Information About Segments of Business

6 Months Ended

Jun. 30, 2020

Segment Reporting [Abstract]

Information About Segments of Business

Information About Segments of Business:

Old Republic is engaged in the single business of insurance underwriting and related services. The Company conducts its operations through a number of regulated insurance company subsidiaries organized into three major segments, namely its General Insurance (property and liability insurance), Title Insurance, and the Republic Financial Indemnity Group ("RFIG") Run-off Business. The results of a small life and accident insurance business are included with those of the parent holding company and its internal corporate services subsidiaries. Each of the Company's segments underwrites and services only those insurance coverages which may be written by it pursuant to state insurance regulations and corporate charter provisions. Segment results exclude investment gains or losses and other-than-temporary impairments as these are aggregated in the consolidated totals. The contributions of Old Republic's insurance industry segments to consolidated totals are shown in the following table.

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Segmented and Consolidated Results:

	Quarters Ended					Six Months Ended
	June 30,					June 30,
	2020			2019		2020		2019
General Insurance (a):
Net premiums earned	$	818.0		$	850.1	$	1,670.8	$	1,681.6
Net investment income and other income	119.6			122.8		244.8		241.3
Total revenues excluding investment gains (losses)	$	937.6		$	972.9	$	1,915.6	$	1,923.0
Segment pretax operating income (loss) (b)	$	85.2		$	86.7	$	195.3	$	195.0
Income tax expense (credits) on above	$	15.5		$	16.1	$	36.4	$	36.9
Title Insurance:
Net premiums earned	$	520.4		$	460.6	$	1,028.5	$	872.9
Title, escrow and other fees	129.9			130.9		250.0		225.6
Sub-total	650.4			591.6		1,278.6		1,098.5
Net investment income and other income	10.5			10.4		21.5		20.8
Total revenues excluding investment gains (losses)	$	661.0		$	602.0	$	1,300.1	$	1,119.4
Segment pretax operating income (loss) (b)	$	65.4		$	60.2	$	108.7	$	80.8
Income tax expense (credits) on above	$	13.6		$	12.6	$	22.8	$	17.0
RFIG Run-off Business (a):
Net premiums earned	$	11.6		$	15.3	$	24.3	$	31.5
Net investment income and other income	3.9			4.3		8.3		8.9
Total revenues excluding investment gains (losses)	$	15.6		$	19.7	$	32.6	$	40.5
Segment pretax operating income (loss)	$	(4.9	)	$	8.2	$	3.4	$	16.5
Income tax expense (credits) on above	$	(1.1	)	$	1.6	$	.4	$	3.2

Consolidated Revenues:
Total revenues of above Company segments	$	1,614.3		$	1,594.8		$	3,248.5		$	3,082.9
Other sources (c)	36.3			44.1			76.1			88.1
Consolidated investment gains (losses):
Realized from actual transactions and impairments	(7.3		)	10.5			11.2			22.9
Unrealized from changes in fair value of equity securities	354.0			26.3			(608.7		)	382.0
Total realized and unrealized investment gains (losses)	346.7			36.9			(597.4		)	405.0
Consolidation elimination adjustments	(26.7		)	(31.1		)	(55.0		)	(62.7		)
Consolidated revenues	$	1,970.6		$	1,644.7		$	2,672.2		$	3,513.4
Consolidated Pretax Income (Loss):
Total segment pretax operating income (loss) of
above Company segments	$	145.6		$	155.2		$	307.5		$	292.4
Other sources - net (c)	6.7			13.2			19.0			26.4
Consolidated investment gains (losses):
Realized from actual transactions and impairments	(7.3		)	10.5			11.2			22.9
Unrealized from changes in fair value of equity securities	354.0			26.3			(608.7		)	382.0
Total realized and unrealized investment gains (losses)	346.7			36.9			(597.4		)	405.0
Consolidated income (loss) before income
taxes (credits)	$	499.1		$	205.4		$	(270.8	)	$	723.9

	Quarters Ended				Six Months Ended
	June 30,				June 30,
	2020		2019		2020			2019
Consolidated Income Tax Expense (Credits):
Total income tax expense (credits)
of above Company segments	$	28.0	$	30.4	$	59.7		$	57.2
Other sources - net (c)	.5		1.6		2.2			3.7
Income tax expense (credits) on consolidated realized
and unrealized investment gains (losses)	72.8		7.7		(125.7		)	85.1
Consolidated income tax expense (credits)	$	101.4	$	39.9	$	(63.7	)	$	146.1

	June 30,			December 31,
	2020			2019
Consolidated Assets:
General Insurance	$	18,533.8		$	17,870.0
Title Insurance	1,684.5			1,695.0
RFIG Run-off Business	556.6			615.1
Total assets for the above company segments	20,775.0			20,180.2
Other assets (c)	1,083.4			1,095.4
Consolidation elimination adjustments	(208.1		)	(199.3		)
Consolidated assets	$	21,650.3		$	21,076.3

(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 have been reclassified to the General Insurance segment for all future periods. Previously these results were reflected as part of the RFIG Run-off Business.

(b) Segment pretax operating income (loss) is reported net of interest charges on intercompany financing arrangements with Old Republic's holding company parent for the following segments: General - $15.7 and $32.1 compared to $17.9 and $36.4 for the quarters and six months ended June 30, 2020 and 2019, respectively, and Title - $.6 and $1.6 compared to $1.5 and $3.0 for the quarters and six months ended June 30, 2020 and 2019, respectively.

(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.