UNITED STATES | |
SECURITIES AND EXCHANGE COMMISSION | |
Washington, D. C. 20549 | |
FORM |
Quarterly report pursuant to section 13 or 15(d) of the Security Exchange Act of 1934 | ||
for the quarterly period ended: | ||
or | ||
Transition report pursuant to section 13 or 15(d) of the Security Exchange Act of 1934 |
Commission File Number: |
(Exact name of registrant as specified in its charter) |
(State or other jurisdiction of | (IRS Employer Identification No.) | |
incorporation or organization) |
(Address of principal executive office) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
☒ | Accelerated filer | ☐ | |
Non-accelerated filer | ☐ | Smaller reporting company | |
Emerging growth company |
OLD REPUBLIC INTERNATIONAL CORPORATION | ||
Report on Form 10-Q / September 30, 2019 | ||
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 PREFERRED STOCK AND COMMON | ||
SHAREHOLDERS' EQUITY | 6 | |
CONSOLIDATED STATEMENTS OF CASH FLOWS | 7 | |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | 8 - 19 | |
MANAGEMENT ANALYSIS OF FINANCIAL POSITION AND RESULTS OF OPERATIONS | 20 - 48 | |
QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK | 49 | |
CONTROLS AND PROCEDURES | 49 | |
PART II | OTHER INFORMATION: | |
ITEM 1 - LEGAL PROCEEDINGS | 50 | |
ITEM 1A - RISK FACTORS | 50 | |
ITEM 6 - EXHIBITS | 50 | |
SIGNATURE | 51 | |
EXHIBIT INDEX | 52 |
Old Republic International Corporation and Subsidiaries | |||||||
Consolidated Balance Sheets | |||||||
($ in Millions, Except Share Data) | |||||||
(Unaudited) | |||||||
September 30, | December 31, | ||||||
2019 | 2018 | ||||||
Assets | |||||||
Investments: | |||||||
Available for sale: | |||||||
Fixed maturity securities (at fair value) (amortized cost: $8,394.0 and $8,285.0) | $ | $ | |||||
Short-term investments (at fair value which approximates cost) | |||||||
Total | |||||||
Held to maturity: | |||||||
Fixed maturity securities (at amortized cost) (fair value: $1,060.2 and $1,034.5) | |||||||
Equity securities (at fair value) (cost: $2,989.4 and $3,039.1) | |||||||
Other investments | |||||||
Total investments | |||||||
Other Assets: | |||||||
Cash | |||||||
Accrued investment income | |||||||
Accounts and notes receivable | |||||||
Federal income tax recoverable: Current | |||||||
Prepaid federal income taxes | |||||||
Reinsurance balances and funds held | |||||||
Reinsurance recoverable: Paid losses | |||||||
Policy and claim reserves | |||||||
Deferred policy acquisition costs | |||||||
Sundry assets | |||||||
Total Other Assets | |||||||
Total Assets | $ | $ | |||||
Liabilities, Preferred Stock, and Common Shareholders' Equity | |||||||
Liabilities: | |||||||
Losses, claims, and settlement expenses | $ | $ | |||||
Unearned premiums | |||||||
Other policyholders' benefits and funds | |||||||
Total policy liabilities and accruals | |||||||
Commissions, expenses, fees, and taxes | |||||||
Reinsurance balances and funds | |||||||
Federal income tax payable: Deferred | |||||||
Debt | |||||||
Sundry liabilities | |||||||
Commitments and contingent liabilities | |||||||
Total Liabilities | |||||||
Preferred Stock (1) | |||||||
Common Shareholders' Equity: | |||||||
Common stock (1) | |||||||
Additional paid-in capital | |||||||
Retained earnings | |||||||
Accumulated other comprehensive income (loss) | ( | ) | |||||
Unallocated ESSOP shares (at cost) | ( | ) | ( | ) | |||
Total Common Shareholders' Equity | |||||||
Total Liabilities, Preferred Stock and Common Shareholders' Equity | $ | $ |
(1) | At September 30, 2019 and December 31, 2018, 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 303,570,106 and 302,714,502 were issued as of September 30, 2019 and December 31, 2018, respectively. At September 30, 2019 and December 31, 2018, 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 | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Revenues: | |||||||||||||||
Net premiums earned | $ | $ | $ | $ | |||||||||||
Title, escrow, and other fees | |||||||||||||||
Total premiums and fees | |||||||||||||||
Net investment income | |||||||||||||||
Other income | |||||||||||||||
Total operating revenues | |||||||||||||||
Investment gains (losses): | |||||||||||||||
Realized from actual transactions and impairments | |||||||||||||||
Unrealized from changes in fair value of | |||||||||||||||
equity securities | |||||||||||||||
Total realized and unrealized investment | |||||||||||||||
gains (losses) | |||||||||||||||
Total revenues | |||||||||||||||
Benefits, Claims and Expenses: | |||||||||||||||
Benefits, claims and settlement expenses | |||||||||||||||
Dividends to policyholders | |||||||||||||||
Underwriting, acquisition, and other expenses | |||||||||||||||
Interest and other charges | |||||||||||||||
Total expenses | |||||||||||||||
Income (loss) before income taxes (credits) | |||||||||||||||
Income Taxes (Credits): | |||||||||||||||
Current | |||||||||||||||
Deferred | |||||||||||||||
Total | |||||||||||||||
Net Income (Loss) | $ | $ | $ | $ | |||||||||||
Net Income (Loss) Per Share: | |||||||||||||||
Basic | $ | $ | $ | $ | |||||||||||
Diluted | $ | $ | $ | $ | |||||||||||
Average shares outstanding: Basic | |||||||||||||||
Diluted |
Old Republic International Corporation and Subsidiaries | |||||||||||||||
Consolidated Statements of Comprehensive Income (Unaudited) | |||||||||||||||
($ in Millions) | |||||||||||||||
Quarters Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Net Income (Loss) As Reported | $ | $ | $ | $ | |||||||||||
Other comprehensive income (loss): | |||||||||||||||
Unrealized gains (losses) on securities: | |||||||||||||||
Unrealized gains (losses) before reclassifications, | |||||||||||||||
not included in the statements of income | ( | ) | ( | ) | |||||||||||
Amounts reclassified as realized investment (gains) | |||||||||||||||
losses in the statements of income | ( | ) | |||||||||||||
Pretax unrealized gains (losses) on securities | ( | ) | ( | ) | |||||||||||
Deferred income taxes (credits) | ( | ) | ( | ) | |||||||||||
Net unrealized gains (losses) on securities, net of tax | ( | ) | ( | ) | |||||||||||
Defined benefit pension plans: | |||||||||||||||
Net pension adjustment before reclassifications | ( | ) | |||||||||||||
Amounts reclassified as underwriting, acquisition, | |||||||||||||||
and other expenses in the statements of income | |||||||||||||||
Pretax net adjustment related to defined benefit | |||||||||||||||
pension plans | |||||||||||||||
Deferred income taxes (credits) | |||||||||||||||
Net adjustment related to defined benefit pension | |||||||||||||||
plans, net of tax | |||||||||||||||
Foreign currency translation and other adjustments | ( | ) | ( | ) | |||||||||||
Total other comprehensive income (loss) | ( | ) | ( | ) | |||||||||||
Comprehensive Income (Loss) | $ | $ | $ | $ |
Old Republic International Corporation and Subsidiaries | |||||||||||||||
Consolidated Statements of Preferred Stock | |||||||||||||||
and Common Shareholders' Equity (Unaudited) | |||||||||||||||
($ in Millions) | |||||||||||||||
Quarters Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Convertible Preferred Stock: | |||||||||||||||
Balance, beginning and end of period | $ | $ | $ | $ | |||||||||||
Common Stock: | |||||||||||||||
Balance, beginning of period | $ | $ | $ | $ | |||||||||||
Dividend reinvestment plan | |||||||||||||||
Net issuance of shares under stock based compensation plans | |||||||||||||||
Conversion of senior debentures | |||||||||||||||
Balance, end of period | $ | $ | $ | $ | |||||||||||
Additional Paid-in Capital: | |||||||||||||||
Balance, beginning of period | $ | $ | $ | $ | |||||||||||
Dividend reinvestment plan | |||||||||||||||
Net issuance of shares under stock based compensation plans | |||||||||||||||
Conversion of senior debentures | |||||||||||||||
Stock based compensation | |||||||||||||||
ESSOP shares released | |||||||||||||||
Balance, end of period | $ | $ | $ | $ | |||||||||||
Retained Earnings: | |||||||||||||||
Balance, beginning of period | $ | $ | $ | $ | |||||||||||
Change in accounting principle | |||||||||||||||
Balance, beginning of period, as adjusted | |||||||||||||||
Net income (loss) | |||||||||||||||
Dividends on common shares ($1.20, $.195, $1.60 and $.585 per | |||||||||||||||
common share) | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Balance, end of period | $ | $ | $ | $ | |||||||||||
Accumulated Other Comprehensive Income (Loss): | |||||||||||||||
Balance, beginning of period | $ | $ | ( | ) | $ | ( | ) | $ | |||||||
Change in accounting principle | ( | ) | |||||||||||||
Balance, beginning of period, as adjusted | ( | ) | ( | ) | ( | ) | |||||||||
Net unrealized gains (losses) on securities, net of tax | ( | ) | ( | ) | |||||||||||
Net adjustment related to defined benefit pension plans, | |||||||||||||||
net of tax | |||||||||||||||
Foreign currency translation and other adjustments | ( | ) | ( | ) | |||||||||||
Balance, end of period | $ | $ | ( | ) | $ | $ | ( | ) | |||||||
Unallocated ESSOP Shares: | |||||||||||||||
Balance, beginning of period | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||
ESSOP shares released | |||||||||||||||
Purchase of unallocated ESSOP shares | ( | ) | |||||||||||||
Balance, end of period | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) |
Old Republic International Corporation and Subsidiaries | ||||||||
Consolidated Statements of Cash Flows (Unaudited) | ||||||||
($ in Millions) | ||||||||
Nine Months Ended | ||||||||
September 30, | ||||||||
2019 | 2018 | |||||||
Cash flows from operating activities: | ||||||||
Net income (loss) | $ | $ | ||||||
Adjustments to reconcile net income (loss) to | ||||||||
net cash provided by operating activities: | ||||||||
Deferred policy acquisition costs | ( | ) | ( | ) | ||||
Premiums and other receivables | ( | ) | ( | ) | ||||
Unpaid claims and related items | ||||||||
Unearned premiums and other policyholders' liabilities | ||||||||
Income taxes | ||||||||
Prepaid federal income taxes | ( | ) | ||||||
Reinsurance balances and funds | ||||||||
Realized investment (gains) losses from actual transactions and impairments | ( | ) | ( | ) | ||||
Unrealized investment (gains) losses from changes in fair value | ||||||||
of equity securities | ( | ) | ( | ) | ||||
Accounts payable, accrued expenses and other | ||||||||
Total | ||||||||
Cash flows from investing activities: | ||||||||
Fixed maturity securities: | ||||||||
Available for sale: | ||||||||
Maturities and early calls | ||||||||
Sales | ||||||||
Sales of: | ||||||||
Equity securities | ||||||||
Other - net | ||||||||
Purchases of: | ||||||||
Fixed maturity securities: | ||||||||
Available for sale | ( | ) | ( | ) | ||||
Equity securities | ( | ) | ( | ) | ||||
Other - net | ( | ) | ( | ) | ||||
Net decrease (increase) in short-term investments | ( | ) | ||||||
Other - net | ( | ) | ( | ) | ||||
Total | ( | ) | ( | ) | ||||
Cash flows from financing activities: | ||||||||
Issuance of common shares | ||||||||
Redemption of debentures and notes | ( | ) | ( | ) | ||||
Purchase of unallocated common shares by ESSOP | ( | ) | ||||||
Dividends on common shares (including a special dividend paid in September | ||||||||
2019 of $303.4 and a special dividend declared in December 2017 and paid | ||||||||
in January 2018 of $269.2) | ( | ) | ( | ) | ||||
Other - net | ( | ) | ( | ) | ||||
Total | ( | ) | ( | ) | ||||
Increase (decrease) in cash | ( | ) | ||||||
Cash, beginning of period | ||||||||
Cash, end of period | $ | $ | ||||||
Supplemental cash flow information: | ||||||||
Cash paid (received) during the period for: Interest | $ | $ | ||||||
Income taxes | $ | $ |
OLD REPUBLIC INTERNATIONAL CORPORATION |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) |
($ in Millions, Except Share Data) |
Quarters Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Numerator: | |||||||||||||||
Basic earnings per share - | |||||||||||||||
income (loss) available to common stockholders | $ | $ | $ | $ | |||||||||||
Adjustment for interest expense incurred on | |||||||||||||||
assumed conversion of convertible notes | |||||||||||||||
Diluted earnings per share - | |||||||||||||||
income (loss) available to common stockholders | |||||||||||||||
after assumed conversion of convertible notes | $ | $ | $ | $ | |||||||||||
Denominator: | |||||||||||||||
Basic earnings per share - | |||||||||||||||
weighted-average shares (a) | |||||||||||||||
Effect of dilutive securities - stock based | |||||||||||||||
compensation awards | |||||||||||||||
Effect of dilutive securities - convertible notes | |||||||||||||||
Diluted earnings per share - | |||||||||||||||
adjusted weighted-average shares | |||||||||||||||
and assumed conversion of convertible notes (a) | |||||||||||||||
Earnings per share: Basic | $ | $ | $ | $ | |||||||||||
Diluted | $ | $ | $ | $ | |||||||||||
Anti-dilutive common stock equivalents | |||||||||||||||
excluded from earnings per share computations: | |||||||||||||||
Stock based compensation awards | |||||||||||||||
Convertible senior notes | |||||||||||||||
Total |
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||
Fixed Maturity Securities by Type: | |||||||||||||||
September 30, 2019: | |||||||||||||||
Available for sale: | |||||||||||||||
U.S. & Canadian Governments | $ | $ | $ | $ | |||||||||||
Corporate | |||||||||||||||
$ | $ | $ | $ | ||||||||||||
Held to maturity: | |||||||||||||||
Tax-exempt | $ | $ | $ | $ | |||||||||||
December 31, 2018: | |||||||||||||||
Available for sale: | |||||||||||||||
U.S. & Canadian Governments | $ | $ | $ | $ | |||||||||||
Corporate | |||||||||||||||
$ | $ | $ | $ | ||||||||||||
Held to maturity: | |||||||||||||||
Tax-exempt | $ | $ | $ | $ |
Amortized Cost | Estimated Fair Value | ||||||
Fixed Maturity Securities Stratified by Contractual Maturity at September 30, 2019: | |||||||
Available for sale: | |||||||
Due in one year or less | $ | $ | |||||
Due after one year through five years | |||||||
Due after five years through ten years | |||||||
Due after ten years | |||||||
$ | $ | ||||||
Held to maturity: | |||||||
Due in one year or less | $ | $ | |||||
Due after one year through five years | |||||||
Due after five years through ten years | |||||||
Due after ten years | |||||||
$ | $ |
Less than 12 Months | 12 Months or Greater | Total | |||||||||||||||||||||
Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||
September 30, 2019: | |||||||||||||||||||||||
Fixed Maturity Securities: | |||||||||||||||||||||||
Available for sale: | |||||||||||||||||||||||
U.S. & Canadian Governments | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Corporate | |||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
Number of available for sale | |||||||||||||||||||||||
securities in unrealized | |||||||||||||||||||||||
loss position | |||||||||||||||||||||||
Held to maturity: | |||||||||||||||||||||||
Tax-exempt | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Number of held to maturity | |||||||||||||||||||||||
securities in unrealized | |||||||||||||||||||||||
loss position | |||||||||||||||||||||||
December 31, 2018: | |||||||||||||||||||||||
Fixed Maturity Securities: | |||||||||||||||||||||||
Available for sale: | |||||||||||||||||||||||
U.S. & Canadian Governments | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Corporate | |||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
Number of available for sale | |||||||||||||||||||||||
securities in unrealized | |||||||||||||||||||||||
loss position | |||||||||||||||||||||||
Held to maturity: | |||||||||||||||||||||||
Tax-exempt | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Number of held to maturity | |||||||||||||||||||||||
securities in unrealized | |||||||||||||||||||||||
loss position |
Equity Securities | |||||||||||||||
Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||
September 30, 2019 | $ | $ | $ | $ | |||||||||||
December 31, 2018 | $ | $ | $ | $ |
Fair Value Measurements | ||||||||||||||||
As of September 30, 2019: | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Available for sale: | ||||||||||||||||
Fixed maturity securities: | ||||||||||||||||
U.S. & Canadian Governments | $ | $ | $ | $ | ||||||||||||
Corporate | ||||||||||||||||
Short-term investments | ||||||||||||||||
Held to maturity: | ||||||||||||||||
Fixed maturity securities: | ||||||||||||||||
Tax-exempt | ||||||||||||||||
Equity securities | $ | $ | $ | $ | ||||||||||||
As of December 31, 2018: | ||||||||||||||||
Available for sale: | ||||||||||||||||
Fixed maturity securities: | ||||||||||||||||
U.S. & Canadian Governments | $ | $ | $ | $ | ||||||||||||
Corporate | ||||||||||||||||
Short-term investments | ||||||||||||||||
Held to maturity: | ||||||||||||||||
Fixed maturity securities: | ||||||||||||||||
Tax-exempt | ||||||||||||||||
Equity securities | $ | $ | $ | $ |
Quarters Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Investment income: | |||||||||||||||
Fixed maturity securities | $ | $ | $ | $ | |||||||||||
Equity securities | |||||||||||||||
Short-term investments | |||||||||||||||
Other sources | |||||||||||||||
Gross investment income | |||||||||||||||
Investment expenses (a) | |||||||||||||||
Net investment income | $ | $ | $ | $ | |||||||||||
Investment gains (losses): | |||||||||||||||
From actual transactions: | |||||||||||||||
Fixed maturity securities: | |||||||||||||||
Gains | $ | $ | $ | $ | |||||||||||
Losses | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Net | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Equity securities: | |||||||||||||||
Gains | |||||||||||||||
Losses | ( | ) | ( | ) | ( | ) | |||||||||
Net | |||||||||||||||
Other long-term investments, net | ( | ) | ( | ) | |||||||||||
Total from actual transactions | |||||||||||||||
From impairments | ( | ) | |||||||||||||
From unrealized changes in fair value of equity securities | |||||||||||||||
Total realized and unrealized investment gains (losses) | |||||||||||||||
Current and deferred income taxes (credits)(b) | |||||||||||||||
Net of tax realized and unrealized investment gains (losses) | $ | $ | $ | $ | |||||||||||
Changes in unrealized investment gains (losses) | |||||||||||||||
reflected directly in shareholders' equity: | |||||||||||||||
Fixed maturity securities | $ | $ | ( | ) | $ | $ | ( | ) | |||||||
Less: Deferred income taxes (credits) | ( | ) | ( | ) | |||||||||||
( | ) | ( | ) | ||||||||||||
Other long-term investments | ( | ) | |||||||||||||
Less: Deferred income taxes (credits) | |||||||||||||||
( | ) | ||||||||||||||
Net changes in unrealized investment gains (losses), | |||||||||||||||
net of tax | $ | $ | ( | ) | $ | $ | ( | ) |
(a) | Investment expenses largely consist of personnel costs and investment management and custody service fees. |
(b) | Reflects primarily the combination of fully taxable investment gains or losses and judgments about the recoverability of deferred tax assets. |
This space left intentionally blank |
Nine Months Ended | |||||||
September 30, | |||||||
2019 | 2018 | ||||||
Gross reserves at beginning of period | $ | $ | |||||
Less: reinsurance losses recoverable | |||||||
Net reserves at beginning of period: | |||||||
General Insurance | |||||||
Title Insurance | |||||||
RFIG Run-off | |||||||
Other | |||||||
Sub-total | |||||||
Incurred claims and claim adjustment expenses: | |||||||
Provisions for insured events of the current year: | |||||||
General Insurance | |||||||
Title Insurance | |||||||
RFIG Run-off (a) | |||||||
Other | |||||||
Sub-total | |||||||
Change in provision for insured events of prior years: | |||||||
General Insurance | ( | ) | |||||
Title Insurance | ( | ) | ( | ) | |||
RFIG Run-off (a) | ( | ) | ( | ) | |||
Other | ( | ) | ( | ) | |||
Sub-total | ( | ) | ( | ) | |||
Total incurred claims and claim adjustment expenses (a) | |||||||
Payments: | |||||||
Claims and claim adjustment expenses attributable to | |||||||
insured events of the current year: | |||||||
General Insurance | |||||||
Title Insurance | |||||||
RFIG Run-off | |||||||
Other | |||||||
Sub-total | |||||||
Claims and claim adjustment expenses attributable to | |||||||
insured events of prior years: | |||||||
General Insurance | |||||||
Title Insurance | |||||||
RFIG Run-off | |||||||
Other | |||||||
Sub-total | |||||||
Total payments | |||||||
Amount of reserves for unpaid claims and claim adjustment expenses | |||||||
at the end of each period, net of reinsurance losses recoverable: | |||||||
General Insurance | |||||||
Title Insurance | |||||||
RFIG Run-off | |||||||
Other | |||||||
Sub-total | |||||||
Reinsurance losses recoverable | |||||||
Gross reserves at end of period | $ | $ |
(a) | In common with all other insurance coverages, RFIG Run-off mortgage guaranty settled and incurred claim and claim adjustment expenses include only those costs actually or expected to be paid by the Company. Changes in mortgage guaranty aggregate case, IBNR, and loss adjustment expense reserves entering into the determination of incurred claim costs, take into account, among a large number of variables, claim cost reductions for anticipated |
This space left intentionally blank |
Quarters Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
General Insurance (a): | |||||||||||||||
Net premiums earned | $ | $ | $ | $ | |||||||||||
Net investment income and other income | |||||||||||||||
Total revenues excluding investment gains (losses) | $ | $ | $ | $ | |||||||||||
Segment pretax operating income (loss) (b) | $ | $ | $ | $ | |||||||||||
Income tax expense (credits) on above | $ | $ | $ | $ | |||||||||||
Title Insurance: | |||||||||||||||
Net premiums earned | $ | $ | $ | $ | |||||||||||
Title, escrow and other fees | |||||||||||||||
Sub-total | |||||||||||||||
Net investment income and other income | |||||||||||||||
Total revenues excluding investment gains (losses) | $ | $ | $ | $ | |||||||||||
Segment pretax operating income (loss) (b) | $ | $ | $ | $ | |||||||||||
Income tax expense (credits) on above | $ | $ | $ | $ | |||||||||||
RFIG Run-off Business (a): | |||||||||||||||
Net premiums earned | $ | $ | $ | $ | |||||||||||
Net investment income and other income | |||||||||||||||
Total revenues excluding investment gains (losses) | $ | $ | $ | $ | |||||||||||
Segment pretax operating income (loss) | $ | $ | $ | $ | |||||||||||
Income tax expense (credits) on above | $ | $ | $ | $ | |||||||||||
Consolidated Revenues: | |||||||||||||||
Total revenues of above Company segments | $ | $ | $ | $ | |||||||||||
Other sources (c) | |||||||||||||||
Consolidated investment gains (losses): | |||||||||||||||
Realized from actual transactions and impairments | |||||||||||||||
Unrealized from changes in fair value of equity securities | |||||||||||||||
Total realized and unrealized investment gains (losses) | |||||||||||||||
Consolidation elimination adjustments | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Consolidated revenues | $ | $ | $ | $ | |||||||||||
Consolidated Pretax Income (Loss): | |||||||||||||||
Total segment pretax operating income (loss) of | |||||||||||||||
above Company segments | $ | $ | $ | $ | |||||||||||
Other sources - net (c) | |||||||||||||||
Consolidated investment gains (losses): | |||||||||||||||
Realized from actual transactions and impairments | |||||||||||||||
Unrealized from changes in fair value of equity securities | |||||||||||||||
Total realized and unrealized investment gains (losses) | |||||||||||||||
Consolidated income (loss) before income | |||||||||||||||
taxes (credits) | $ | $ | $ | $ | |||||||||||
Quarters Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Consolidated Income Tax Expense (Credits): | |||||||||||||||
Total income tax expense (credits) | |||||||||||||||
of above Company segments | $ | $ | $ | $ | |||||||||||
Other sources - net (c) | ( | ) | ( | ) | |||||||||||
Income tax expense (credits) on consolidated realized | |||||||||||||||
and unrealized investment gains (losses) | |||||||||||||||
Consolidated income tax expense (credits) | $ | $ | $ | $ | |||||||||||
September 30, | December 31, | ||||||
2019 | 2018 | ||||||
Consolidated Assets: | |||||||
General Insurance | $ | $ | |||||
Title Insurance | |||||||
RFIG Run-off Business | |||||||
Total assets for the above company segments | |||||||
Other assets (c) | |||||||
Consolidation elimination adjustments | ( | ) | ( | ) | |||
Consolidated assets | $ | $ | |||||
(b) |
(c) | Includes amounts for a small life and accident insurance business as well as those of the parent holding company and its internal corporate services subsidiaries. |
Lease | ||||||||||||||||||||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Thereafter | Total | Discount | Liability | ||||||||||||||
September 30, 2019 | $ | $ | $ | $ | ||||||||||||||||||
December 31, 2018 | $ | $ |
September 30, 2019 | December 31, 2018 | ||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||
4.875% Senior Notes issued in 2014 and due 2024 | $ | $ | $ | $ | |||||||||||
3.875% Senior Notes issued in 2016 and due 2026 | |||||||||||||||
Other miscellaneous debt | |||||||||||||||
Total debt | $ | $ | $ | $ |
Carrying | Fair | |||||||||||||||||||
Value | Value | Level 1 | Level 2 | Level 3 | ||||||||||||||||
Financial Liabilities: | ||||||||||||||||||||
Debt: | ||||||||||||||||||||
September 30, 2019 | $ | $ | $ | $ | $ | |||||||||||||||
December 31, 2018 | $ | $ | $ | $ | $ |
OVERVIEW |
EXECUTIVE SUMMARY |
Old Republic International Corporation reported the following consolidated results: | ||||||||||||||||||||||
Quarters Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||
2019 | 2018 | % Change | 2019 | 2018 | % Change | |||||||||||||||||
Pretax income (loss) | $ | 252.4 | $ | 335.1 | -24.7 | % | $ | 976.3 | $ | 575.7 | 69.6 | % | ||||||||||
Pretax investment gains (losses) included in pretax income (loss) | 63.6 | 135.7 | -53.1 | 468.7 | 72.6 | N/M | ||||||||||||||||
Pretax income (loss) excluding investment gains (losses) | $ | 188.7 | $ | 199.3 | -5.3 | % | $ | 507.6 | $ | 503.0 | 0.9 | % | ||||||||||
Net income (loss) | $ | 202.8 | $ | 275.2 | -26.3 | % | $ | 780.6 | $ | 477.0 | 63.6 | % | ||||||||||
Net of tax investment gains (losses) included in net income (loss) | 50.1 | 107.2 | -53.2 | 369.9 | 57.4 | N/M | ||||||||||||||||
Net income (loss) excluding investment gains (losses) | $ | 152.7 | $ | 167.9 | -9.1 | % | $ | 410.6 | $ | 419.6 | -2.1 | % |
FINANCIAL HIGHLIGHTS | |||||||||||||||||||||||
Quarters Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
SUMMARY INCOME STATEMENTS: | 2019 | 2018 | % Change | 2019 | 2018 | % Change | |||||||||||||||||
Revenues: | |||||||||||||||||||||||
Net premiums and fees earned | $ | 1,561.7 | $ | 1,504.8 | 3.8 | % | $ | 4,380.4 | $ | 4,255.5 | 2.9 | % | |||||||||||
Net investment income | 112.7 | 108.7 | 3.6 | 337.8 | 321.5 | 5.1 | |||||||||||||||||
Other income | 32.9 | 30.4 | 8.3 | 97.4 | 91.1 | 6.9 | |||||||||||||||||
Total operating revenues | 1,707.3 | 1,644.0 | 3.9 | 4,815.7 | 4,668.2 | 3.2 | |||||||||||||||||
Investment gains (losses): | |||||||||||||||||||||||
Realized from actual transactions | 6.3 | 7.3 | 31.3 | 54.8 | |||||||||||||||||||
Realized from impairments | — | — | (2.0 | ) | — | ||||||||||||||||||
Unrealized from changes in fair value of equity securities | 57.3 | 128.4 | 439.3 | 17.7 | |||||||||||||||||||
Total investment gains (losses) | 63.6 | 135.7 | 468.7 | 72.6 | |||||||||||||||||||
Total revenues | 1,771.0 | 1,779.7 | 5,284.4 | 4,740.9 | |||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Claim costs | 663.7 | 619.4 | 7.2 | 1,905.1 | 1,820.8 | 4.6 | |||||||||||||||||
Sales and general expenses | 845.0 | 815.2 | 3.7 | 2,372.0 | 2,310.0 | 2.7 | |||||||||||||||||
Interest and other charges | 9.7 | 9.9 | -2.0 | 30.8 | 34.3 | -10.3 | |||||||||||||||||
Total operating expenses | 1,518.6 | 1,444.6 | 5.1 | % | 4,308.0 | 4,165.2 | 3.4 | % | |||||||||||||||
Pretax income (loss) | 252.4 | 335.1 | 976.3 | 575.7 | |||||||||||||||||||
Income taxes (credits) | 49.5 | 59.8 | 195.6 | 98.6 | |||||||||||||||||||
Net income (loss) | $ | 202.8 | $ | 275.2 | $ | 780.6 | $ | 477.0 | |||||||||||||||
COMMON STOCK STATISTICS: | |||||||||||||||||||||||
Net income (loss) per share: Basic | $ | 0.68 | $ | 0.92 | $ | 2.60 | $ | 1.63 | |||||||||||||||
Diluted | $ | 0.67 | $ | 0.92 | $ | 2.59 | $ | 1.59 | |||||||||||||||
Components of net income (loss) per share: | |||||||||||||||||||||||
Basic net income (loss) excluding investment gains (losses) | $ | 0.51 | $ | 0.56 | -8.9 | % | $ | 1.37 | $ | 1.43 | -4.2 | % | |||||||||||
Net investment gains (losses): | |||||||||||||||||||||||
Realized from actual transactions and impairments | 0.02 | 0.02 | 0.08 | 0.15 | |||||||||||||||||||
Unrealized from changes in fair value of equity securities | 0.15 | 0.34 | 1.15 | 0.05 | |||||||||||||||||||
Basic net income (loss) | $ | 0.68 | $ | 0.92 | $ | 2.60 | $ | 1.63 | |||||||||||||||
Diluted net income (loss) excluding investment gains (losses) | $ | 0.51 | $ | 0.56 | -8.9 | % | $ | 1.36 | $ | 1.40 | -2.9 | % | |||||||||||
Net investment gains (losses): | |||||||||||||||||||||||
Realized from actual transactions and impairments | 0.01 | 0.02 | 0.08 | 0.14 | |||||||||||||||||||
Unrealized from changes in fair value of equity securities | 0.15 | 0.34 | 1.15 | 0.05 | |||||||||||||||||||
Diluted net income (loss) | $ | 0.67 | $ | 0.92 | $ | 2.59 | $ | 1.59 | |||||||||||||||
Cash dividends on common stock | $ | 1.2000 | $ | 0.1950 | $ | 1.6000 | $ | 0.5850 | |||||||||||||||
Book value per share | $ | 19.31 | $ | 17.76 | 8.7 | % | |||||||||||||||||
Continued on the next page |
Major Segmented and Consolidated Elements of Income (Loss) | |||||||||||||||||||||
Quarters Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||
2019 | 2018 | % Change | 2019 | 2018 | % Change | ||||||||||||||||
A. Net premiums, fees, and other income: | |||||||||||||||||||||
General insurance | $ | 870.2 | $ | 841.5 | 3.4 | % | $ | 2,551.9 | $ | 2,441.3 | 4.5 | % | |||||||||
Title insurance | 673.8 | 640.7 | 5.2 | 1,772.3 | 1,743.6 | 1.6 | |||||||||||||||
Corporate and other | 3.3 | 4.2 | -21.9 | 10.2 | 11.2 | -8.8 | |||||||||||||||
Other income | 32.9 | 30.4 | 8.3 | 97.4 | 91.1 | 6.9 | |||||||||||||||
Subtotal | 1,580.3 | 1,517.0 | 4.2 | 4,431.9 | 4,287.4 | 3.4 | |||||||||||||||
RFIG run-off business (c) | 14.2 | 18.2 | -21.6 | 45.8 | 59.2 | -22.6 | |||||||||||||||
Consolidated | $ | 1,594.6 | $ | 1,535.2 | 3.9 | % | $ | 4,477.8 | $ | 4,346.7 | 3.0 | % | |||||||||
B. Underwriting and related | |||||||||||||||||||||
services income (loss): | |||||||||||||||||||||
General insurance | $ | 19.7 | $ | 37.0 | -46.7 | % | $ | 74.6 | $ | 78.0 | -4.3 | % | |||||||||
Title insurance | 63.3 | 58.7 | 7.9 | 126.1 | 132.6 | -4.8 | |||||||||||||||
Corporate and other | (0.3 | ) | (4.0 | ) | 90.8 | (10.9 | ) | (17.4 | ) | 37.5 | |||||||||||
Subtotal | 82.7 | 91.7 | -9.8 | 189.9 | 193.2 | -1.7 | |||||||||||||||
RFIG run-off business (c) | 3.0 | 8.7 | -65.2 | 10.7 | 22.6 | -52.8 | |||||||||||||||
Consolidated | $ | 85.7 | $ | 100.5 | -14.7 | % | $ | 200.6 | $ | 215.8 | -7.0 | % | |||||||||
C. Consolidated underwriting ratio: | |||||||||||||||||||||
Claim ratio | 42.5 | % | 41.2 | % | 43.5 | % | 42.8 | % | |||||||||||||
Expense ratio | 51.9 | 51.9 | 51.7 | 51.9 | |||||||||||||||||
Composite ratio | 94.4 | % | 93.1 | % | 95.2 | % | 94.7 | % | |||||||||||||
D. Net investment income: | |||||||||||||||||||||
General insurance | $ | 88.7 | $ | 86.1 | 3.0 | % | $ | 265.8 | $ | 253.8 | 4.7 | % | |||||||||
Title insurance | 10.2 | 9.8 | 4.3 | 30.8 | 28.8 | 6.8 | |||||||||||||||
Corporate and other | 9.4 | 8.1 | 15.2 | 27.9 | 23.4 | 19.3 | |||||||||||||||
Subtotal | 108.4 | 104.1 | 4.1 | 324.6 | 306.1 | 6.0 | |||||||||||||||
RFIG run-off business | 4.2 | 4.6 | -7.1 | 13.2 | 15.4 | -14.2 | |||||||||||||||
Consolidated | $ | 112.7 | $ | 108.7 | 3.6 | % | $ | 337.8 | $ | 321.5 | 5.1 | % | |||||||||
E. Interest and other charges: | |||||||||||||||||||||
General insurance | $ | 17.7 | $ | 18.0 | $ | 54.6 | $ | 52.7 | |||||||||||||
Title insurance | 0.7 | 0.8 | 3.3 | 3.2 | |||||||||||||||||
Corporate and other (a) | (8.7 | ) | (8.9 | ) | (27.1 | ) | (21.6 | ) | |||||||||||||
Subtotal | 9.7 | 9.9 | 30.8 | 34.3 | |||||||||||||||||
RFIG run-off business | — | — | — | — | |||||||||||||||||
Consolidated | $ | 9.7 | $ | 9.9 | -2.0 | % | $ | 30.8 | $ | 34.3 | -10.3 | % | |||||||||
F. Segmented and consolidated | |||||||||||||||||||||
pretax income (loss) excluding | |||||||||||||||||||||
investment gains (losses): | |||||||||||||||||||||
General insurance | $ | 90.7 | $ | 105.1 | -13.7 | % | $ | 285.8 | $ | 279.1 | 2.4 | % | |||||||||
Title insurance | 72.8 | 67.7 | 7.6 | 153.7 | 158.2 | -2.8 | |||||||||||||||
Corporate and other | 17.7 | 13.1 | 35.2 | 44.2 | 27.6 | 60.3 | |||||||||||||||
Subtotal | 181.4 | 185.9 | -2.5 | 483.7 | 464.9 | 4.0 | |||||||||||||||
RFIG run-off business (c) | 7.3 | 13.3 | -45.1 | 23.9 | 38.0 | -37.2 | |||||||||||||||
Consolidated | 188.7 | 199.3 | -5.3 | % | 507.6 | 503.0 | 0.9 | % | |||||||||||||
Income taxes (credits) on above (b) | 36.0 | 31.3 | 96.9 | 83.4 | |||||||||||||||||
G. Net income (loss) excluding | |||||||||||||||||||||
investment gains (losses) | 152.7 | 167.9 | -9.1 | % | 410.6 | 419.6 | -2.1 | % | |||||||||||||
H. Consolidated pretax investment | |||||||||||||||||||||
gains (losses): | |||||||||||||||||||||
Realized from actual transactions | |||||||||||||||||||||
and impairments | 6.3 | 7.3 | 29.3 | 54.8 | |||||||||||||||||
Unrealized from changes in | |||||||||||||||||||||
fair value of equity securities | 57.3 | 128.4 | 439.3 | 17.7 | |||||||||||||||||
Total | 63.6 | 135.7 | 468.7 | 72.6 | |||||||||||||||||
Income taxes (credits) on above | 13.5 | 28.5 | 98.7 | 15.2 | |||||||||||||||||
Net of tax investment gains (losses) | 50.1 | 107.2 | 369.9 | 57.4 | |||||||||||||||||
I. Net income (loss) | $ | 202.8 | $ | 275.2 | $ | 780.6 | $ | 477.0 | |||||||||||||
J. Consolidated operating cash flow | $ | 666.2 | $ | 597.1 | |||||||||||||||||
General Insurance Summary Operating Results | |||||||||||||||||||||
Quarters Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||
2019 | 2018 | % Change | 2019 | 2018 | % Change | ||||||||||||||||
Net premiums earned | $ | 870.2 | $ | 841.5 | 3.4 | % | $ | 2,551.9 | $ | 2,441.3 | 4.5 | % | |||||||||
Net investment income | 88.7 | 86.1 | 3.0 | 265.8 | 253.8 | 4.7 | |||||||||||||||
Other income | 32.7 | 30.2 | 8.4 | 97.0 | 90.5 | 7.1 | |||||||||||||||
Operating revenues | 991.7 | 957.8 | 3.5 | 2,914.7 | 2,785.7 | 4.6 | |||||||||||||||
Claim costs | 634.8 | 595.0 | 6.7 | 1,821.9 | 1,739.3 | 4.8 | |||||||||||||||
Sales and general expenses | 248.4 | 239.6 | 3.7 | 752.2 | 714.5 | 5.3 | |||||||||||||||
Interest and other charges | 17.7 | 18.0 | -2.1 | 54.6 | 52.7 | 3.7 | |||||||||||||||
Operating expenses | 900.9 | 852.7 | 5.7 | 2,628.9 | 2,506.6 | 4.9 | |||||||||||||||
Segment pretax operating income (loss) (a) | $ | 90.7 | $ | 105.1 | -13.7 | % | $ | 285.8 | $ | 279.1 | 2.4 | % | |||||||||
Claim ratio | 72.9 | % | 70.7 | % | 71.4 | % | 71.2 | % | |||||||||||||
Expense ratio | 24.8 | 24.9 | 25.7 | 25.6 | |||||||||||||||||
Composite ratio | 97.7 | % | 95.6 | % | 97.1 | % | 96.8 | % |
(a) | In connection with the combined run-off mortgage guaranty ("MI") and consumer credit indemnity ("CCI"), $0.2 and $0.7 of pretax operating income for the third quarter and first nine months of 2018 were retained by certain general insurance companies pursuant to various quota share and stop loss reinsurance agreements. All of these amounts historically have been reclassified such that 100% of the CCI run-off business is reported in the RFIG run-off segment. Effective July 1, 2019, the results of the CCI run-off business are being classified in the General Insurance Segment for the third quarter 2019 and all future periods. |
Effect of Prior Periods' | ||||||||||||||
(Favorable)/ | Claim Ratio Excluding | |||||||||||||
Reported | Unfavorable Claim | Prior Periods' Claim | ||||||||||||
Claim Ratio | Reserves Development | Reserves Development | ||||||||||||
2014 | 77.9 | % | 3.9 | % | 74.0 | % | ||||||||
2015 | 74.1 | 1.5 | 72.6 | |||||||||||
2016 | 73.0 | 0.3 | 72.7 | |||||||||||
2017 | 71.8 | 0.7 | 71.1 | |||||||||||
2018 | 72.2 | % | — | % | 72.2 | % | ||||||||
3rd Quarter 2018 | 70.7 | % | (1.0 | )% | 71.7 | % | ||||||||
3rd Quarter 2019 | 72.9 | % | (0.5 | )% | 73.4 | % | ||||||||
1st Nine Months 2018 | 71.2 | % | 0.3 | % | 70.9 | % | ||||||||
1st Nine Months 2019 | 71.4 | % | (0.4 | )% | 71.8 | % |
Title Insurance Summary Operating Results | |||||||||||||||||||||
Quarters Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||
2019 | 2018 | % Change | 2019 | 2018 | % Change | ||||||||||||||||
Net premiums and fees earned | $ | 673.8 | $ | 640.7 | 5.2 | % | $ | 1,772.3 | $ | 1,743.6 | 1.6 | % | |||||||||
Net investment income | 10.2 | 9.8 | 4.3 | 30.8 | 28.8 | 6.8 | |||||||||||||||
Other income | 0.1 | 0.1 | 1.0 | 0.5 | 0.6 | -18.7 | |||||||||||||||
Operating revenues | 684.3 | 650.8 | 5.1 | 1,803.7 | 1,773.1 | 1.7 | |||||||||||||||
Claim costs | 20.7 | 15.1 | 37.3 | 53.3 | 45.0 | 18.4 | |||||||||||||||
Sales and general expenses | 589.9 | 567.1 | 4.0 | 1,593.3 | 1,566.6 | 1.7 | |||||||||||||||
Interest and other charges | 0.7 | 0.8 | -9.0 | 3.3 | 3.2 | 1.3 | |||||||||||||||
Operating expenses | 611.4 | 583.1 | 4.9 | 1,650.0 | 1,614.9 | 2.2 | |||||||||||||||
Segment pretax operating income (loss) | $ | 72.8 | $ | 67.7 | 7.6 | % | $ | 153.7 | $ | 158.2 | -2.8 | % | |||||||||
Claim ratio | 3.1 | % | 2.4 | % | 3.0 | % | 2.6 | % | |||||||||||||
Expense ratio | 87.5 | 88.5 | 89.9 | 89.8 | |||||||||||||||||
Composite ratio | 90.6 | % | 90.9 | % | 92.9 | % | 92.4 | % |
Effect of Prior Periods' | ||||||||||||||
(Favorable)/ | Claim Ratio Excluding | |||||||||||||
Reported | Unfavorable Claim | Prior Periods' Claim | ||||||||||||
Claim Ratio | Reserves Development | Reserves Development | ||||||||||||
2014 | 5.2 | % | (0.8 | )% | 6.0 | % | ||||||||
2015 | 4.9 | (0.6 | ) | 5.5 | ||||||||||
2016 | 3.8 | (1.1 | ) | 4.9 | ||||||||||
2017 | 0.9 | (3.3 | ) | 4.2 | ||||||||||
2018 | 2.1 | % | (2.0 | )% | 4.1 | % | ||||||||
3rd Quarter 2018 | 2.4 | % | (1.8 | )% | 4.2 | % | ||||||||
3rd Quarter 2019 | 3.1 | % | (1.0 | )% | 4.1 | % | ||||||||
1st Nine Months 2018 | 2.6 | % | (1.5 | )% | 4.1 | % | ||||||||
1st Nine Months 2019 | 3.0 | % | (1.0 | )% | 4.0 | % |
RFIG Run-off Summary Operating Results (a) | |||||||||||||||||||||
Quarters Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||
2019 | 2018 | % Change | 2019 | 2018 | % Change | ||||||||||||||||
A. Mortgage Insurance (MI) | |||||||||||||||||||||
Net premiums earned | $ | 14.2 | $ | 17.8 | -20.0 | % | $ | 45.5 | $ | 58.0 | -21.7 | % | |||||||||
Net investment income | 4.2 | 4.3 | -2.5 | 12.9 | 14.7 | -12.1 | |||||||||||||||
Claim costs | 7.6 | 5.5 | 37.9 | 24.1 | 23.3 | 3.4 | |||||||||||||||
MI pretax operating income (loss) | $ | 7.3 | $ | 13.2 | -44.8 | % | $ | 22.8 | $ | 37.9 | -39.8 | % | |||||||||
Claim ratio | 53.6 | % | 31.1 | % | 53.0 | % | 40.2 | % | |||||||||||||
Expense ratio | 25.1 | 19.1 | 25.2 | 19.9 | |||||||||||||||||
Composite ratio | 78.7 | % | 50.2 | % | 78.2 | % | 60.1 | % | |||||||||||||
B. Consumer Credit Indemnity (CCI) (a) | |||||||||||||||||||||
CCI pretax operating income (loss) | $ | — | $ | — | $ | 1.0 | $ | 0.1 | |||||||||||||
C. Total MI and CCI Run-off business (a) | |||||||||||||||||||||
Segment pretax operating income (loss) | $ | 7.3 | $ | 13.3 | -45.1 | % | $ | 23.9 | $ | 38.0 | -37.2 | % | |||||||||
(a) | Segment pretax operating income (loss) includes amounts attributable to the Company's consumer credit indemnity run-off business of $ - and $1.0 for the third quarter and first nine months of 2019, respectively; these amounts were $ - and $0.1 for the third quarter and first nine months of 2018, respectively. Results for the CCI coverages are expected to be immaterial in the remaining run-off periods; effective July 1, 2019, these results are being classified in the General Insurance Segment for the third quarter 2019 and all future periods. |
Effect of Prior Periods' | ||||||||||||||
(Favorable)/ | Claim Ratio Excluding | |||||||||||||
Reported | Unfavorable Claim | Prior Periods' Claim | ||||||||||||
Claim Ratio | Reserves Development | Reserves Development | ||||||||||||
2014 | 48.8 | % | (69.3 | )% | 118.1 | % | ||||||||
2015 | 56.4 | (65.0 | ) | 121.4 | ||||||||||
2016 | 34.1 | (39.8 | ) | 73.9 | ||||||||||
2017 | 57.6 | (38.3 | ) | 95.9 | ||||||||||
2018 | 43.2 | % | (27.0 | )% | 70.2 | % | ||||||||
3rd Quarter 2018 | 31.1 | % | (10.4 | )% | 41.5 | % | ||||||||
3rd Quarter 2019 | 53.6 | % | (14.2 | )% | 67.8 | % | ||||||||
1st Nine Months 2018 | 40.2 | % | (25.7 | )% | 65.9 | % | ||||||||
1st Nine Months 2019 | 53.0 | % | (9.6 | )% | 62.6 | % |
Corporate and Other Summary Operating Results | ||||||||||||||||||||||
Quarters Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||
2019 | 2018 | % Change | 2019 | 2018 | % Change | |||||||||||||||||
Net life and accident premiums earned | $ | 3.3 | $ | 4.2 | -21.9 | % | $ | 10.2 | $ | 11.2 | -8.8 | % | ||||||||||
Net investment income | 9.4 | 8.1 | 15.2 | 27.9 | 23.4 | 19.3 | ||||||||||||||||
Operating revenues | 12.7 | 12.4 | 2.2 | 38.1 | 34.6 | 10.1 | ||||||||||||||||
Claim costs | 0.5 | 3.5 | -84.5 | 6.3 | 12.6 | -49.5 | ||||||||||||||||
Insurance expenses | 0.9 | 1.3 | -28.7 | 3.5 | 3.7 | -7.6 | ||||||||||||||||
Corporate, interest and other expenses - net | (6.5 | ) | (5.6 | ) | -16.8 | (15.9 | ) | (9.3 | ) | -70.4 | ||||||||||||
Operating expenses | (5.0 | ) | (0.6 | ) | N/M | (6.1 | ) | 7.0 | -187.3 | |||||||||||||
Corporate and other pretax operating income (loss) | $ | 17.7 | $ | 13.1 | 35.2 | % | $ | 44.2 | $ | 27.6 | 60.3 | % |
September 30, | December 31, | September 30, | |||||||||
2019 | 2018 | 2018 | |||||||||
Assets: | |||||||||||
Cash and fixed maturity securities | $ | 10,291.4 | $ | 9,683.0 | $ | 9,817.2 | |||||
Equity securities | 3,770.6 | 3,380.9 | 3,474.3 | ||||||||
Other invested assets | 117.7 | 123.4 | 128.5 | ||||||||
Cash and invested assets | 14,179.7 | 13,187.4 | 13,420.1 | ||||||||
Accounts and premiums receivable | 1,687.5 | 1,499.4 | 1,643.0 | ||||||||
Federal income tax recoverable: Current | 0.5 | 16.8 | — | ||||||||
Prepaid federal income taxes | 138.5 | 129.8 | 114.3 | ||||||||
Reinsurance balances recoverable | 3,923.7 | 3,484.5 | 3,637.2 | ||||||||
Deferred policy acquisition costs | 333.0 | 316.3 | 316.6 | ||||||||
Sundry assets | 918.6 | 692.6 | 670.8 | ||||||||
Total assets | $ | 21,181.8 | $ | 19,327.1 | $ | 19,802.3 | |||||
Liabilities and Shareholders' Equity: | |||||||||||
Policy liabilities | $ | 2,602.0 | $ | 2,303.5 | $ | 2,450.5 | |||||
Claim reserves | 9,817.4 | 9,471.2 | 9,482.9 | ||||||||
Federal income tax payable: Current | — | — | 3.7 | ||||||||
Deferred | 171.3 | 10.3 | 54.7 | ||||||||
Reinsurance balances and funds | 759.9 | 600.4 | 703.2 | ||||||||
Debt | 973.7 | 981.4 | 981.1 | ||||||||
Sundry liabilities | 1,063.3 | 813.7 | 814.7 | ||||||||
Total liabilities | 15,387.9 | 14,180.8 | 14,491.1 | ||||||||
Shareholders' equity | 5,793.9 | 5,146.2 | 5,311.2 | ||||||||
Total liabilities and shareholders' equity | $ | 21,181.8 | $ | 19,327.1 | $ | 19,802.3 |
Cash, Invested Assets, and Shareholders' Equity | ||||||||||||||||||||
% Change | ||||||||||||||||||||
Sept. 30, | Dec. 31, | Sept. 30, | Sept. '19/ | Sept. '19/ | ||||||||||||||||
2019 | 2018 | 2018 | Dec. '18 | Sept. '18 | ||||||||||||||||
Cash and invested assets: | ||||||||||||||||||||
Available for sale fixed maturity securities, cash | ||||||||||||||||||||
and other invested assets, carried at fair value | $ | 9,381.6 | $ | 8,761.7 | $ | 8,895.2 | 7.1 | % | 5.5 | % | ||||||||||
Equity securities, carried at fair value | 3,770.6 | 3,380.9 | 3,474.3 | 11.5 | 8.5 | |||||||||||||||
Held to maturity, carried at amortized cost | 1,027.5 | 1,044.8 | 1,050.5 | -1.7 | -2.2 | |||||||||||||||
Total per balance sheet | $ | 14,179.7 | $ | 13,187.4 | $ | 13,420.1 | 7.5 | % | 5.7 | % | ||||||||||
Total at cost for all | $ | 13,126.2 | $ | 12,950.6 | $ | 12,886.1 | 1.4 | % | 1.9 | % | ||||||||||
Shareholders' equity: Total | $ | 5,793.9 | $ | 5,146.2 | $ | 5,311.2 | 12.6 | % | 9.1 | % | ||||||||||
Per common share | $ | 19.31 | $ | 17.23 | $ | 17.76 | 12.1 | % | 8.7 | % | ||||||||||
Composition of shareholders' equity per share: | ||||||||||||||||||||
Equity before items below | $ | 16.95 | $ | 17.04 | $ | 16.76 | -0.5 | % | 1.1 | % | ||||||||||
Unrealized investment gains (losses) and other | ||||||||||||||||||||
accumulated comprehensive income (loss) | 2.36 | 0.19 | 1.00 | |||||||||||||||||
Total | $ | 19.31 | $ | 17.23 | $ | 17.76 | 12.1 | % | 8.7 | % | ||||||||||
Segmented composition of | ||||||||||||||||||||
shareholders' equity per share: | ||||||||||||||||||||
Excluding run-off segment | $ | 17.70 | $ | 15.73 | $ | 16.26 | 12.5 | % | 8.9 | % | ||||||||||
RFIG run-off segment | 1.61 | 1.50 | 1.50 | |||||||||||||||||
Consolidated total | $ | 19.31 | $ | 17.23 | $ | 17.76 | 12.1 | % | 8.7 | % |
Shareholders' Equity Per Share | |||||||||||||||
Quarter | Year | ||||||||||||||
Ended | Nine Months Ended | Ended | |||||||||||||
Sept. 30, | September 30, | Dec. 31, | |||||||||||||
2019 | 2019 | 2018 | 2018 | ||||||||||||
Beginning balance | $ | 19.68 | $ | 17.23 | $ | 17.72 | $ | 17.72 | |||||||
Changes in shareholders' equity: | |||||||||||||||
Net income (loss) excluding net investment gains (losses) | 0.51 | 1.37 | 1.43 | 1.89 | |||||||||||
Net of tax realized investment gains (losses): | |||||||||||||||
From actual transactions | 0.02 | 0.09 | 0.15 | 0.16 | |||||||||||
From impairments | — | (0.01 | ) | — | — | ||||||||||
Subtotal | 0.02 | 0.08 | 0.15 | 0.16 | |||||||||||
Net of tax unrealized investment gains (losses) on | |||||||||||||||
securities carried at fair value: | |||||||||||||||
Reported in net income (loss) | 0.15 | 1.15 | 0.05 | (0.79 | ) | ||||||||||
Reported as other comprehensive income (loss) | 0.16 | 0.99 | (0.62 | ) | (0.59 | ) | |||||||||
Subtotal | 0.31 | 2.14 | (0.57 | ) | (1.38 | ) | |||||||||
Total net of tax realized and unrealized | |||||||||||||||
investment gains (losses) | 0.33 | 2.22 | (0.42 | ) | (1.22 | ) | |||||||||
Cash dividends (a) | (1.2000 | ) | (1.6000 | ) | (0.5850 | ) | (0.7800 | ) | |||||||
Debt conversion, stock issuance, and other | (0.01 | ) | 0.09 | (0.38 | ) | (0.38 | ) | ||||||||
Net change | (0.37 | ) | 2.08 | 0.04 | (0.49 | ) | |||||||||
Ending balance | $ | 19.31 | $ | 19.31 | $ | 17.76 | $ | 17.23 | |||||||
Percentage change for the period | -1.9 | % | 12.1 | % | 0.2 | % | -2.8 | % |
Capitalization | |||||||||||
September 30, | December 31, | September 30, | |||||||||
2019 | 2018 | 2018 | |||||||||
Debt: | |||||||||||
4.875% Senior Notes due 2024 | $ | 397.2 | $ | 396.8 | $ | 396.6 | |||||
3.875% Senior Notes due 2026 | 546.1 | 545.7 | 545.5 | ||||||||
Other miscellaneous debt | 30.4 | 38.8 | 38.8 | ||||||||
Total debt | 973.7 | 981.4 | 981.1 | ||||||||
Common shareholders' equity | 5,793.9 | 5,146.2 | 5,311.2 | ||||||||
Total capitalization | $ | 6,767.6 | $ | 6,127.6 | $ | 6,292.3 | |||||
Capitalization ratios: | |||||||||||
Debt | 14.4 | % | 16.0 | % | 15.6 | % | |||||
Common shareholders' equity | 85.6 | 84.0 | 84.4 | ||||||||
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) | |||||
September 30, | December 31, | ||||
2019 | 2018 | ||||
Aaa | 22.7 | % | 20.9 | % | |
Aa | 12.8 | 12.8 | |||
A | 30.9 | 31.5 | |||
Baa | 29.0 | 29.1 | |||
Total investment grade | 95.4 | 94.3 | |||
All other (b) | 4.6 | 5.7 | |||
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 | |||||||||||
September 30, 2019 | Amortized Cost | Gross Unrealized Losses | |||||||||
Fixed Maturity Securities by Industry Concentration: | |||||||||||
Energy | $ | 46.9 | $ | 2.9 | |||||||
Natural Gas | 14.4 | .5 | |||||||||
Basic Industry | 11.7 | .1 | |||||||||
Industrial | 15.4 | .1 | |||||||||
Other (includes 2 industry groups) | 10.7 | — | |||||||||
Total | $ | 99.4 | (c) | $ | 3.9 |
(c) | Represents 1.1% of the total fixed maturity securities portfolio. |
Gross Unrealized Losses Stratified by Industry Concentration for Investment Grade Fixed Maturity Securities | |||||||||||
September 30, 2019 | Amortized Cost | Gross Unrealized Losses | |||||||||
Fixed Maturity Securities by Industry Concentration: | |||||||||||
U.S. Governments & Agencies | $ | 302.4 | $ | .2 | |||||||
Municipals | 48.5 | .1 | |||||||||
Canadian Governments | 26.0 | — | |||||||||
Banking | 8.4 | — | |||||||||
Other (includes 14 industry groups) | 111.3 | .1 | |||||||||
Total | $ | 496.9 | (d) | $ | .6 |
(d) | Represents 5.3% of the total fixed maturity securities portfolio. |
Gross Unrealized Losses Stratified by Industry Concentration for Equity Securities | |||||||||||
September 30, 2019 | Cost | Gross Unrealized Losses | |||||||||
Equity Securities by Industry Concentration: | |||||||||||
Energy | $ | 335.3 | $ | 60.5 | |||||||
Consumer Staples | 103.5 | 21.9 | |||||||||
Industrial | 70.2 | 5.4 | |||||||||
Health Care | 80.2 | 3.8 | |||||||||
Other (includes 4 industry groups) | 170.4 | 7.7 | |||||||||
Total | $ | 759.8 | (e) | $ | 99.4 | (f) |
(e) | Represents 25.4% of the total equity securities portfolio. |
(f) | Represents 3.3% of the cost of the total equity securities portfolio, while gross unrealized gains represent 29.5% of the portfolio. |
Gross Unrealized Losses Stratified by Maturity Ranges for All Fixed Maturity Securities | ||||||||||||||||||
Amortized Cost of Fixed Maturity Securities | Gross Unrealized Losses | |||||||||||||||||
September 30, 2019 | All | Non- Investment Grade Only | All | Non- Investment Grade Only | ||||||||||||||
Maturity Ranges: | ||||||||||||||||||
Due in one year or less | $ | 236.1 | $ | 10.7 | $ | .4 | $ | — | ||||||||||
Due after one year through five years | 286.4 | 25.0 | 1.2 | .9 | ||||||||||||||
Due after five years through ten years | 71.3 | 63.6 | 2.9 | 2.9 | ||||||||||||||
Due after ten years | 2.4 | — | — | — | ||||||||||||||
Total | $ | 596.3 | $ | 99.4 | $ | 4.5 | $ | 3.9 |
Gross Unrealized Losses Stratified by Duration and Amount of Unrealized Losses | ||||||||||||||||||||
Amount of Gross Unrealized Losses | ||||||||||||||||||||
September 30, 2019 | Less than 20% of Cost | 20% to 50% of Cost | More than 50% of Cost | Total Gross Unrealized Loss | ||||||||||||||||
Number of Months in Unrealized Loss Position: | ||||||||||||||||||||
Fixed Maturity Securities: | ||||||||||||||||||||
One to six months | $ | 2.2 | $ | — | $ | — | $ | 2.2 | ||||||||||||
Seven to twelve months | .1 | — | — | .1 | ||||||||||||||||
More than twelve months | 2.2 | — | — | 2.2 | ||||||||||||||||
Total | $ | 4.5 | $ | — | $ | — | $ | 4.5 | ||||||||||||
Number of Issues in Unrealized Loss Position: | ||||||||||||||||||||
Fixed Maturity Securities: | ||||||||||||||||||||
One to six months | 14 | — | — | 14 | ||||||||||||||||
Seven to twelve months | 1 | — | — | 1 | ||||||||||||||||
More than twelve months | 106 | — | — | 106 | ||||||||||||||||
Total | 121 | — | — | 121 | (g) |
(g) | At September 30, 2019 the number of issues in an unrealized loss position represent 6.5% of the total number of such fixed maturity issues held by the Company. |
Age Distribution of Fixed Maturity Securities | |||||||||
September 30, | December 31, | ||||||||
2019 | 2018 | ||||||||
Maturity Ranges: | |||||||||
Due in one year or less | 9.1 | % | 7.0 | % | |||||
Due after one year through five years | 57.1 | 51.6 | |||||||
Due after five years through ten years | 33.4 | 40.7 | |||||||
Due after ten years | .4 | .7 | |||||||
Total | 100.0 | % | 100.0 | % | |||||
Average Maturity in Years | 4.1 | 4.5 | |||||||
Duration (h) | 3.6 | 4.1 |
(h) | Duration is used as a measure of bond price sensitivity to interest rate changes. A duration of 3.6 as of September 30, 2019 implies that a 100 basis point parallel increase in interest rates from current levels would result in a possible decline in the fair value of the long-term fixed maturity investment portfolio of approximately 3.6%. |
Composition of Unrealized Gains (Losses) | |||||||||||
September 30, | December 31, | ||||||||||
2019 | 2018 | ||||||||||
Available for Sale Fixed Maturity Securities: | |||||||||||
Amortized cost | $ | 8,394.0 | $ | 8,285.0 | |||||||
Estimated fair value | 8,666.7 | 8,182.8 | |||||||||
Net unrealized gains (losses) | $ | 272.7 | $ | (102.1 | ) | ||||||
Components of net unrealized gains (losses): | |||||||||||
Gross unrealized gains | $ | 277.1 | $ | 37.1 | |||||||
Gross unrealized losses | (4.4 | ) | (139.2 | ) | |||||||
Net unrealized gains (losses) | $ | 272.7 | $ | (102.1 | ) | ||||||
Equity Securities: | |||||||||||
Original cost | $ | 2,989.4 | $ | 3,039.1 | |||||||
Estimated fair value | 3,770.6 | 3,380.9 | |||||||||
Net unrealized gains (losses)(i) | $ | 781.2 | $ | 341.8 | |||||||
Components of net unrealized gains (losses): | |||||||||||
Gross unrealized gains | $ | 880.6 | $ | 517.3 | |||||||
Gross unrealized losses | (99.4 | ) | (175.4 | ) | |||||||
Net unrealized gains (losses)(i) | $ | 781.2 | $ | 341.8 |
(i) | Unrealized gains and losses from changes in fair value of equity securities are included in total realized and unrealized investment gains (losses) in the consolidated statements of income. |
RESULTS OF OPERATIONS |
Revenues: Premiums & Fees |
Earned Premiums and Fees | ||||||||||||||||||||||
General | Title | RFIG Run-off | Other | Total | % Change from prior period | |||||||||||||||||
Years Ended December 31: | ||||||||||||||||||||||
2016 | $ | 2,936.3 | $ | 2,206.6 | $ | 170.0 | $ | 20.1 | $ | 5,333.2 | 3.0 | % | ||||||||||
2017 | 3,110.8 | 2,287.2 | 122.9 | 18.8 | 5,539.7 | 3.9 | ||||||||||||||||
2018 | 3,277.1 | 2,336.1 | 75.9 | 14.6 | 5,703.9 | 3.0 | ||||||||||||||||
Nine Months Ended September 30: | ||||||||||||||||||||||
2018 | 2,441.3 | 1,743.6 | 59.2 | 11.2 | 4,255.5 | 3.9 | ||||||||||||||||
2019 | 2,551.9 | 1,772.3 | 45.8 | 10.2 | 4,380.4 | 2.9 | ||||||||||||||||
Quarters Ended September 30: | ||||||||||||||||||||||
2018 | 841.5 | 640.7 | 18.2 | 4.2 | 1,504.8 | 5.0 | ||||||||||||||||
2019 | $ | 870.2 | $ | 673.8 | $ | 14.2 | $ | 3.3 | $ | 1,561.7 | 3.8 | % |
General Insurance Earned Premiums by Type of Coverage | |||||||||||||||||
Commercial Automobile (mostly trucking) | Workers' Compensation | Financial Indemnity | Inland Marine and Property | General Liability | Other | ||||||||||||
Years Ended December 31: | |||||||||||||||||
2016 | 33.7 | % | 36.5 | % | 4.3 | % | 7.4 | % | 5.6 | % | 12.5 | % | |||||
2017 | 34.6 | 33.6 | 4.9 | 7.6 | 6.3 | 13.0 | |||||||||||
2018 | 36.8 | 31.1 | 5.3 | 7.7 | 6.2 | 12.9 | |||||||||||
Nine Months Ended September 30: | |||||||||||||||||
2018 | 36.4 | 31.2 | 5.3 | 7.7 | 6.2 | 13.2 | |||||||||||
2019 | 37.3 | 29.1 | 6.1 | 7.5 | 6.6 | 13.4 | |||||||||||
Quarters Ended September 30: | |||||||||||||||||
2018 | 36.9 | 30.6 | 5.3 | 7.7 | 6.0 | 13.5 | |||||||||||
2019 | 37.1 | % | 28.3 | % | 6.5 | % | 7.5 | % | 6.5 | % | 14.1 | % |
Title Premium and Fee Production by Source | |||||
Direct Operations | Independent Title Agents & Other | ||||
Years Ended December 31: | |||||
2016 | 27.9 | % | 72.1 | % | |
2017 | 26.9 | 73.1 | |||
2018 | 26.1 | 73.9 | |||
Nine Months Ended September 30: | |||||
2018 | 26.2 | 73.8 | |||
2019 | 28.0 | 72.0 | |||
Quarters Ended September 30: | |||||
2018 | 25.3 | 74.7 | |||
2019 | 28.0 | % | 72.0 | % |
Earned Premiums | Persistency | ||||||||||||
Premium and Persistency Trends by Type: | Direct | Net | Traditional Primary | Bulk | |||||||||
Years Ended December 31: | |||||||||||||
2016 | $ | 157.1 | $ | 154.1 | 77.7 | % | 72.8 | % | |||||
2017 | 110.4 | 109.8 | 77.9 | 78.2 | |||||||||
2018 | 74.4 | 74.4 | 79.7 | 76.3 | |||||||||
Nine Months Ended September 30: | |||||||||||||
2018 | 58.0 | 58.0 | 78.5 | 74.9 | |||||||||
2019 | 45.5 | 45.5 | 80.8 | % | 84.8 | % | |||||||
Quarters Ended September 30: | |||||||||||||
2018 | 17.8 | 17.8 | |||||||||||
2019 | $ | 14.2 | $ | 14.2 |
Net Risk in Force | |||||||||||||||
Net Risk in Force By Type: | Traditional Primary | Bulk | Other | Total | |||||||||||
As of December 31: | |||||||||||||||
2016 | $ | 4,987.9 | $ | 359.5 | $ | 20.5 | $ | 5,367.9 | |||||||
2017 | 3,888.0 | 292.4 | 12.1 | 4,192.6 | |||||||||||
2018 | 3,098.3 | 235.3 | 11.2 | 3,345.0 | |||||||||||
As of September 30: | |||||||||||||||
2018 | 3,254.9 | 246.1 | 11.2 | 3,512.3 | |||||||||||
2019 | $ | 2,621.3 | $ | 208.3 | $ | 3.6 | $ | 2,833.3 |
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: | |||||||||||
2016 | 7.2 | % | 30.5 | % | 61.5 | % | .8 | % | |||
2017 | 7.5 | 31.5 | 60.2 | .8 | |||||||
2018 | 7.9 | 32.2 | 59.1 | .8 | |||||||
As of September 30: | |||||||||||
2018 | 7.8 | 32.0 | 59.4 | .8 | |||||||
2019 | 8.2 | % | 32.8 | % | 58.2 | % | .8 | % | |||
Bulk(a): | |||||||||||
As of December 31: | |||||||||||
2016 | 29.9 | % | 32.0 | % | 38.0 | % | .1 | % | |||
2017 | 31.8 | 31.7 | 36.3 | .2 | |||||||
2018 | 33.6 | 31.5 | 34.8 | .1 | |||||||
As of September 30: | |||||||||||
2018 | 33.4 | 31.4 | 35.0 | .2 | |||||||
2019 | 33.8 | % | 31.4 | % | 34.7 | % | .1 | % |
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: | |||||||||||
2016 | 3.8 | % | 32.1 | % | 30.6 | % | 33.5 | % | |||
2017 | 4.0 | 30.9 | 30.5 | 34.6 | |||||||
2018 | 4.1 | 30.7 | 29.7 | 35.5 | |||||||
As of September 30: | |||||||||||
2018 | 4.0 | 30.3 | 30.2 | 35.5 | |||||||
2019 | 4.2 | % | 30.9 | % | 28.8 | % | 36.1 | % | |||
Bulk(a): | |||||||||||
As of December 31: | |||||||||||
2016 | 46.5 | % | 29.0 | % | 12.3 | % | 12.2 | % | |||
2017 | 45.3 | 29.9 | 12.6 | 12.2 | |||||||
2018 | 43.4 | 30.9 | 13.1 | 12.6 | |||||||
As of September 30: | |||||||||||
2018 | 43.4 | 30.9 | 13.1 | 12.6 | |||||||
2019 | 43.0 | % | 31.2 | % | 13.2 | % | 12.6 | % |
(a) | Bulk pool risk in-force, which represented 7.5% of total bulk risk in-force at September 30, 2019 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: | |||||||||||||||||||||||||||||
2016 | 6.4 | % | 7.8 | % | 6.0 | % | 5.8 | % | 4.8 | % | 4.6 | % | 4.4 | % | 4.4 | % | 3.6 | % | 3.8 | % | |||||||||
2017 | 5.9 | 8.1 | 6.0 | 6.1 | 4.8 | 4.4 | 4.3 | 4.6 | 3.7 | 4.2 | |||||||||||||||||||
2018 | 5.5 | 8.5 | 6.0 | 6.4 | 4.9 | 4.1 | 4.3 | 4.8 | 3.8 | 4.6 | |||||||||||||||||||
As of September 30: | |||||||||||||||||||||||||||||
2018 | 5.6 | 8.4 | 6.0 | 6.4 | 4.8 | 4.2 | 4.3 | 4.8 | 3.8 | 4.5 | |||||||||||||||||||
2019 | 5.2 | % | 8.7 | % | 6.1 | % | 6.7 | % | 5.0 | % | 3.9 | % | 4.2 | % | 5.0 | % | 3.9 | % | 4.8 | % |
Bulk (a) | |||||||||||||||||||||||||||||
TX | FL | GA | IL | CA | NC | PA | NY | OH | MD | ||||||||||||||||||||
As of December 31: | |||||||||||||||||||||||||||||
2016 | 5.3 | % | 8.6 | % | 4.9 | % | 4.2 | % | 12.4 | % | 2.5 | % | 3.7 | % | 7.4 | % | 4.2 | % | 2.6 | % | |||||||||
2017 | 5.4 | 8.3 | 5.1 | 4.4 | 12.4 | 2.5 | 3.8 | 7.8 | 4.4 | 2.7 | |||||||||||||||||||
2018 | 5.6 | 8.2 | 5.4 | 4.6 | 12.4 | 2.7 | 4.0 | 7.1 | 4.7 | 2.8 | |||||||||||||||||||
As of September 30: | |||||||||||||||||||||||||||||
2018 | 5.6 | 8.2 | 5.3 | 4.6 | 12.2 | 2.7 | 3.9 | 7.2 | 4.7 | 2.8 | |||||||||||||||||||
2019 | 5.5 | % | 8.0 | % | 5.6 | % | 4.7 | % | 12.5 | % | 2.7 | % | 3.7 | % | 7.4 | % | 4.9 | % | 2.9 | % |
Risk in Force Distribution By Level of Documentation: | Full Documentation | Reduced Documentation | |||
Traditional Primary: | |||||
As of December 31: | |||||
2016 | 92.4 | % | 7.6 | % | |
2017 | 92.3 | 7.7 | |||
2018 | 92.2 | 7.8 | |||
As of September 30: | |||||
2018 | 92.2 | 7.8 | |||
2019 | 92.1 | % | 7.9 | % | |
Bulk (a): | |||||
As of December 31: | |||||
2016 | 68.0 | % | 32.0 | % | |
2017 | 69.4 | 30.6 | |||
2018 | 71.8 | 28.2 | |||
As of September 30: | |||||
2018 | 71.7 | 28.3 | |||
2019 | 71.9 | % | 28.1 | % |
(a) | Bulk pool risk in-force, which represented 7.5% of total bulk risk in-force at September 30, 2019, 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: | |||||
2016 | 97.2 | % | 2.8 | % | |
2017 | 97.2 | 2.8 | |||
2018 | 97.2 | 2.8 | |||
As of September 30: | |||||
2018 | 97.2 | 2.8 | |||
2019 | 97.1 | % | 2.9 | % | |
Bulk (a): | |||||
As of December 31: | |||||
2016 | 71.3 | % | 28.7 | % | |
2017 | 70.1 | 29.9 | |||
2018 | 68.6 | 31.4 | |||
As of September 30: | |||||
2018 | 69.1 | 30.9 | |||
2019 | 68.1 | % | 31.9 | % |
(a) | Bulk pool risk in-force, which represented 7.5% of total bulk risk in-force at September 30, 2019, has been allocated pro-rata based on insurance in-force. |
Net CCI Earned Premiums | Risk in Force | ||||||
Years Ended December 31: | |||||||
2016 | $ | 15.8 | $ | 699.7 | |||
2017 | 13.0 | 140.9 | |||||
2018 | 1.5 | 70.1 | |||||
Nine Months Ended September 30: | |||||||
2018 | 1.2 | 121.9 | |||||
2019 | .5 | $ | 56.1 | ||||
Quarters Ended September 30: | |||||||
2018 | .2 | ||||||
2019 | $ | — |
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: | |||||||||||||||||||||||||||
2017 | $ | 9,702.7 | $ | 1,106.2 | $ | 545.9 | $ | 1,206.9 | $ | 12,561.9 | $ | 756.1 | $ | 13,318.0 | |||||||||||||
2018 | 10,162.3 | 1,105.6 | 583.6 | 904.3 | 12,755.9 | 238.6 | 12,994.6 | ||||||||||||||||||||
As of September 30: | |||||||||||||||||||||||||||
2018 | 10,083.6 | 1,100.4 | 612.3 | 878.0 | 12,674.3 | 536.6 | 13,211.0 | ||||||||||||||||||||
2019 | $ | 10,493.0 | $ | 1,137.9 | $ | 519.5 | $ | 770.7 | $ | 12,921.2 | $ | 1,054.1 | $ | 13,975.4 |
Net Investment Income | Yield at | ||||||||||||||||||||||||
General | Title | RFIG Run-off | Corporate and Other | Total | Cost | Fair Value | |||||||||||||||||||
Years Ended | |||||||||||||||||||||||||
December 31: | |||||||||||||||||||||||||
2016 | $ | 312.1 | $ | 36.2 | $ | 23.2 | $ | 15.4 | $ | 387.0 | 3.34 | % | 3.23 | % | |||||||||||
2017 | 318.9 | 37.3 | 21.7 | 31.4 | 409.4 | 3.32 | 3.14 | ||||||||||||||||||
2018 | 341.0 | 38.8 | 20.1 | 31.7 | 431.8 | 3.41 | 3.28 | ||||||||||||||||||
Nine Months Ended | |||||||||||||||||||||||||
September 30: | |||||||||||||||||||||||||
2018 | 253.8 | 28.8 | 15.4 | 23.4 | 321.5 | 3.40 | 3.23 | ||||||||||||||||||
2019 | 265.8 | 30.8 | 13.2 | 27.9 | 337.8 | 3.51 | 3.34 | ||||||||||||||||||
Quarters Ended | |||||||||||||||||||||||||
September 30: | |||||||||||||||||||||||||
2018 | 86.1 | 9.8 | 4.6 | 8.1 | 108.7 | 3.46 | 3.33 | ||||||||||||||||||
2019 | $ | 88.7 | $ | 10.2 | $ | 4.2 | $ | 9.4 | $ | 112.7 | 3.48 | % | 3.24 | % |
Revenues: Net Investment Gains (Losses) |
Realized Investment Gains (Losses) from Actual Transactions | Impairment Losses | Unrealized Gains (Losses) from Changes in Fair Value of Equity Securities | |||||||||||||||||||||||||||||
Fixed Maturity Securities | Equity Securities and Miscel- laneous Investments | Total | Fixed Maturity Securities | Miscel- laneous Investments | Total | Investment Gains (Losses) | |||||||||||||||||||||||||
Years Ended | |||||||||||||||||||||||||||||||
December 31: | |||||||||||||||||||||||||||||||
2016 | $ | 7.8 | $ | 69.9 | $ | 77.8 | $ | (4.9 | ) | $ | — | $ | (4.9 | ) | $ | — | $ | 72.8 | |||||||||||||
2017 | 16.6 | 194.9 | 211.6 | — | — | — | — | 211.6 | |||||||||||||||||||||||
2018 | (4.8 | ) | 63.1 | 58.2 | — | — | — | (293.8 | ) | (235.6 | ) | ||||||||||||||||||||
Nine Months Ended | |||||||||||||||||||||||||||||||
September 30: | |||||||||||||||||||||||||||||||
2018 | (1.0 | ) | 55.9 | 54.8 | — | — | — | 17.7 | 72.6 | ||||||||||||||||||||||
2019 | (6.5 | ) | 37.8 | 31.3 | (2.0 | ) | — | (2.0 | ) | 439.3 | 468.7 | ||||||||||||||||||||
Quarters Ended | |||||||||||||||||||||||||||||||
September 30: | |||||||||||||||||||||||||||||||
2018 | (1.2 | ) | 8.5 | 7.3 | — | — | — | 128.4 | 135.7 | ||||||||||||||||||||||
2019 | $ | (5.1 | ) | $ | 11.4 | $ | 6.3 | $ | — | $ | — | $ | — | $ | 57.3 | $ | 63.6 |
Expenses: Benefits and Claims |
Claim and Loss Adjustment Expense Reserves | ||||||||||||||||||
September 30, 2019 | December 31, 2018 | |||||||||||||||||
Gross | Net | Gross | Net | |||||||||||||||
Workers' compensation | $ | 4,925.1 | $ | 3,100.0 | $ | 4,864.4 | $ | 3,090.0 | ||||||||||
General liability | 1,205.0 | 579.5 | 1,117.7 | 556.1 | ||||||||||||||
Commercial automobile (mostly trucking) | 1,865.4 | 1,354.1 | 1,675.2 | 1,264.9 | ||||||||||||||
Other coverages | 899.4 | 658.6 | 870.6 | 624.5 | ||||||||||||||
Unallocated loss adjustment expense reserves | 250.0 | 247.7 | 237.5 | 230.4 | ||||||||||||||
Total general insurance reserves | 9,145.1 | 5,940.1 | 8,765.6 | 5,766.1 | ||||||||||||||
Title | 534.6 | 534.6 | 533.4 | 533.4 | ||||||||||||||
RFIG Run-off | 124.6 | 124.6 | 154.5 | 154.5 | ||||||||||||||
Life and accident | 13.0 | 8.3 | 17.7 | 10.8 | ||||||||||||||
Total claim and loss adjustment expense reserves | $ | 9,817.4 | $ | 6,607.8 | $ | 9,471.2 | $ | 6,464.9 | ||||||||||
Asbestosis and environmental claim reserves included | ||||||||||||||||||
in the above general insurance reserves: | ||||||||||||||||||
Amount | $ | 106.8 | $ | 74.5 | $ | 105.8 | $ | 74.4 | ||||||||||
% of total general insurance reserves | 1.2 | % | 1.3 | % | 1.2 | % | 1.3 | % |
September 30, | September 30, | December 31, | December 31, | ||||||||||||
2019 | 2018 | 2018 | 2017 | ||||||||||||
Estimated reduction in beginning reserve | $ | 3.2 | $ | 19.0 | $ | 19.0 | $ | 29.6 | |||||||
Total incurred claims and settlement expenses | |||||||||||||||
reduced (increased) by changes in | |||||||||||||||
estimated rescissions: | |||||||||||||||
Current year | .3 | .7 | .9 | 6.2 | |||||||||||
Prior year | (1.2 | ) | (12.6 | ) | (12.3 | ) | (3.7 | ) | |||||||
Sub-total | (.9 | ) | (11.9 | ) | (11.4 | ) | 2.5 | ||||||||
Estimated rescission reduction in paid claims | (.7 | ) | (3.5 | ) | (4.4 | ) | (13.1 | ) | |||||||
Estimated reduction in ending reserve | $ | 1.6 | $ | 3.6 | $ | 3.2 | $ | 19.0 |
General | Title | RFIG Run-off | Consolidated | ||||||||
Years Ended December 31: | |||||||||||
2016 | 73.0 | % | 3.8 | % | 60.4 | % | 44.0 | % | |||
2017 | 71.8 | .9 | 160.9 | 44.7 | |||||||
2018 | 72.2 | 2.1 | 39.4 | 43.1 | |||||||
Nine Months Ended September 30: | |||||||||||
2018 | 71.2 | 2.6 | 40.2 | 42.8 | |||||||
2019 | 71.4 | 3.0 | 51.2 | 43.5 | |||||||
Quarters Ended September 30: | |||||||||||
2018 | 70.7 | 2.4 | 31.2 | 41.2 | |||||||
2019 | 72.9 | % | 3.1 | % | 53.6 | % | 42.5 | % |
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: | ||||||||||||||||||||
2016 | 73.0 | % | 79.4 | % | 76.1 | % | 45.5 | % | 60.9 | % | 77.5 | % | 62.2 | % | ||||||
2017 | 71.8 | 76.8 | 75.5 | 62.1 | 59.3 | 73.1 | 59.0 | |||||||||||||
2018 | 72.2 | 79.3 | 70.7 | 73.8 | 62.8 | 68.9 | 60.1 | |||||||||||||
Nine Months Ended | ||||||||||||||||||||
September 30: | ||||||||||||||||||||
2018 | 71.2 | 77.9 | 71.8 | 65.7 | 58.5 | 67.8 | 59.4 | |||||||||||||
2019 | 71.4 | 81.5 | 65.2 | 63.4 | 63.5 | 72.1 | 62.8 | |||||||||||||
Quarters Ended | ||||||||||||||||||||
September 30: | ||||||||||||||||||||
2018 | 70.7 | 79.0 | 69.4 | 57.8 | 57.5 | 61.4 | 61.3 | |||||||||||||
2019 | 72.9 | % | 85.6 | % | 55.4 | % | 73.1 | % | 61.6 | % | 77.7 | % | 71.7 | % |
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: | |||||||||||||||||
2016 | $ | 45,478 | $ | 48,158 | 10.53 | % | 25.78 | % | $ | 1.4 | |||||||
2017 | 47,267 | 51,446 | 10.52 | 23.31 | 13.1 | ||||||||||||
2018 | 47,055 | 54,809 | 9.38 | 16.94 | 4.4 | ||||||||||||
Nine Months Ended September 30: | |||||||||||||||||
2018 | 47,308 | 55,949 | 9.27 | 17.45 | 3.5 | ||||||||||||
2019 | 49,633 | 57,512 | 9.03 | % | 15.40 | % | .7 | ||||||||||
Quarters Ended September 30: | |||||||||||||||||
2018 | 45,624 | 54,448 | .8 | ||||||||||||||
2019 | $ | 51,939 | $ | 57,195 | $ | .2 |
(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: | |||||||||||||||||||||||||||||
2016 | 9.1 | % | 11.8 | % | 8.7 | % | 10.7 | % | 6.1 | % | 8.3 | % | 12.7 | % | 12.8 | % | 23.5 | % | 8.6 | % | |||||||||
2017 | 11.4 | 15.6 | 8.3 | 10.1 | 6.0 | 8.1 | 12.0 | 11.5 | 19.6 | 8.4 | |||||||||||||||||||
2018 | 10.0 | 9.8 | 7.7 | 8.7 | 5.8 | 9.5 | 11.4 | 10.5 | 14.3 | 7.9 | |||||||||||||||||||
As of September 30: | |||||||||||||||||||||||||||||
2018 | 9.4 | 10.2 | 7.3 | 8.7 | 5.5 | 8.9 | 10.8 | 10.9 | 14.6 | 7.6 | |||||||||||||||||||
2019 | 10.1 | % | 7.9 | % | 8.1 | % | 8.1 | % | 5.9 | % | 9.5 | % | 11.1 | % | 10.4 | % | 11.0 | % | 7.2 | % |
Bulk Delinquency Ratios for Top Ten States (b): | |||||||||||||||||||||||||||||
TX | FL | GA | IL | CA | NC | PA | MD | OH | NY | ||||||||||||||||||||
As of December 31: | |||||||||||||||||||||||||||||
2016 | 20.3 | % | 33.7 | % | 19.6 | % | 23.6 | % | 29.1 | % | 22.9 | % | 28.1 | % | 35.8 | % | 14.1 | % | 53.3 | % | |||||||||
2017 | 20.3 | 34.2 | 17.8 | 21.5 | 26.4 | 19.7 | 25.3 | 24.8 | 15.0 | 44.2 | |||||||||||||||||||
2018 | 14.5 | 23.5 | 14.5 | 19.1 | 13.0 | 17.3 | 21.0 | 16.0 | 12.4 | 32.3 | |||||||||||||||||||
As of September 30: | |||||||||||||||||||||||||||||
2018 | 13.6 | 24.7 | 14.5 | 20.6 | 13.4 | 19.1 | 21.6 | 16.1 | 13.7 | 33.8 | |||||||||||||||||||
2019 | 11.1 | % | 19.8 | % | 12.9 | % | 15.4 | % | 9.4 | % | 17.0 | % | 19.1 | % | 13.6 | % | 14.6 | % | 30.5 | % |
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: | |||||||||||||||||||||||||||||
2016 | 9.8 | % | 13.4 | % | 9.1 | % | 11.3 | % | 9.3 | % | 8.5 | % | 13.5 | % | 13.5 | % | 25.6 | % | 27.7 | % | |||||||||
2017 | 12.1 | 16.9 | 8.8 | 10.6 | 9.2 | 8.4 | 12.8 | 12.0 | 21.1 | 25.0 | |||||||||||||||||||
2018 | 10.4 | 10.6 | 8.1 | 9.2 | 6.8 | 9.7 | 12.0 | 10.7 | 15.3 | 21.3 | |||||||||||||||||||
As of September 30: | |||||||||||||||||||||||||||||
2018 | 9.7 | 11.2 | 7.7 | 9.2 | 6.6 | 9.2 | 11.5 | 11.1 | 15.7 | 22.1 | |||||||||||||||||||
2019 | 10.2 | % | 8.7 | % | 8.4 | % | 8.4 | % | 6.4 | % | 9.6 | % | 11.7 | % | 10.5 | % | 11.9 | % | 19.3 | % |
(b) | As determined by risk in force as of September 30, 2019, these 10 states represent approximately 53.5%, 57.9%, and 53.4%, of traditional primary, bulk, and total risk in force, respectively. |
Reported Delinquency Ratio at End of Period | Claim Rescissions and Denials | |||||||||||||||||||
CCI Claim Costs (a) | ||||||||||||||||||||
Paid | Incurred | |||||||||||||||||||
Amount | Ratio (b) | Amount | Ratio (b) | |||||||||||||||||
Years Ended | ||||||||||||||||||||
December 31: | ||||||||||||||||||||
2016 | $ | 11.7 | 74.0 | % | $ | 50.0 | 315.9 | % | 2.0 | % | $ | 10.1 | ||||||||
2017 | 304.2 | N/M | 134.5 | N/M | 2.6 | 5.7 | ||||||||||||||
2018 | 31.6 | N/M | (2.2 | ) | N/M | 1.7 | .4 | |||||||||||||
Nine Months Ended | ||||||||||||||||||||
September 30: | ||||||||||||||||||||
2018 | (.2 | ) | (22.9 | ) | .5 | 42.1 | 2.4 | .3 | ||||||||||||
2019 | (1.3 | ) | (239.6 | ) | (.7 | ) | (134.7 | ) | 1.9 | % | — | |||||||||
Quarters Ended | ||||||||||||||||||||
September 30: | ||||||||||||||||||||
2018 | .1 | 37.6 | .1 | 36.3 | — | |||||||||||||||
2019 | $ | (.4 | ) | (228.7 | )% | $ | (.1 | ) | (70.3 | )% | $ | — |
(a) | Results for the CCI coverages are expected to be immaterial in the remaining run-off periods; effective July 1, 2019, these results are being classified in the General Insurance segment for the third quarter 2019 and all future periods. |
(b) | 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. |
Expenses: Underwriting Acquisition and Other Expenses |
General | Title | RFIG Run-off | Consolidated | ||||||||
Years Ended December 31: | |||||||||||
2016 | 24.8 | % | 87.9 | % | 12.2 | % | 50.6 | % | |||
2017 | 25.5 | 90.0 | 16.6 | 52.0 | |||||||
2018 | 25.0 | 90.0 | 21.5 | 51.6 | |||||||
Nine Months Ended September 30: | |||||||||||
2018 | 25.6 | 89.8 | 21.6 | 51.9 | |||||||
2019 | 25.7 | 89.9 | 25.5 | 51.7 | |||||||
Quarters Ended September 30: | |||||||||||
2018 | 24.9 | 88.5 | 20.8 | 51.9 | |||||||
2019 | 24.8 | % | 87.5 | % | 25.1 | % | 51.9 | % |
Expenses: Total |
General | Title | RFIG Run-off | Consolidated | ||||||||
Years Ended December 31: | |||||||||||
2016 | 97.8 | % | 91.7 | % | 72.6 | % | 94.6 | % | |||
2017 | 97.3 | 90.9 | 177.5 | 96.7 | |||||||
2018 | 97.2 | 92.1 | 60.9 | 94.7 | |||||||
Nine Months Ended September 30: | |||||||||||
2018 | 96.8 | 92.4 | 61.8 | 94.7 | |||||||
2019 | 97.1 | 92.9 | 76.7 | 95.2 | |||||||
Quarters Ended September 30: | |||||||||||
2018 | 95.6 | 90.9 | 52.0 | 93.1 | |||||||
2019 | 97.7 | % | 90.6 | % | 78.7 | % | 94.4 | % |
Expenses: Income Taxes |
End of Management Analysis of Financial Position and Results of Operations |
OTHER INFORMATION |
Item 3 - Quantitative and Qualitative Disclosure About Market Risk |
OLD REPUBLIC INTERNATIONAL CORPORATION |
FORM 10-Q |
PART II - OTHER INFORMATION |
31.1 | Certification by Craig R. Smiddy, 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 Craig R. Smiddy, 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 - The Instance Document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | ||
101.SCH | XBRL Taxonomy Extension Schema | ||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase | ||
101.DEF | XBRL Taxonomy Extension Definition Linkbase | ||
101.LAB | XBRL Taxonomy Extension Label Linkbase | ||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase |
Old Republic International Corporation | |||
(Registrant) | |||
Date: | November 1, 2019 | ||
/s/ Karl W. Mueller | |||
Karl W. Mueller Senior Vice President, Chief Financial Officer, and Principal Accounting Officer |
Exhibit | ||
No. | Description | |
101.INS | XBRL Instance Document - The Instance Document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |
101.SCH | XBRL Taxonomy Extension Schema | |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase | |
101.DEF | XBRL Taxonomy Extension Definition Linkbase | |
101.LAB | XBRL Taxonomy Extension Label Linkbase | |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase |
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 September 30, 2019 (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. |
Losses, Claims and Settlement Expenses (Tables) |
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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.
Summary of changes in aggregate reserves for claims and related costs:
__________
coverage rescissions and claims denials. Estimates of coverage rescissions and claim denials are no longer material to Old Republic's consolidated financial statements. |
Investments Textuals (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2019 |
Sep. 30, 2018 |
Sep. 30, 2019 |
Sep. 30, 2018 |
|
Debt Securities, Available-for-sale [Line Items] | ||||
Net Unrealized Gains Losses Recognized from Changes in Fair Value of Equity Securities Held | $ 78.0 | $ 137.1 | $ 438.5 | $ 67.4 |
Unrealized from changes in fair value of equity securities | 57.3 | 128.4 | 439.3 | 17.7 |
Realized Investment Gains Losses From Impairment | $ 0.0 | $ 0.0 | $ 2.0 | $ 0.0 |
Debt Financial Liabilities Disclosed, but not Carried, at Fair Value (Details) - USD ($) $ in Millions |
Sep. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt | $ 973.7 | $ 981.4 |
Estimate of Fair Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt | 1,051.9 | 977.9 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt | 0.0 | 0.0 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt | 1,021.5 | 939.0 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt | 30.4 | 38.8 |
Reported Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt | $ 973.7 | $ 981.4 |
Cover Page |
9 Months Ended |
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Sep. 30, 2019
shares
| |
Entity Information [Line Items] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Sep. 30, 2019 |
Document Transition Report | false |
Entity File Number | 001-10607 |
Entity Registrant Name | OLD REPUBLIC INTERNATIONAL CORPORATION |
Entity Central Index Key | 0000074260 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | Q3 |
Amendment Flag | false |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 36-2678171 |
Entity Address, Address Line One | 307 North Michigan Avenue |
Entity Address, City or Town | Chicago |
Entity Address, State or Province | IL |
Entity Address, Postal Zip Code | 60601 |
City Area Code | 312 |
Local Phone Number | 346-8100 |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Title of 12(b) Security | Common Stock / $1 par value |
Entity Common Stock, Shares Outstanding | 303,570,106 |
Trading Symbol | ORI |
Security Exchange Name | NYSE |
Commitments and Contingent Liabilities - Summary of Future Undiscounted Lease Payments (Details) - USD ($) $ in Millions |
Sep. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Operating Lease Liabilities, Payments Due After Adoption | ||
Year 1 | $ 58.7 | |
Year 2 | 48.4 | |
Year 3 | 39.7 | |
Year 4 | 31.4 | |
Year 5 | 22.0 | |
Thereafter | 99.1 | |
Total | 299.6 | |
Discount | (64.0) | |
Lease liability | $ 235.6 | |
Operating Leases, Future Minimum Payments Due, Before Adoption | ||
Year 1 | $ 60.4 | |
Year 2 | 48.9 | |
Year 3 | 39.5 | |
Year 4 | 32.7 | |
Year 5 | 24.0 | |
Thereafter | 103.6 | |
Total | $ 309.4 |
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2019 |
Sep. 30, 2018 |
Sep. 30, 2019 |
Sep. 30, 2018 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 202.8 | $ 275.2 | $ 780.6 | $ 477.0 |
Unrealized gains (losses) on securities: | ||||
Unrealized gains (losses) on securities before reclassifications | 53.3 | (24.6) | 366.6 | (236.3) |
Amounts reclassified as realized investment gains from sales in the statements of income | 7.3 | 1.2 | 10.7 | (0.4) |
Pretax unrealized gains (losses) on securities | 60.7 | (23.4) | 377.3 | (236.8) |
Less: Deferred income taxes (credits) | 12.7 | (4.9) | 79.5 | (49.8) |
Net unrealized gains (losses) on securities, net of tax | 48.0 | (18.4) | 297.8 | (186.9) |
Defined benefit pension plans: | ||||
Net pension adjustment before reclassifications | 0.0 | 0.0 | (2.6) | 0.0 |
Amounts reclassified as underwriting, acquisition, and other expenses in the statements of income | 1.0 | 0.8 | 3.0 | 2.4 |
Pretax net adjustment related to defined benefit pension plans | 1.0 | 0.8 | 0.4 | 2.4 |
Deferred income taxes (credits) | 0.2 | 0.1 | 0.1 | 0.5 |
Net adjustment related to defined benefit pension plans, net of tax | 0.8 | 0.6 | 0.3 | 1.9 |
Foreign currency translation and other adjustments | (1.6) | 2.6 | 3.8 | (4.7) |
Total other comprehensive income (loss) | 47.2 | (15.1) | 302.0 | (189.7) |
Comprehensive Income (Loss) | $ 250.1 | $ 260.0 | $ 1,082.7 | $ 287.3 |
Investments Fixed Maturity Securities Stratified by Contractual Maturity (Details) - USD ($) $ in Millions |
Sep. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Investments [Abstract] | ||
Available for sale, Due in one year or less (amortized cost) | $ 860.3 | |
Available for sale, Due after one year through five years (amortized cost) | 5,072.6 | |
Available for sale, Due after five years through ten years (amortized cost) | 2,428.0 | |
Available for sale, Due after ten years (amortized cost) | 32.9 | |
Available for sale, Fixed maturity securities (amortized cost) | 8,394.0 | $ 8,285.0 |
Available for sale, Due in one year or less (estimated fair value) | 863.4 | |
Available for sale, Due after one year through five years (estimated fair value) | 5,200.7 | |
Available for sale, Due after five years through ten years (estimated fair value) | 2,566.0 | |
Available for sale, Due after ten years (estimated fair value) | 36.4 | |
Available for sale, Fixed maturity securities (estimated fair value) | 8,666.7 | 8,182.8 |
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) | 310.2 | |
Held to maturity, Due after five years through then years (amortized cost) | 717.2 | |
Held to maturity, Due after ten years (amortized cost) | 0.0 | |
Held to maturity (amortized cost) | 1,027.5 | 1,044.8 |
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) | 315.6 | |
Held to maturity, Due after five years through ten years (estimated fair value) | 744.6 | |
Held to maturity, Due after ten years (estimated fair value) | 0.0 | |
Held to maturity (estimated fair value) | $ 1,060.2 | $ 1,034.5 |
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2019 |
Dec. 31, 2018 |
|
Statement of Cash Flows [Abstract] | ||
Special dividend declared in December 2017 and paid in January 2018 | $ 269.2 | |
Special dividend paid in September 2019 | $ 303.4 |
Information About Segments of Business (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2019 |
Sep. 30, 2018 |
Sep. 30, 2019 |
Sep. 30, 2018 |
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Segment Reporting Information | |||||||||||||
Premiums Earned, Net | $ 1,423.4 | $ 1,388.6 | $ 4,016.5 | $ 3,914.4 | |||||||||
Realized from actual transactions | 6.3 | 7.3 | 31.3 | 54.8 | |||||||||
Unrealized from changes in fair value of equity securities | 57.3 | 128.4 | 439.3 | 17.7 | |||||||||
Consolidated Revenues [Abstract] | |||||||||||||
Consolidated revenues | 1,771.0 | 1,779.7 | 5,284.4 | 4,740.9 | |||||||||
Title, escrow and other fees | 138.2 | 116.2 | 363.8 | 341.0 | |||||||||
Total premiums and fees | 1,561.7 | 1,504.8 | 4,380.4 | 4,255.5 | |||||||||
Total realized and unrealized investment gains (losses) | 63.6 | 135.7 | 468.7 | 72.6 | |||||||||
Total Operating Revenues | 1,707.3 | 1,644.0 | 4,815.7 | 4,668.2 | |||||||||
Consolidated Income (Loss) Before Taxes (Credits) [Abstract] | |||||||||||||
Income (loss) before income taxes (credits) | 252.4 | 335.1 | 976.3 | 575.7 | |||||||||
Total realized and unrealized investment gains (losses) | 63.6 | 135.7 | 468.7 | 72.6 | |||||||||
Consolidated Income Tax Expense (Credits) [Abstract] | |||||||||||||
Income tax expense (credits) | 49.5 | 59.8 | 195.6 | 98.6 | |||||||||
Income tax expense (credits) on consolidated net realized investment gains (losses) | [1] | 13.5 | 28.5 | 98.7 | 15.2 | ||||||||
Realized from actual transactions and impairments | 6.3 | 7.3 | 29.3 | 54.8 | |||||||||
Total Company Segments [Member] | |||||||||||||
Consolidated Revenues [Abstract] | |||||||||||||
Consolidated revenues | 1,694.6 | 1,631.5 | 4,777.6 | 4,633.6 | |||||||||
Consolidated Income (Loss) Before Taxes (Credits) [Abstract] | |||||||||||||
Income (loss) before income taxes (credits) | 170.9 | 186.1 | 463.4 | 475.4 | |||||||||
Consolidated Income Tax Expense (Credits) [Abstract] | |||||||||||||
Income tax expense (credits) | 34.7 | 34.7 | 91.9 | 87.8 | |||||||||
General Insurance Group [Member] | |||||||||||||
Segment Reporting Information | |||||||||||||
Premiums Earned, Net | [2] | 870.2 | 841.5 | 2,551.9 | 2,441.3 | ||||||||
Income (loss) before income taxes (credits) and realized investment gains or losses | [2],[3] | 90.7 | 105.1 | 285.8 | 279.1 | ||||||||
Consolidated Revenues [Abstract] | |||||||||||||
Net investment income and other income | [2] | 121.4 | 116.3 | 362.8 | 344.4 | ||||||||
Total Operating Revenues | [2] | 991.7 | 957.8 | 2,914.7 | 2,785.7 | ||||||||
Consolidated Income Tax Expense (Credits) [Abstract] | |||||||||||||
Income tax expense (credits) | [2] | 17.2 | 18.0 | 54.2 | 46.7 | ||||||||
Interest charges on intercompany financing arrangements | 17.7 | 17.9 | 54.1 | 49.9 | |||||||||
Title Insurance Segment [Member] | |||||||||||||
Segment Reporting Information | |||||||||||||
Premiums Earned, Net | 535.5 | 524.5 | 1,408.4 | 1,402.5 | |||||||||
Income (loss) before income taxes (credits) and realized investment gains or losses | [3] | 72.8 | 67.7 | 153.7 | 158.2 | ||||||||
Consolidated Revenues [Abstract] | |||||||||||||
Title, escrow and other fees | 138.2 | 116.2 | 363.8 | 341.0 | |||||||||
Total premiums and fees | 673.8 | 640.7 | 1,772.3 | 1,743.6 | |||||||||
Net investment income and other income | 10.4 | 10.0 | 31.3 | 29.5 | |||||||||
Total Operating Revenues | 684.3 | 650.8 | 1,803.7 | 1,773.1 | |||||||||
Consolidated Income Tax Expense (Credits) [Abstract] | |||||||||||||
Income tax expense (credits) | 15.9 | 14.0 | 33.0 | 33.3 | |||||||||
Interest charges on intercompany financing arrangements | 1.4 | 1.5 | 4.4 | 4.6 | |||||||||
RFIG Run-off Business [Member] | |||||||||||||
Segment Reporting Information | |||||||||||||
Premiums Earned, Net | [2] | 14.2 | 18.2 | 45.8 | 59.2 | ||||||||
Income (loss) before income taxes (credits) and realized investment gains or losses | [2] | 7.3 | 13.3 | 23.9 | 38.0 | ||||||||
Consolidated Revenues [Abstract] | |||||||||||||
Net investment income and other income | [2] | 4.2 | 4.6 | 13.2 | 15.4 | ||||||||
Total Operating Revenues | [2] | 18.5 | 22.8 | 59.1 | 74.7 | ||||||||
Consolidated Income Tax Expense (Credits) [Abstract] | |||||||||||||
Income tax expense (credits) | [2] | 1.4 | 2.6 | 4.6 | 7.7 | ||||||||
Other sources - net [Member] | |||||||||||||
Consolidated Revenues [Abstract] | |||||||||||||
Consolidated revenues | [4] | 43.0 | 45.7 | 131.1 | 127.4 | ||||||||
Consolidated Income (Loss) Before Taxes (Credits) [Abstract] | |||||||||||||
Income (loss) before income taxes (credits) | [4] | 17.7 | 13.1 | 44.2 | 27.6 | ||||||||
Consolidated Income Tax Expense (Credits) [Abstract] | |||||||||||||
Income tax expense (credits) | [4] | 1.3 | (3.3) | 5.0 | (4.4) | ||||||||
Consolidation elimination adjustments [Member] | |||||||||||||
Consolidated Revenues [Abstract] | |||||||||||||
Consolidated revenues | $ (30.3) | $ (33.2) | $ (93.0) | $ (92.8) | |||||||||
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt: Consolidated debt of Old Republic and its subsidiaries is summarized below:
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 financial liabilities disclosed, but not carried at fair value, segregated among the various input levels described in Note 3 above:
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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 incurrence 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, favorable or unfavorable claim developments 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 2018 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.
Summary of changes in aggregate reserves for claims and related costs:
__________
coverage rescissions and claims denials. Estimates of coverage rescissions and claim denials are no longer material to Old Republic's consolidated financial statements.
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Investments Gross Unrealized Losses and Fair Value (Details) $ in Millions |
Sep. 30, 2019
USD ($)
|
Dec. 31, 2018
USD ($)
|
---|---|---|
Schedule of Available-for-sale and Held-to-maturity Securities [Table] [Line Items] | ||
Available for sale, Fair Value, Less than 12 Months | $ 222.2 | $ 4,057.6 |
Available for sale, Unrealized Losses, Less than 12 Months | 2.3 | 86.4 |
Available for sale, Fair Value, 12 Months or Greater | 321.0 | 1,583.6 |
Available for sale, Unrealized Losses, 12 Months or Greater | 2.0 | 52.8 |
Available for sale, Fair Value, Total | 543.2 | 5,641.2 |
Available for sale, Unrealized Losses, Total | 4.4 | 139.2 |
U.S. & Canadian Governments [Member] | ||
Schedule of Available-for-sale and Held-to-maturity Securities [Table] [Line Items] | ||
Available for sale, Fair Value, Less than 12 Months | 158.1 | 616.7 |
Available for sale, Unrealized Losses, Less than 12 Months | 0.0 | 8.4 |
Available for sale, Fair Value, 12 Months or Greater | 170.0 | 487.1 |
Available for sale, Unrealized Losses, 12 Months or Greater | 0.3 | 8.1 |
Available for sale, Fair Value, Total | 328.1 | 1,103.9 |
Available for sale, Unrealized Losses, Total | 0.3 | 16.5 |
Tax-exempt [Member] | ||
Schedule of Available-for-sale and Held-to-maturity Securities [Table] [Line Items] | ||
Available for sale, Fair Value, Less than 12 Months | 0.0 | 271.9 |
Available for sale, Unrealized Losses, Less than 12 Months | 0.0 | 2.3 |
Available for sale, Fair Value, 12 Months or Greater | 48.4 | 407.7 |
Available for sale, Unrealized Losses, 12 Months or Greater | 0.1 | 11.4 |
Available for sale, Fair Value, Total | 48.4 | 679.7 |
Available for sale, Unrealized Losses, Total | $ 0.1 | $ 13.7 |
Held-to-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 less than 12 months | 0 | 94 |
Number of securities in continuous unrealized loss position for 12 months or greater | 21 | 145 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 21 | 239 |
Corporate [Member] | ||
Schedule of Available-for-sale and Held-to-maturity Securities [Table] [Line Items] | ||
Available for sale, Fair Value, Less than 12 Months | $ 64.1 | $ 3,440.8 |
Available for sale, Unrealized Losses, Less than 12 Months | 2.3 | 77.9 |
Available for sale, Fair Value, 12 Months or Greater | 150.9 | 1,096.4 |
Available for sale, Unrealized Losses, 12 Months or Greater | 1.7 | 44.7 |
Available for sale, Fair Value, Total | 215.1 | 4,537.3 |
Available for sale, Unrealized Losses, Total | $ 4.1 | $ 122.7 |
Available-for-sale Securities [Member] | ||
Schedule of Available-for-sale and Held-to-maturity Securities [Table] [Line Items] | ||
Number of securities in continuous unrealized loss position for less than 12 months | 15 | 760 |
Number of securities in continuous unrealized loss position for 12 months or greater | 85 | 335 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 100 | 1,095 |
Consolidated Statements of Cash Flows - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
Sep. 30, 2019 |
Sep. 30, 2018 |
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Cash flows from operating activities: | ||
Net income (loss) | $ 780.6 | $ 477.0 |
Adjustments to reconcile net income (loss) to | ||
Deferred policy acquisition costs | (16.5) | (18.7) |
Premiums and other receivables | (188.3) | (173.2) |
Unpaid claims and related items | 142.8 | 148.5 |
Unearned premiums and other policyholders' liabilities | 81.0 | 103.8 |
Income taxes | 97.1 | 0.8 |
Prepaid federal income taxes | (8.6) | 0.0 |
Reinsurance balances and funds | 130.5 | 110.4 |
Realized from actual transactions and impairments | 29.3 | 54.8 |
Unrealized investment (gains) losses from changes in fair value of equity securities | (439.3) | (17.7) |
Accounts payable, accrued expenses and other | 116.1 | 21.0 |
Total | 666.2 | 597.1 |
Available for sale | ||
Maturities and early calls | 464.4 | 758.9 |
Sales | 430.3 | 222.6 |
Sales of: | ||
Equity securities | 520.6 | 294.5 |
Other - net | 28.2 | 13.3 |
Purchases of: | ||
Available for sale | (1,016.4) | (1,027.6) |
Equity securities | (430.2) | (432.0) |
Other - net | (42.4) | (40.4) |
Net decrease (increase) in short-term investments | (132.0) | 88.7 |
Other - net | (1.2) | (6.8) |
Total | (178.6) | (128.7) |
Cash flows from financing activities: | ||
Issuance of common shares | 12.7 | 12.2 |
Redemption of debentures and notes | (8.4) | (4.7) |
Origination of Loans to Employee Stock Ownership Plans | 0.0 | (37.4) |
in January 2018 of $269.2) | (478.8) | (440.5) |
Other - net | (3.7) | (8.6) |
Total | (478.3) | (479.1) |
Increase (decrease) in cash | 9.2 | (10.7) |
Cash, beginning of period | 100.3 | 125.9 |
Cash, end of period | 109.6 | 115.2 |
Supplemental cash flow information: | ||
Cash paid (received) during the period for: Interest | 41.9 | 50.4 |
Cash paid (received) during the period for: Income taxes | $ 99.0 | $ 97.9 |
Information About Segments of Business Textuals (Details) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2019
USD ($)
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Sep. 30, 2018
USD ($)
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Sep. 30, 2019
USD ($)
segment
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Sep. 30, 2018
USD ($)
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Segment Reporting Information | ||||
Number of major segments | segment | 3 | |||
General Insurance Group [Member] | ||||
Segment Reporting Information | ||||
Interest charges on intercompany financing arrangements | $ 17.7 | $ 17.9 | $ 54.1 | $ 49.9 |
Title Insurance Segment [Member] | ||||
Segment Reporting Information | ||||
Interest charges on intercompany financing arrangements | $ 1.4 | $ 1.5 | $ 4.4 | $ 4.6 |
Debt (Details) - USD ($) $ in Millions |
Sep. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Debt Instrument [Line Items] | ||
Fair value | $ 1,051.9 | $ 977.9 |
Debt and Lease Obligation | 973.7 | 981.4 |
Senior Notes Due 2024 | ||
Debt Instrument [Line Items] | ||
Fair value | 441.4 | 415.6 |
Debt and Lease Obligation | $ 397.2 | $ 396.8 |
Debt Instrument, Interest Rate, Stated Percentage | 4.875% | 4.875% |
Senior Notes Due 2026 [Member] | ||
Debt Instrument [Line Items] | ||
Fair value | $ 580.0 | $ 523.3 |
Debt and Lease Obligation | $ 546.1 | $ 545.7 |
Debt Instrument, Interest Rate, Stated Percentage | 3.875% | 3.875% |
Debt [Member] | ||
Debt Instrument [Line Items] | ||
Fair value | $ 30.4 | $ 38.8 |
Debt and Lease Obligation | $ 30.4 | $ 38.8 |
Consolidated Statements of Income - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2019 |
Sep. 30, 2018 |
Sep. 30, 2019 |
Sep. 30, 2018 |
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Revenues: | ||||
Net premiums earned | $ 1,423.4 | $ 1,388.6 | $ 4,016.5 | $ 3,914.4 |
Title, escrow, and other fees | 138.2 | 116.2 | 363.8 | 341.0 |
Total premiums and fees | 1,561.7 | 1,504.8 | 4,380.4 | 4,255.5 |
Net investment income | 112.7 | 108.7 | 337.8 | 321.5 |
Other income | 32.9 | 30.4 | 97.4 | 91.1 |
Total operating revenues | 1,707.3 | 1,644.0 | 4,815.7 | 4,668.2 |
Investment gains (losses): | ||||
Realized from actual transactions and impairments | 6.3 | 7.3 | 29.3 | 54.8 |
Unrealized from changes in fair value of equity securities | 57.3 | 128.4 | 439.3 | 17.7 |
Total realized and unrealized investment gains (losses) | 63.6 | 135.7 | 468.7 | 72.6 |
Total revenues | 1,771.0 | 1,779.7 | 5,284.4 | 4,740.9 |
Benefits, Claims and Expenses: | ||||
Benefits, claims and settlement expenses | 659.5 | 615.1 | 1,887.9 | 1,806.3 |
Dividends to policyholders | 4.2 | 4.2 | 17.2 | 14.4 |
Underwriting, acquisition, and other expenses | 845.0 | 815.2 | 2,372.0 | 2,310.0 |
Interest and other charges | 9.7 | 9.9 | 30.8 | 34.3 |
Total expenses | 1,518.6 | 1,444.6 | 4,308.0 | 4,165.2 |
Income (loss) before income taxes (credits) | 252.4 | 335.1 | 976.3 | 575.7 |
Income Taxes (Credits): | ||||
Current | 38.9 | 34.2 | 113.2 | 95.7 |
Deferred | 10.5 | 25.6 | 82.4 | 2.9 |
Total | 49.5 | 59.8 | 195.6 | 98.6 |
Net Income (Loss) | $ 202.8 | $ 275.2 | $ 780.6 | $ 477.0 |
Net Income (Loss) Per Share: | ||||
Net income (loss) per share: Basic (in dollars per share) | $ 0.68 | $ 0.92 | $ 2.60 | $ 1.63 |
Net income (loss) per share: Diluted (in dollars per share) | $ 0.67 | $ 0.92 | $ 2.59 | $ 1.59 |
Average shares outstanding: Basic (in shares) | 299,894,995 | 299,006,345 | 299,740,751 | 292,565,008 |
Average shares outstanding: Diluted (in shares) | 301,384,364 | 300,374,004 | 301,034,156 | 301,125,090 |
Commitments and Contingent Liabilities Commitments and Contingent Liabilities |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingent Liabilities | Commitments and Contingent Liabilities: (a) Legal Proceedings - 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. At September 30, 2019, the Company had no material non-claim litigation exposures in its consolidated business. (b) Leases - Several of the Company’s subsidiaries maintain their offices in leased premises. A number of these leases provide for the payment of real estate taxes, insurance, and other operating expenses. In addition, many of the subsidiaries also lease equipment for use in their businesses. Substantially all of the Company’s leases are classified as operating leases. Effective January 1, 2019, the Company adopted new lease accounting guidance issued by the FASB which requires the balance sheet recognition of all leases with a term greater than 12 months. The Company’s adoption of this standard resulted in the establishment of a right of use asset ($226.9) and corresponding lease liability ($241.4) equal to the present value of future lease payments, reflected within sundry assets and liabilities in the consolidated balance sheet. Furthermore, the Company recognized $18.4, net of tax, in previously deferred gains associated with sale leaseback transactions as an adjustment to beginning retained earnings. The Company elected not to restate comparative periods' financial statements and related disclosures. The Company has made certain elections available under the guidance, primarily regarding lease classification and the treatment of certain lease executory costs resulting in an immaterial effect on the Company’s consolidated financial statements. In determining the lease liability, the Company estimated the discount rate (weighted average 5.55%) for each lease based upon the type of underlying asset and remaining term (weighted average 8.0 years). Total lease costs for the quarter and year-to-date periods ended September 30, 2019 were $17.5 and $54.9, respectively. Fixed lease payments for the same periods were $16.4 and $48.6, respectively. The following table presents a summary of future undiscounted lease payments as of the dates shown.
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Investments |
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Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments | Investments: The Company classifies its fixed maturity securities as those 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. Fixed maturity securities classified as "available for sale" are reported at fair value with changes in such values, net of deferred income taxes, reflected directly in shareholders' equity. Fixed maturity securities classified as "held to maturity" are carried at amortized cost. Equity securities are reported at fair value with changes in such values reflected as unrealized investment gains (losses) in the consolidated statements of income. Fair values for fixed maturity securities and equity securities are based on quoted market prices or estimates using values obtained from recognized independent pricing services. The status and fair value changes of each of the fixed maturity investments are reviewed at least once per quarter 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 audited financial statements, 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. 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 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 directly in shareholders' equity. The Company recognized $- and $2.0 of OTTI adjustments for the quarter and nine months ended September 30, 2019, respectively, and no OTTI adjustments for the same periods of 2018. 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.
The following tables reflect 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 fixed maturity securities have been in an unrealized loss position.
The unrealized losses on fixed income securities are primarily deemed to reflect changes in the interest rate environment. As part of its assessment of other-than-temporary impairments, the Company considers: a) intent to continue to hold the securities, b) the likelihood that it will not be required to sell investment securities in an unrealized loss position until cost recovery, and c) the benefits of its asset and liability matching objectives. The following table shows cost and fair value information for equity securities:
During the third quarter and first nine months of 2019 and 2018, the Company recognized pretax unrealized investment gains (losses) of $57.3 and $439.3, respectively for 2019, and $128.4 and $17.7, respectively for 2018, emanating from changes in the fair value of equity securities in the consolidated statements of income. Changes in the fair value of equity securities still held at September 30, 2019 and 2018 were $78.0 and $438.5 for the quarter and first nine months of 2019, respectively, and $137.1 and $67.4 for the quarter and first nine months of 2018, respectively. 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: Level 1 inputs are based on quoted market prices in active markets; Level 2 observable inputs are based on corroboration with available market data; and Level 3 unobservable inputs are based on uncorroborated market data or a reporting entity's own assumptions. 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 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) comparisons with other sources including the fair value estimates based on current market quotations, and with independent fair value estimates provided by the independent investment custodian. The independent pricing source obtains market quotations and actual transaction prices for securities that have quoted prices in active markets and uses their 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, mutual funds, and 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 Level 3 assets as of September 30, 2019 and December 31, 2018. 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 September 30, 2019. Investment income is reported net of 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. At September 30, 2019, the Company and its subsidiaries had no non-income producing fixed maturity or equity securities. Realized investment gains and losses, which result from sales or impairments 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. 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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(b) Reflects primarily the combination of fully taxable investment gains or losses and judgments about the recoverability of deferred tax assets.
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Investments Net Investment Income (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||||||
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Sep. 30, 2019 |
Sep. 30, 2018 |
Sep. 30, 2019 |
Sep. 30, 2018 |
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Gain (Loss) on Securities [Line Items] | |||||||||
Gross investment income | $ 114.4 | $ 110.2 | $ 343.1 | $ 326.2 | |||||
Investment expenses | [1] | 1.7 | 1.4 | 5.2 | 4.6 | ||||
Net investment income | 112.7 | 108.7 | 337.8 | 321.5 | |||||
Net realized gains (losses) | 50.1 | 107.2 | 369.9 | 57.4 | |||||
Realized from actual transactions | 6.3 | 7.3 | 31.3 | 54.8 | |||||
Realized Investment Gains Losses From Impairment | 0.0 | 0.0 | (2.0) | 0.0 | |||||
Unrealized from changes in fair value of equity securities | 57.3 | 128.4 | 439.3 | 17.7 | |||||
Total realized and unrealized investment gains (losses) | 63.6 | 135.7 | 468.7 | 72.6 | |||||
Current and deferred income taxes (credits)(b) | [2] | 13.5 | 28.5 | 98.7 | 15.2 | ||||
Changes in unrealized investment gains (losses) on, fixed maturity securities | 60.7 | (23.4) | 377.3 | (236.8) | |||||
Less: Deferred income taxes (credits) | 12.7 | (4.9) | 79.5 | (49.8) | |||||
Unrealized Gain (Loss) on Investments | 48.0 | (18.4) | 297.8 | (186.9) | |||||
Equity Securities [Member] | |||||||||
Gain (Loss) on Securities [Line Items] | |||||||||
Equity securities, gross realized gains | 42.7 | 8.6 | 97.0 | 61.5 | |||||
Equity securities, gross realized losses | (29.0) | 0.0 | (57.0) | (7.1) | |||||
Equity securities, net realized gains (losses) | 13.6 | 8.6 | 40.0 | 54.4 | |||||
Fixed Maturity Securities [Member] | |||||||||
Gain (Loss) on Securities [Line Items] | |||||||||
Fixed maturity securities, gross realized gains | 0.8 | 0.5 | 4.6 | 1.6 | |||||
Fixed maturity securities, gross realized losses | (6.0) | (1.7) | (11.1) | (2.6) | |||||
Net realized gains (losses) | (5.1) | (1.2) | (6.5) | (1.0) | |||||
Changes in unrealized investment gains (losses) on, fixed maturity securities | 58.2 | (23.4) | 373.6 | (236.4) | |||||
Less: Deferred income taxes (credits) | 12.1 | (5.0) | 78.6 | (49.8) | |||||
Net changes in unrealized investment gains (losses) | 46.0 | (18.4) | 295.0 | (186.6) | |||||
Equity securities & other long-term investments [Member] | |||||||||
Gain (Loss) on Securities [Line Items] | |||||||||
Changes in unrealized investment gains (losses) on, fixed maturity securities | 2.5 | 0.0 | 3.6 | (0.3) | |||||
Less: Deferred income taxes (credits) | 0.6 | 0.0 | 0.8 | 0.0 | |||||
Net changes in unrealized investment gains (losses) | 1.9 | 0.0 | 2.8 | (0.2) | |||||
Other Investments | |||||||||
Gain (Loss) on Securities [Line Items] | |||||||||
Investment gains (losses) - other long-term investments | (2.2) | 0.0 | (2.1) | 1.5 | |||||
Fixed Maturity Securities [Member] | |||||||||
Gain (Loss) on Securities [Line Items] | |||||||||
Gross investment income | 74.4 | 74.4 | 224.3 | 224.2 | |||||
Equity Securities [Member] | |||||||||
Gain (Loss) on Securities [Line Items] | |||||||||
Gross investment income | 36.2 | 31.5 | 106.6 | 91.3 | |||||
Short-term Investments [Member] | |||||||||
Gain (Loss) on Securities [Line Items] | |||||||||
Gross investment income | 2.7 | 2.7 | 7.6 | 6.9 | |||||
Investments [Member] | |||||||||
Gain (Loss) on Securities [Line Items] | |||||||||
Gross investment income | $ 1.0 | $ 1.4 | $ 4.4 | $ 3.6 | |||||
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Debt (Tables) |
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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 financial liabilities disclosed, but not carried at fair value, segregated among the various input levels described in Note 3 above:
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Investments (Tables) |
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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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Gross Unrealized Losses and Fair Value, Aggregated | The following tables reflect 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 fixed maturity securities have been in an unrealized loss position.
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Equity Securities Reflecting Reported Cost |
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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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Employee Benefit Plans |
9 Months Ended |
---|---|
Sep. 30, 2019 | |
Retirement Benefits [Abstract] | |
Pension Plans | Employee Benefit Plans: The Company had an active pension plan (the "Plan") covering a portion of its work force until December 31, 2013. 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 had been previously closed to new participants and benefits were frozen as of December 31, 2013. As a result, eligible employees retained all of the vested rights as of the effective date of the freeze. While additional benefits no longer accrue, the Company's cumulative obligation continues to be subject to further adjustment due to changes in actuarial assumptions such as expected mortality and changes in interest rates. Net periodic pension costs for the quarterly and year-to-date periods ended September 30, 2019 and 2018 were not material to Old Republic's consolidated statements of income.
|
Summary of Significant Accounting Policies |
9 Months Ended |
---|---|
Sep. 30, 2019 | |
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 2018 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. Recent ones are discussed below. a) Effective January 1, 2019, the Company adopted FASB guidance on lease accounting which requires balance sheet recognition of all leases with a term greater than 12 months. The Company's adoption of this guidance is discussed in Note 7. b) Effective January 1, 2018, the Company adopted FASB guidance on the recognition and measurement of financial instruments. See Note 3. c) Effective January 1, 2018, the Company adopted the FASB's comprehensive revenue recognition standard which applies to contracts with customers, except for those that fall within the scope of other standards, such as insurance contracts. The Company’s adoption of this standard did not have an effect on its insurance contract revenues, and based on its evaluation of certain less significant revenue streams generated from contracts with customers, did not have a material impact on the consolidated financial statements taken as a whole. d) 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 including (1) reinsurance recoverables, (2) held to maturity securities and (3) accounts and notes receivable. Additionally, the guidance modifies the impairment model for available for sale fixed maturity securities. The Company is continuing to evaluate the guidance, however does not expect that its adoption will have a material impact on its consolidated financial statements. |
Income Taxes |
9 Months Ended |
---|---|
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes: |
Losses, Claims and Settlement Expenses (Details) - USD ($) $ in Millions |
9 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Sep. 30, 2019 |
Sep. 30, 2018 |
Dec. 31, 2018 |
Dec. 31, 2017 |
||||
Liability for Unpaid Claims and Claims Adjustment Expense | |||||||
Gross reserves at beginning of period | $ 9,471.2 | $ 9,237.6 | |||||
Net reserves at beginning of period | $ 6,464.9 | $ 6,316.4 | |||||
Provisions for insured events of the current year | 1,928.1 | 1,849.0 | |||||
Change in provision for insured events of prior years | (38.7) | (42.7) | |||||
Total incurred claims and claim adjustment expenses | [1] | 1,889.3 | 1,806.2 | ||||
Claims and claim adjustment expenses attributable to insured events of the current year | 573.8 | 561.1 | |||||
Claims and claim adjustment expenses attributable to insured events of prior years | 1,172.5 | 1,096.4 | |||||
Total payments | 1,746.3 | 1,657.6 | |||||
Amount of reserves for unpaid claims and claim adjustment expenses at the end of each period, net of reinsurance losses recoverable | 6,607.8 | 6,465.0 | |||||
Gross reserves at end of period | 9,817.4 | 9,482.9 | |||||
Reinsurance losses recoverable | |||||||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||||||
Reinsurance Recoverable for Unpaid Claims and Claims Adjustments | 3,006.3 | 2,921.1 | |||||
Liability for Unpaid Claims and Claims Adjustment Expense | |||||||
Less: reinsurance losses recoverable | 3,209.5 | 3,017.8 | |||||
General Insurance | |||||||
Liability for Unpaid Claims and Claims Adjustment Expense | |||||||
Net reserves at beginning of period | 5,766.1 | 5,471.5 | |||||
Provisions for insured events of the current year | 1,815.9 | 1,717.4 | |||||
Change in provision for insured events of prior years | (11.1) | 7.3 | |||||
Claims and claim adjustment expenses attributable to insured events of the current year | 562.2 | 543.1 | |||||
Claims and claim adjustment expenses attributable to insured events of prior years | 1,068.4 | 959.4 | |||||
Amount of reserves for unpaid claims and claim adjustment expenses at the end of each period, net of reinsurance losses recoverable | 5,940.1 | 5,693.8 | |||||
Title Insurance | |||||||
Liability for Unpaid Claims and Claims Adjustment Expense | |||||||
Net reserves at beginning of period | 533.4 | 559.7 | |||||
Provisions for insured events of the current year | 71.3 | 72.0 | |||||
Change in provision for insured events of prior years | (18.0) | (27.0) | |||||
Claims and claim adjustment expenses attributable to insured events of the current year | 2.2 | 5.7 | |||||
Claims and claim adjustment expenses attributable to insured events of prior years | 49.8 | 44.9 | |||||
Amount of reserves for unpaid claims and claim adjustment expenses at the end of each period, net of reinsurance losses recoverable | 534.6 | 554.0 | |||||
RFIG Run-off | |||||||
Liability for Unpaid Claims and Claims Adjustment Expense | |||||||
Net reserves at beginning of period | 154.5 | 271.7 | |||||
Provisions for insured events of the current year | [1] | 29.9 | 43.7 | ||||
Change in provision for insured events of prior years | [1] | (6.4) | (19.8) | ||||
Claims and claim adjustment expenses attributable to insured events of the current year | 2.0 | 1.6 | |||||
Claims and claim adjustment expenses attributable to insured events of prior years | 51.3 | 87.3 | |||||
Amount of reserves for unpaid claims and claim adjustment expenses at the end of each period, net of reinsurance losses recoverable | 124.6 | 206.5 | |||||
Other | |||||||
Liability for Unpaid Claims and Claims Adjustment Expense | |||||||
Net reserves at beginning of period | $ 10.8 | $ 13.5 | |||||
Provisions for insured events of the current year | 10.9 | 15.7 | |||||
Change in provision for insured events of prior years | (3.2) | (3.2) | |||||
Claims and claim adjustment expenses attributable to insured events of the current year | 7.2 | 10.6 | |||||
Claims and claim adjustment expenses attributable to insured events of prior years | 2.9 | 4.7 | |||||
Amount of reserves for unpaid claims and claim adjustment expenses at the end of each period, net of reinsurance losses recoverable | $ 8.3 | $ 10.6 | |||||
|
Commitments and Contingent Liabilities Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
Sep. 30, 2019 |
Sep. 30, 2018 |
Sep. 30, 2019 |
Sep. 30, 2018 |
Jan. 01, 2019 |
Dec. 31, 2018 |
|
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Lease liability | $ (235.6) | $ (235.6) | ||||
Retained earnings | $ 4,170.1 | $ 4,170.1 | $ 3,849.8 | |||
Weighted average discount rate | 5.55% | 5.55% | ||||
Weighted average remaining lease term | 8 years | 8 years | ||||
Lease cost | $ 17.5 | $ 54.9 | ||||
Lease payments | $ 16.4 | $ 48.6 | ||||
ASU 2016-02 | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Right-of-use asset | $ 226.9 | |||||
Lease liability | 241.4 | |||||
Retained earnings | $ 18.4 |
Consolidated Balance Sheets - USD ($) $ in Millions |
Sep. 30, 2019 |
Dec. 31, 2018 |
|||
---|---|---|---|---|---|
Available for sale: | |||||
Fixed maturity securities (at fair value) (amortized cost: $8,394.0 and $8,285.0) | $ 8,666.7 | $ 8,182.8 | |||
Short-term investments (at fair value which approximates cost) | 487.4 | 354.9 | |||
Total | 9,154.2 | 8,537.8 | |||
Held to maturity | |||||
Fixed maturity securities (at amortized cost) (fair value: $1,060.2 and $1,034.5) | 1,027.5 | 1,044.8 | |||
Equity securities (at fair value) (cost: $2,989.4 and $3,039.1) | 3,770.6 | 3,380.9 | |||
Other investments | 23.0 | 31.0 | |||
Total investments | 13,975.4 | 12,994.6 | |||
Other Assets: | |||||
Cash | 109.6 | 100.3 | |||
Accrued investment income | 94.6 | 92.4 | |||
Accounts and notes receivable | 1,687.5 | 1,499.4 | |||
Federal income tax recoverable: Current | 0.5 | 16.8 | |||
Prepaid federal income taxes | 138.5 | 129.8 | |||
Reinsurance balances and funds held | 176.1 | 166.2 | |||
Reinsurance recoverable: Paid losses | 74.6 | 55.9 | |||
Reinsurance recoverable: Policy and claim reserves | 3,849.1 | 3,428.6 | |||
Deferred policy acquisition costs | 333.0 | 316.3 | |||
Sundry assets | 742.4 | 526.3 | |||
Total Other Assets | 7,206.3 | 6,332.4 | |||
Total Assets | 21,181.8 | 19,327.1 | |||
Liabilities, Preferred Stock, and Common Shareholders' Equity Liabilities: | |||||
Losses, claims, and settlement expenses | 9,817.4 | 9,471.2 | |||
Unearned premiums | 2,408.6 | 2,104.9 | |||
Other policyholders' benefits and funds | 193.3 | 198.6 | |||
Total policy liabilities and accruals | 12,419.4 | 11,774.8 | |||
Commissions, expenses, fees, and taxes | 518.6 | 525.4 | |||
Reinsurance balances and funds | 759.9 | 600.4 | |||
Deferred Income Tax Liabilities, Net | 171.3 | 10.3 | |||
Debt | 973.7 | 981.4 | |||
Sundry liabilities | 544.6 | 288.3 | |||
Commitments and contingent liabilities | |||||
Total Liabilities | 15,387.9 | 14,180.8 | |||
Preferred Stock | [1] | 0.0 | 0.0 | ||
Common Shareholders' Equity: | |||||
Common stock | [1] | 303.5 | 302.7 | ||
Additional paid-in capital | 1,295.2 | 1,277.6 | |||
Retained earnings | 4,170.1 | 3,849.8 | |||
Accumulated other comprehensive income (loss) | 92.0 | (210.0) | |||
Unallocated ESSOP shares (at cost) | (67.1) | (73.9) | |||
Total Common Shareholders' Equity | 5,793.9 | 5,146.2 | |||
Total Liabilities, Preferred Stock and Common Shareholders' Equity | $ 21,181.8 | $ 19,327.1 | |||
|
Consolidated Statements of Preferred Stock and Common Shareholders' Equity - USD ($) $ in Millions |
Total |
Common Stock |
Additional Paid-in Capital |
Retained Earnings |
AOCI Attributable to Parent |
Unallocated ESSOP Shares |
Convertible Preferred Stock
Preferred Stock
|
---|---|---|---|---|---|---|---|
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 502.1 | $ (502.1) | |||||
Balance at Dec. 31, 2017 | $ 269.2 | $ 815.2 | 3,206.9 | 474.2 | $ (32.4) | $ 0.0 | |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance at Dec. 31, 2017 | 3,708.9 | (27.9) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Dividend reinvestment plan | 0.0 | 1.4 | |||||
Net issuance of shares under stock based compensation plans | 1.1 | 15.1 | |||||
Conversion of senior debentures | 32.2 | 438.1 | |||||
Stock based compensation | 3.7 | ||||||
ESSOP shares released | 1.9 | 5.8 | |||||
Net income (loss) | $ 477.0 | 477.0 | |||||
Dividends on common stock | (171.3) | ||||||
Foreign currency translation and other adjustments | (4.7) | (4.7) | |||||
Net unrealized gains (losses) on securities, net of tax | (186.9) | (186.9) | |||||
Net adjustment related to defined benefit pension plans, net of tax | 1.9 | 1.9 | |||||
Origination of Loans to Employee Stock Ownership Plans | (37.4) | (37.4) | |||||
Balance at Sep. 30, 2018 | 302.6 | 1,275.6 | 4,014.6 | (217.7) | (64.0) | 0.0 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | 0.0 | 0.0 | |||||
Balance at Jun. 30, 2018 | 302.4 | 1,272.2 | 3,797.7 | (202.6) | (66.4) | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance at Jun. 30, 2018 | 3,797.7 | (202.6) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Dividend reinvestment plan | 0.0 | 0.2 | |||||
Net issuance of shares under stock based compensation plans | 0.1 | 2.0 | |||||
Conversion of senior debentures | 0.0 | 0.0 | |||||
Stock based compensation | 0.4 | ||||||
ESSOP shares released | 0.6 | 2.3 | |||||
Net income (loss) | 275.2 | 275.2 | |||||
Dividends on common stock | (58.2) | ||||||
Foreign currency translation and other adjustments | 2.6 | 2.6 | |||||
Net unrealized gains (losses) on securities, net of tax | (18.4) | (18.4) | |||||
Net adjustment related to defined benefit pension plans, net of tax | 0.6 | 0.6 | |||||
Origination of Loans to Employee Stock Ownership Plans | 0.0 | ||||||
Balance at Sep. 30, 2018 | 302.6 | 1,275.6 | 4,014.6 | (217.7) | (64.0) | 0.0 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | 18.4 | 0.0 | |||||
Balance at Dec. 31, 2018 | 5,146.2 | 302.7 | 1,277.6 | 3,849.8 | (210.0) | (73.9) | 0.0 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance at Dec. 31, 2018 | 3,868.3 | (210.0) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Dividend reinvestment plan | 0.0 | 1.4 | |||||
Net issuance of shares under stock based compensation plans | 0.7 | 10.3 | |||||
Conversion of senior debentures | 0.0 | 0.0 | |||||
Stock based compensation | 3.6 | ||||||
ESSOP shares released | 2.1 | 6.8 | |||||
Net income (loss) | 780.6 | 780.6 | |||||
Dividends on common stock | (478.8) | ||||||
Foreign currency translation and other adjustments | 3.8 | 3.8 | |||||
Net unrealized gains (losses) on securities, net of tax | 297.8 | 297.8 | |||||
Net adjustment related to defined benefit pension plans, net of tax | 0.3 | 0.3 | |||||
Origination of Loans to Employee Stock Ownership Plans | 0.0 | 0.0 | |||||
Balance at Sep. 30, 2019 | 5,793.9 | 303.5 | 1,295.2 | 4,170.1 | 92.0 | (67.1) | 0.0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | 0.0 | 0.0 | |||||
Balance at Jun. 30, 2019 | 303.2 | 1,288.6 | 4,326.7 | 44.8 | (69.4) | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance at Jun. 30, 2019 | 4,326.7 | 44.8 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Dividend reinvestment plan | 0.0 | 1.0 | |||||
Net issuance of shares under stock based compensation plans | 0.3 | 4.3 | |||||
Conversion of senior debentures | 0.0 | 0.0 | |||||
Stock based compensation | 0.4 | ||||||
ESSOP shares released | 0.8 | 2.2 | |||||
Net income (loss) | 202.8 | 202.8 | |||||
Dividends on common stock | (359.4) | ||||||
Foreign currency translation and other adjustments | (1.6) | (1.6) | |||||
Net unrealized gains (losses) on securities, net of tax | 48.0 | 48.0 | |||||
Net adjustment related to defined benefit pension plans, net of tax | 0.8 | 0.8 | |||||
Origination of Loans to Employee Stock Ownership Plans | 0.0 | ||||||
Balance at Sep. 30, 2019 | $ 5,793.9 | $ 303.5 | $ 1,295.2 | $ 4,170.1 | $ 92.0 | $ (67.1) | $ 0.0 |
Investments Fixed Maturity Securities by Type (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2019 |
Sep. 30, 2018 |
Sep. 30, 2019 |
Sep. 30, 2018 |
Dec. 31, 2018 |
|
Schedule of Available-for-sale and Held-to-maturity Securities [Table] [Line Items] | |||||
Realized Investment Gains Losses From Impairment | $ 0.0 | $ 0.0 | $ (2.0) | $ 0.0 | |
Available for sale, Fixed maturity securities (amortized cost) | 8,394.0 | 8,394.0 | $ 8,285.0 | ||
Available for sale, Fixed maturity securities (estimated fair value) | 8,666.7 | 8,666.7 | 8,182.8 | ||
Held to maturity (estimated fair value) | 1,060.2 | 1,060.2 | 1,034.5 | ||
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) | 1,695.5 | 1,695.5 | 1,535.3 | ||
Available for sale, Fixed maturity securities (gross unrealized gains) | 45.6 | 45.6 | 5.7 | ||
Available for sale, Fixed maturity securities (gross unrealized losses) | 0.3 | 0.3 | 16.5 | ||
Available for sale, Fixed maturity securities (estimated fair value) | 1,740.8 | 1,740.8 | 1,524.4 | ||
Tax-exempt [Member] | |||||
Schedule of Available-for-sale and Held-to-maturity Securities [Table] [Line Items] | |||||
Debt Securities, Held-to-maturity, Amortized Cost, before Other-than-temporary Impairment | 1,027.5 | 1,027.5 | 1,044.8 | ||
Held to maturity (gross unrealized gains) | 32.8 | 32.8 | 3.5 | ||
Held to maturity (gross unrealized losses) | 0.1 | 0.1 | 13.7 | ||
Held to maturity (estimated fair value) | 1,060.2 | 1,060.2 | 1,034.5 | ||
Corporate [Member] | |||||
Schedule of Available-for-sale and Held-to-maturity Securities [Table] [Line Items] | |||||
Available for sale, Fixed maturity securities (amortized cost) | 6,698.4 | 6,698.4 | 6,749.6 | ||
Available for sale, Fixed maturity securities (gross unrealized gains) | 231.5 | 231.5 | 31.4 | ||
Available for sale, Fixed maturity securities (gross unrealized losses) | 4.1 | 4.1 | 122.7 | ||
Available for sale, Fixed maturity securities (estimated fair value) | 6,925.8 | 6,925.8 | 6,658.3 | ||
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) | 8,394.0 | 8,394.0 | 8,285.0 | ||
Available for sale, Fixed maturity securities (gross unrealized gains) | 277.1 | 277.1 | 37.1 | ||
Available for sale, Fixed maturity securities (gross unrealized losses) | 4.4 | 4.4 | 139.2 | ||
Available for sale, Fixed maturity securities (estimated fair value) | $ 8,666.7 | $ 8,666.7 | $ 8,182.8 |
Information About Segments of Business (Tables) |
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Sep. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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.
Segmented and Consolidated Results:
(a) Results for the Consumer Credit Indemnity ("CCI") run-off business are expected to be immaterial in the remaining run-off periods; effective July 1, 2019 these results are being classified in the General Insurance segment for the third quarter 2019 and all future periods. Previously these results were reflected as part of the RFIG Run-off Business.
|
Investments Fair Value (Details) - USD ($) $ in Millions |
Sep. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity (amortized cost) | $ 1,027.5 | $ 1,044.8 |
Equity securities | 3,770.6 | 3,380.9 |
Available for sale, Fixed maturity securities | 8,666.7 | 8,182.8 |
Short-term investments | 487.4 | 354.9 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 487.4 | 354.9 |
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 |
U.S. & Canadian Governments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, Fixed maturity securities | 1,740.8 | 1,524.4 |
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 | 943.5 | 714.0 |
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 | 797.2 | 810.3 |
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 |
Tax-exempt [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held to maturity (amortized cost) | 1,060.2 | 1,034.5 |
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) | 1,060.2 | 1,034.5 |
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 |
Corporate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, Fixed maturity securities | 6,925.8 | 6,658.3 |
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 | 6,915.3 | 6,647.8 |
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 |
Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 3,770.6 | 3,380.9 |
Available-for-sale, equity securities | 3,770.6 | 3,380.9 |
Equity Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 3,768.8 | 3,379.2 |
Equity Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
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] | ||
Equity securities | $ 1.8 | $ 1.7 |
Commitments and Contingent Liabilities - (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Future Undiscounted Lease Payments | The following table presents a summary of future undiscounted lease payments as of the dates shown.
|
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