21.3 | 24.4 | ||
Change in provision for insured events of prior years | (10.3) | 0.0 | ||
Claims and claim adjustment expenses attributable to insured events of the current year | 0.2 | 0.1 | ||
Claims and claim adjustment expenses attributable to insured events of prior years | 14.7 | 17.4 | ||
Amount of reserves for unpaid claims and claim adjustment expenses at the end of each period, net of reinsurance losses recoverable | 598.1 | 587.6 | ||
Net reserve increase (decrease) | (3.9) | 6.8 | ||
Net reserves for claims that have been incurred but are not yet reported | 521.5 | 516.5 | 517.5 | |
RFIG Run-off | ||||
Liability for Unpaid Claims and Claims Adjustment Expense | ||||
Net reserves at beginning of period | 574.0 | 736.7 | ||
Provisions for insured events of the current year | 32.8 | 40.6 | ||
Change in provision for insured events of prior years | (13.0) | (20.4) | ||
Claims and claim adjustment expenses attributable to insured events of the current year | 0.2 | 0.0 | ||
Claims and claim adjustment expenses attributable to insured events of prior years | 53.4 | 59.4 | ||
Amount of reserves for unpaid claims and claim adjustment expenses at the end of each period, net of reinsurance losses recoverable | 540.2 | 697.3 | ||
Current year estimated coverage rescissions and claims denials | 1.7 | 2.9 | ||
Prior period estimated coverage rescissions and claims denials | (1.6) | (0.4) | ||
Net reserve increase (decrease) | (33.7) | (39.3) | ||
Estimated reduction in paid losses from rescissions | (3.0) | (6.4) | ||
Net reserves for claims that have been incurred but are not yet reported | 208.6 | 192.1 | 206.3 | |
Other | ||||
Liability for Unpaid Claims and Claims Adjustment Expense | ||||
Net reserves at beginning of period | 13.8 | $ 16.9 | ||
Provisions for insured events of the current year | 7.0 | 6.0 | ||
Change in provision for insured events of prior years | (1.8) | (0.9) | ||
Claims and claim adjustment expenses attributable to insured events of the current year | 2.5 | 2.5 | ||
Claims and claim adjustment expenses attributable to insured events of prior years | 2.2 | 4.9 | ||
Amount of reserves for unpaid claims and claim adjustment expenses at the end of each period, net of reinsurance losses recoverable | 14.2 | 14.5 | ||
Net reserve increase (decrease) | 0.3 | (2.3) | ||
Net reserves for claims that have been incurred but are not yet reported | $ 5.0 | $ 4.8 | $ 5.4 |
Pension Plans (Details) $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2017
USD ($)
| |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Defined benefit plan, estimated future employer contributions in current fiscal year | $ 2.8 |
Contributions by employer | $ 0.0 |
Information About Segments of Business (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
Sep. 30, 2014 |
||||||
Consolidated Revenues [Abstract] | ||||||||
Consolidated revenues | $ 1,444.8 | $ 1,413.5 | ||||||
Net premiums earned | 1,201.3 | 1,150.8 | ||||||
Title, escrow and other fees | 99.7 | 94.8 | ||||||
Total premiums and fees | 1,301.0 | 1,245.7 | ||||||
Consolidated net realized investment gains (losses) | 14.8 | 44.1 | ||||||
Total operating revenues | 1,429.9 | 1,369.3 | ||||||
Consolidated Income (Loss) Before Taxes (Credits) [Abstract] | ||||||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest | 164.7 | 182.3 | ||||||
Consolidated net realized investment gains (losses) | 14.8 | 44.1 | ||||||
Consolidated Income Tax Expense (Credits) [Abstract] | ||||||||
Income tax expense (credits) | 51.6 | 59.3 | ||||||
Income tax expense (credits) on consolidated net realized investment gains (losses) | 5.1 | 15.4 | ||||||
Total Company Segments [Member] | ||||||||
Consolidated Revenues [Abstract] | ||||||||
Consolidated revenues | 1,418.0 | 1,362.0 | ||||||
Consolidated Income (Loss) Before Taxes (Credits) [Abstract] | ||||||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest | 148.7 | 136.2 | ||||||
Consolidated Income Tax Expense (Credits) [Abstract] | ||||||||
Income tax expense (credits) | 47.1 | 44.0 | ||||||
General Insurance Group [Member] | ||||||||
Consolidated Revenues [Abstract] | ||||||||
Net premiums earned | 742.8 | 718.9 | ||||||
Net investment income and other income | 106.2 | 105.7 | ||||||
Income (loss) before income taxes (credits) and realized investment gains or losses | [1] | 93.7 | 87.0 | |||||
Total operating revenues | 849.0 | 824.6 | ||||||
Consolidated Income Tax Expense (Credits) [Abstract] | ||||||||
Income tax expense (credits) | 28.0 | 26.8 | ||||||
Interest charges on intercompany financing arrangements | 14.1 | 12.1 | ||||||
Title Insurance Segment [Member] | ||||||||
Consolidated Revenues [Abstract] | ||||||||
Net premiums earned | 418.3 | 379.3 | ||||||
Title, escrow and other fees | 99.7 | 94.8 | ||||||
Total premiums and fees | 518.0 | 474.1 | ||||||
Net investment income and other income | 9.7 | 9.4 | ||||||
Income (loss) before income taxes (credits) and realized investment gains or losses | [1] | 40.4 | 21.4 | |||||
Total operating revenues | 527.8 | 483.6 | ||||||
Consolidated Income Tax Expense (Credits) [Abstract] | ||||||||
Income tax expense (credits) | 13.8 | 7.5 | ||||||
Interest charges on intercompany financing arrangements | 2.1 | 2.1 | ||||||
RFIG Run-off Business [Member] | ||||||||
Segment Reporting Information | ||||||||
Deferred Payment Obligation | $ 657.0 | |||||||
Consolidated Revenues [Abstract] | ||||||||
Net premiums earned | 35.5 | 47.8 | ||||||
Net investment income and other income | 5.5 | 5.9 | ||||||
Income (loss) before income taxes (credits) and realized investment gains or losses | 14.5 | 27.7 | ||||||
Total operating revenues | 41.1 | 53.7 | ||||||
Consolidated Income Tax Expense (Credits) [Abstract] | ||||||||
Income tax expense (credits) | 5.2 | 9.6 | ||||||
Other sources - net [Member] | ||||||||
Consolidated Revenues [Abstract] | ||||||||
Consolidated revenues | [2] | 41.9 | 28.3 | |||||
Consolidated Income (Loss) Before Taxes (Credits) [Abstract] | ||||||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest | [2] | 1.1 | 1.9 | |||||
Consolidated Income Tax Expense (Credits) [Abstract] | ||||||||
Income tax expense (credits) | [2] | (0.7) | (0.1) | |||||
Consolidation elimination adjustments [Member] | ||||||||
Consolidated Revenues [Abstract] | ||||||||
Consolidated revenues | $ (29.9) | $ (21.0) | ||||||
|
Information About Segments of Business Textuals (Details) $ in Millions |
3 Months Ended | 9 Months Ended | |
---|---|---|---|
Mar. 31, 2017
USD ($)
segment
|
Mar. 31, 2016
USD ($)
|
Sep. 30, 2014
USD ($)
|
|
Segment Reporting Information | |||
Number of Jurisdictions | 16 | ||
Number of major segments | segment | 3 | ||
General Insurance Group [Member] | |||
Segment Reporting Information | |||
Interest charges on intercompany financing arrangements | $ 14.1 | $ 12.1 | |
Title Insurance Segment [Member] | |||
Segment Reporting Information | |||
Interest charges on intercompany financing arrangements | $ 2.1 | $ 2.1 | |
RFIG Run-off Business [Member] | |||
Segment Reporting Information | |||
Risk to capital ratio | 25 | ||
Revised deferred payment obligation percentage | 40.00% | ||
Percentage of deferred payment obligation to be paid | 100.00% | ||
Payment to subsidiary in anticipation of deferred payment obligation | $ 125.0 | ||
Deferred Payment Obligation | $ 657.0 |
Information About Segments of Business Reconciliation of Assets from Segment to Consolidated (Details) - USD ($) $ in Millions |
Mar. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Segment Reporting, Asset Reconciling Item | ||
Assets | $ 18,905.4 | $ 18,591.6 |
General Insurance Group [Member] | ||
Segment Reporting, Asset Reconciling Item | ||
Assets | 15,546.1 | 15,305.7 |
Title Insurance Segment [Member] | ||
Segment Reporting, Asset Reconciling Item | ||
Assets | 1,438.9 | 1,423.0 |
RFIG Run-off Business [Member] | ||
Segment Reporting, Asset Reconciling Item | ||
Assets | 887.7 | 904.8 |
Total Company Segments [Member] | ||
Segment Reporting, Asset Reconciling Item | ||
Assets | 17,872.8 | 17,633.6 |
All Other Segments [Member] | ||
Segment Reporting, Asset Reconciling Item | ||
Assets | 1,353.1 | 1,301.8 |
Intersegment Elimination [Member] | ||
Segment Reporting, Asset Reconciling Item | ||
Assets | $ (320.5) | $ (343.9) |
Debt (Details) |
3 Months Ended | |
---|---|---|
Mar. 31, 2017
USD ($)
|
Dec. 31, 2016
USD ($)
|
|
Debt Instrument [Line Items] | ||
Fair value | $ 1,741,300,000 | $ 1,679,700,000 |
Debt and Capital Lease Obligations | 1,525,500,000 | 1,528,700,000 |
Face amount of note convertible into common shares | 1,000 | |
Convertible Senior Notes Due 2018 | ||
Debt Instrument [Line Items] | ||
Debt | 550,000,000 | 550,000,000 |
Fair value | 735,500,000 | 689,500,000 |
Debt and Capital Lease Obligations | $ 548,200,000 | 547,800,000 |
Debt Instrument, Interest Rate, Stated Percentage | 3.75% | |
Number of common shares into which notes are convertible (in shares per one thousand dollar note) | 64.3407 | |
Senior Notes Due 2024 | ||
Debt Instrument [Line Items] | ||
Debt | $ 400,000,000 | 400,000,000 |
Fair value | 426,600,000 | 417,400,000 |
Debt and Capital Lease Obligations | $ 395,800,000 | 395,600,000 |
Debt Instrument, Interest Rate, Stated Percentage | 4.875% | |
Senior Notes Due 2026 [Member] | ||
Debt Instrument [Line Items] | ||
Debt | $ 550,000,000 | 550,000,000 |
Fair value | 542,400,000 | 531,900,000 |
Debt and Capital Lease Obligations | $ 544,700,000 | 544,600,000 |
Debt Instrument, Interest Rate, Stated Percentage | 3.875% | |
ESSOP Debt | ||
Debt Instrument [Line Items] | ||
Fair value | $ 4,200,000 | 8,100,000 |
Debt and Capital Lease Obligations | $ 4,200,000 | $ 8,100,000 |
Debt, Weighted Average Interest Rate | 4.28% | 3.98% |
Debt [Member] | ||
Debt Instrument [Line Items] | ||
Fair value | $ 32,500,000 | $ 32,500,000 |
Debt and Capital Lease Obligations | $ 32,400,000 | $ 32,400,000 |
Debt, Weighted Average Interest Rate | 2.20% | 1.90% |
Debt Financial Liabilities Disclosed, but not Carried, at Fair Value (Details) - USD ($) $ in Millions |
Mar. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt | $ 1,525.5 | $ 1,528.7 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt | 0.0 | 0.0 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt | 1,704.6 | 1,639.0 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt | 36.7 | 40.6 |
Estimate of Fair Value, Fair Value Disclosure [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt | $ 1,741.3 | $ 1,679.7 |
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