NEWS BULLETIN
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Old Republic International Corporation
307 North Michigan Avenue, Chicago, IL 60601-5382 312/346-8100
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For Further Information:
AT OLD REPUBLIC: AT FRB | WEBER SHANDWICK:
A.C. Zucaro George Zagoudis
Chairman & CEO General Information
(312) 346-8100 (312) 640-6663
gzagoudis@webershandwick.com
AT FRB | WEBER SHANDWICK: AT FRB | WEBER SHANDWICK:
Leslie Loyet Tim Grace
Analysts/Investors Media Inquiries
(312) 640-6672 (312) 640-6667
lloyet@webershandwick.com tgrace@webershandwick.com
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FOR IMMEDIATE RELEASE NYSE: ORI
TUESDAY, OCTOBER 28, 2003
OLD REPUBLIC REPORTS 14TH CONSECUTIVE RISE IN
QUARTERLY OPERATING EARNINGS
* * *
Earnings benefit from higher profits in General and Title Insurance Segments
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Financial Highlights
(unaudited; amounts in millions except share data and
percentages; all per-share amounts are stated on a diluted basis)
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Quarters Ended September 30, Nine Months Ended September 30,
---------------------------- -------------------------------
2003 2002 Change 2003 2002 Change
--------------------------------------------------------------------
<s> <c> <c> <c> <c> <c> <c>
Total Revenues $866.4 $701.0 23.6% $2,420.1 $1,998.1 21.1%
Net Operating Income $116.9 $ 98.3 18.9% $ 339.0 $ 292.3 16.0%
Net Income $119.9 $ 96.3 24.5% $ 345.8 $ 299.4 15.5%
Diluted Earnings Per Share:
Net Operating Income $ 0.96 $ 0.81 18.5% $ 2.78 $ 2.40 15.8%
Net Income $ 0.98 $ 0.79 24.1% $ 2.84 $ 2.46 15.4%
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CHICAGO--October 28, 2003--Old Republic International Corporation (NYSE: ORI),
reported greater earnings for this year's third quarter and first nine months.
Net income in this year's third quarter totaled $119.9 million, or 98 cents per
share, versus $96.3 million, or 79 cents per share, for the year-ago quarter.
Net operating income, which excludes realized investment gains or losses, was
$116.9 million, or 96 cents per share in the quarter compared to $98.3 million,
or 81 cents per share, in the same year-ago period.
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Old Republic International Corporation
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For the first nine months of 2003, net income was $345.8 million, or $2.84 per
share, versus $299.4 million, or $2.46 per share, for the same period of 2002.
Net operating income for the first nine months of 2003 was $339.0 million, or
$2.78 per share, compared to $292.3 million, or $2.40 per share, in the same
period of 2002. In last year's first nine months, tax expense was reduced and
net earnings were enhanced by tax and related interest recoveries of $10.9
million, or 9 cents per share, due to the favorable resolution in 2002's second
quarter of tax issues dating back to the Company's 1987 tax return. Absent this
non-recurring credit for 2002, net income and net operating income per share for
the first nine months of 2003 would reflect growth rates of 19.8 percent and
20.3 percent, respectively. Expense recognition of stock options granted in 2003
reduced earnings per share by less than 1 cent per share in this year's third
quarter and first nine months.
The components of GAAP net income and net operating income cited herein were as
follows:
($ in Millions)
------------------------------------------------
Quarters Ended Nine Months Ended
September 30, September 30,
-------------------- ---------------------
2003 2002 2003 2002
------- ------- ------- -------
<s> <c> <c> <c> <c>
Pretax operating income $173.3 $144.9 $500.7 $412.7
Income taxes 56.2 46.4 161.5 120.1
------- ------- ------- -------
Net operating income 116.9 98.3 339.0 292.3
------- ------- ------- -------
Add (deduct) realized investment
gains (losses) from:
Disposition of investments 11.5 0.4 27.0 29.9
Impairment of investments (6.9) (3.6) (16.4) (19.0)
------- ------- ------- -------
Total 4.5 (3.2) 10.5 10.9
Income taxes (credits) 1.6 (1.2) 3.7 3.8
------- ------- ------- -------
Post tax net realized gains (losses) 2.9 (2.0) 6.8 7.1
------- ------- ------- -------
Net income $119.9 $ 96.3 $345.8 $299.4
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Both net operating income and net income figures are given to aid investment
analysis of Company results, as they highlight the impact of certain accounting
rules or securities market-driven considerations that affect the recording of
investment gains or losses and contribute to earnings volatility and lessened
period-to-period comparability. The realization of investment gains or losses
can be highly discretionary or arbitrary due to such factors as the timing of
individual securities sales, losses from write-downs of impaired securities,
tax-planning considerations, and investment management judgments relative to the
direction of securities markets or the future prospects of individual investees
or industry sectors. The recognition of losses from write-downs of securities
deemed other than temporarily impaired can be caused by a variety of factors,
including adverse securities market trends and industry-wide or issuer-specific
developments that can lead to a permanent loss of market value or
non-recoverability of asset cost.
Consolidated Revenues
Consolidated operating revenues for this year's third quarter amounted to $861.8
million, up 22.4 percent when compared to $704.3 million posted in the same
quarter of 2002. Net premiums and fees were $778.1 million in 2003's third
quarter versus $623.3 million in the same period one year ago. Consolidated net
investment income of $69.1 million for the third quarter of 2003 was basically
flat when compared to the same quarter of 2002.
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For the first nine months of 2003, consolidated operating revenues rose 21.3
percent to $2.40 billion, from $1.98 billion for the first nine months of 2002.
Net premiums and fees for the first nine months of 2003 were $2.15 billion
compared to $1.75 billion in the same year-ago period. Consolidated net
investment income for the year-to-date period in 2003 was $208.6 million,
slightly higher than the $203.7 million recorded in the first nine months of
2002. While positive operating cash flow has continued to be additive to Old
Republic's invested asset base, a fairly consistent drop in interest rates in
recent years has had a negative impact on investment yields and resulting
investment income.
General Insurance Group
Old Republic's property and liability insurance business registered pretax
operating income of $64.8 million in this year's third quarter, which compares
to $46.8 million earned in the same period of 2002. Net premium revenues in the
latest quarterly period rose by 18.3 percent to $359.0 million, compared to
$303.4 million one year ago. The composite underwriting ratio for this year's
third quarter was 92.9 percent versus 98.6 percent in the same quarter one year
ago.
For the first nine months of 2003, pretax operating income rose by 41.3 percent
to $186.7 million when compared to $132.1 million posted in the like period of
2002. Net premiums earned were $1.01 billion versus $858.5 million a year ago,
for an increase of 17.9 percent. The composite underwriting ratio was 93.6
percent compared to 99.1 percent in the same period last year.
All of the improvement in General Insurance premium production resulted from a
better pricing environment that began in 2000, and from greater success in
securing new business in a commercial insurance market that remains relatively
tight. Underwriting results in the latest quarter and year-to-date period
continued to benefit from lower claims ratios, while posting relatively even
production and administrative expense portions of the composite underwriting
ratio. The latter represents the most widely accepted indicator of underwriting
performance in the industry, and Old Republic has now registered a composite
ratio below 100% for six consecutive quarters. The ratio reached a high of
118.8% in the third quarter of 1999 and has dropped fairly consistently to
successively lower quarterly levels since that time.
Mortgage Guaranty Group
Mortgage Guaranty pretax operating income in the third quarter was $69.1
million, down slightly from $70.8 million registered in the same period one year
ago. Net premiums earned in the latest quarter were $100.1 million, up 4.4
percent from $95.9 million in the year-ago quarter.
For the first nine months of 2003, Mortgage Guaranty pretax operating income
rose by 1.0 percent to $214.9 million from $212.7 million in the first nine
months of 2002. Net premiums earned totaled $298.9 million, rising by 7.3
percent from the $278.6 million earned in the same period of 2002. Mortgage
Guaranty investment income in both the third quarter and first nine months of
2003 reflected a rising invested asset base, though the aforementioned drop in
current investment yields has inhibited a corresponding growth in this revenue
source.
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Old Republic International Corporation
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For this year's third quarter and year-to-date periods, continued high levels of
refinancing activity enhanced mortgage guaranty insurance volume, with
traditional primary new insurance written growing by 42.3 percent and 33.5
percent, respectively, in comparison with 2002. The composite underwriting ratio
has trended higher in 2003. It amounted to 47.2 percent and 44.5 percent for the
third quarter and first nine months of 2003, respectively, versus 43.2 percent
and 41.3 percent for the same periods of 2002, respectively. The loss component
of this ratio has risen in each quarterly period of 2003. Higher levels of paid
claims and loan default rates were partially offset by reduced estimates of
claim reserve severity but nonetheless produced higher claim ratios in this
year's third quarter and first nine months. These trends to higher loss costs
have emerged since the final quarter of 2002 following a fairly consistent
downtrend that had begun some five years earlier. Expense ratios for this year's
third quarter and first nine months were significantly lower at 23.9 percent and
25.0 percent, respectively, than the equivalent ratios of 29.6 percent and 28.7
percent, respectively, posted in 2002. The lower expense ratios in 2003 reflect
greater operating efficiencies and enhanced cost controls. Expense ratios for
the third quarter and first nine months of 2002 were affected adversely by
increases of 5.0 percentage points and 1.7 percentage points, respectively, as a
result of certain non-recurring litigation costs.
Title Insurance Group
The Company's Title Insurance Group posted a substantial rise in pretax
operating income to a new record of $43.0 million in the third quarter of 2003.
This compares to $26.9 million registered in the same period of 2002. Premium
and fee revenues rose by 47.4 percent to $308.4 million in this year's third
quarter. For the first nine months of 2003, premium and fee revenues grew by
41.0 percent, while pretax operating income increased by 53.8 percent to $105.2
million from $68.4 million in the like period of 2002.
For each period of the current year, Title Insurance underwriting results were
aided by growing premium and fee revenues, resulting mostly from continued high
levels of mortgage refinancing activity and by maintenance of production and
operating costs within parameters of premium and fee revenue growth, offset
somewhat by relatively low though moderately rising claim costs.
Life and Health Group
Life and Health operating revenues were $12.0 million in this year's third
quarter and $43.6 million in the first nine months of the year. For 2003 pretax
operating earnings (losses) amounted to ($1.2) million in the third quarter and
$2.0 million in the first nine months of the year. These results compare to
pretax operating income of $1.3 million and $4.7 million in the same respective
quarter and year-to-date periods of 2002. Substantially all of the shortfall in
2003 earnings stemmed from a significant spike in term life insurance death
claims during this year's third quarter, and from a greater than average
lapsation of such policies issued in prior years. Policy lapses result in a drop
in premium income and thus a lower revenue base to absorb current costs.
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Old Republic International Corporation
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Cash, Invested Assets and Shareholders' Equity
Cash and invested assets at September 30, 2003, totaled $6.79 billion, or $56.21
per share, versus $6.16 billion, or $51.15 per share, at December 31, 2002, and
$5.92 billion, or $49.15 per share, at September 30, 2002. Consolidated
operating cash flow grew by 22.1 percent to $551.3 million for the first nine
months of 2003. Consolidated cash flow growth in this year's first nine months
resulted mostly from significant additions by the Company's General and Title
Insurance segments.
Effective January 1, 2003, the Corporation elected to reclassify fixed maturity
securities formerly categorized as held to maturity to the available for sale
classification. The securities involved are primarily utility and tax-exempt
bonds that account for approximately 31 percent of Old Republic's investment
portfolio. The decision was prompted by restrictive accounting rules applicable
to held to maturity investment securities. The necessarily mechanical
application of these rules can inhibit the Corporation's ability to optimally
manage its investments from a practical business point of view. As of September
30, 2003, the net impact of this reclassification on the Corporation's balance
sheet is to increase the carrying value of invested assets by $114.9 million,
deferred tax liabilities by $40.2 million, and shareholders' equity by $74.7
million, or approximately 62 cents per share. This change has no income
statement impact, no effect on Old Republic's ability to hold individual
securities to maturity as it may deem appropriate, and does not affect the
Company's necessary long-term orientation in the management of its business.
Going forward, Old Republic's shareholders' equity account could reflect
somewhat greater period-to-period volatility as the entire bond, note and stock
investment portfolio will now be marked to market on a quarterly basis.
Nevertheless, the Company believes that its ability to hold securities until
they mature or until such other time when they can be sold opportunistically are
much more important factors than their posted market value at any one point in
time.
Old Republic's investment portfolio reflects a current allocation of
approximately 85 percent in fixed-income investments and 8 percent in equities.
As has been the case for many years, it contains little or no exposure to real
estate investments, mortgage-backed securities, derivatives, junk bonds, private
placements or mortgage loans.
Common shareholders' equity grew by 13.2 percent to $3.57 billion at September
30, 2003, compared to the equivalent balance of $3.15 billion posted as of
December 31, 2002, and $3.04 billion at September 30, 2002. Book value per share
was $29.55 at the end of this year's third quarter, versus $26.17 at year-end
2002, and $25.28 at September 30, 2002.
Conference Call Information
Old Republic has scheduled a conference call today at 2:00 p.m. Central Time to
discuss its third quarter 2003 performance and related trends in its business.
To access this call, log on to www.oldrepublic.com 15 minutes before the call to
download the necessary software. Replays will be available through this website
for 30 days.
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Old Republic International Corporation
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About Old Republic
Chicago-based Old Republic International Corporation is an insurance holding
company whose subsidiaries market, underwrite and provide risk management
services for a wide variety of coverages in the property and liability, mortgage
guaranty, title and life and health insurance fields. One of the nation's 50
largest publicly owned insurance organizations, Old Republic has assets of
approximately $9.6 billion and shareholders' equity of nearly $3.6 billion. Its
current stock market valuation is approximately $4.1 billion.
Safe Harbor Statement
Historical data pertaining to the operating performance, liquidity, and other
financial indicators applicable to an insurance enterprise such as Old Republic
are not necessarily indicative of results to be achieved in succeeding years. In
addition to the factors cited below, the long-term nature of the insurance
business, seasonal and annual patterns in premium production and incidence of
claims, changes in yields obtained on invested assets, changes in government
policies and free markets affecting inflation rates and general economic
conditions, and changes in legal precedents or the application of law affecting
the settlement of disputed claims can have a bearing on period-to-period
comparisons and future operating results.
Some of the statements made in this News Release and Company published reports,
as well as oral statements or commentaries made by the Company's management in
conference calls following earnings releases, can constitute "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995. Any such forward-looking statements, commentaries, or inferences, of
necessity, involve assumptions, uncertainties, and risks that may affect the
Company's future performance. With regard to Old Republic's General Insurance
segment, its results can be affected in particular by the level of market
competition, which is typically a function of available capital and expected
returns on such capital among competitors, the levels of interest and inflation
rates, and periodic changes in claim frequency and severity patterns caused by
natural disasters, weather conditions, accidents, illnesses, work-related
injuries, and unanticipated external events. Mortgage Guaranty and Title
insurance results can be impacted by similar factors and most particularly by
changes in national and regional housing demand and values, the availability and
cost of mortgage loans, employment trends, and default rates on mortgage loans;
mortgage guaranty results may also be impacted by various risk-sharing
arrangements with business producers as well as the risk management and pricing
policies of government sponsored enterprises. Life and disability insurance
results can be affected by the levels of employment and consumer spending, as
well as mortality and health trends. At the parent company level, operating
earnings or losses are generally reflective of the amount of debt outstanding
and its cost, as well as interest income on temporary holdings of short-term
investments.
Any forward-looking statements or commentaries speak only as of their dates. Old
Republic undertakes no obligation to publicly update or revise all such
comments, whether as a result of new information, future events or otherwise,
and accordingly they may not be unduly relied upon.
For the latest news releases and other corporate documents
on Old Republic International
visit: www.oldrepublic.com
Financial Tables Follow....
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Old Republic International Corporation
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Old Republic International Corporation
FINANCIAL HIGHLIGHTS
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Quarters Ended Nine Months Ended
September 30, September 30,
--------------------------------- % --------------------------------- %
2003 2002 Change 2003 2002 Change
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<s> <c> <c> <c> <c> <c> <c>
NET INCOME:
Total $119,929,448 $96,358,301 24.5% $345,888,134 $299,430,982 15.5%
=============== =============== =============== ===============
Per Share: Basic $0.99 $0.80 23.7% $2.86 $2.48 15.3%
=============== =============== =============== ===============
Diluted $0.98 $0.79 24.1% $2.84 $2.46 15.4%
=============== =============== =============== ===============
Average number of common and
equivalent shares outstanding
Basic 120,858,089 120,549,496 120,849,307 120,529,081
=============== =============== =============== ===============
Diluted 122,301,762 121,487,344 121,911,773 121,558,013
=============== =============== =============== ===============
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COMPOSITION OF EARNINGS PER SHARE:
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Basic Earnings:
Net income, before items below $0.97 $0.82 18.3% $2.80 $2.42 15.7%
Realized investment gains (losses) 0.02 (0.02) 0.06 0.06
--------------- --------------- --------------- ---------------
Net income $0.99 $0.80 23.7% $2.86 $2.48 15.3%
=============== =============== =============== ===============
Diluted Earnings:
Net income, before items below $0.96 $0.81 18.5% $2.78 $2.40 15.8%
Realized investment gains (losses) 0.02 (0.02) 0.06 0.06
--------------- --------------- --------------- ---------------
Net income $0.98 $0.79 24.1% $2.84 $2.46 15.4%
=============== =============== =============== ===============
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BOOK VALUE PER SHARE (End of periods)(a):
As Reported $29.55 $25.28 16.9%
=============== ===============
Cost Basis $27.62 $24.53 12.6%
=============== ===============
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FINANCIAL SUMMARY ($ in Millions) :
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Operating Revenues:
General $407.0 $351.8 15.7% $1,157.1 $1,003.3 15.3%
Mortgage Guaranty 125.8 119.1 5.6% 375.1 344.8 8.8%
Title 314.5 215.0 46.3% 827.4 591.3 39.9%
Life & Health 12.0 16.4 -27.0% 43.6 44.5 -2.1%
Other 2.4 1.8 6.2 3.0
--------------- --------------- --------------- ---------------
Consolidated Operating Revenues 861.8 704.3 22.4% 2,409.5 1,987.1 21.3%
Realized Investment Gains (Losses) 4.5 (3.2) 10.5 10.9
--------------- --------------- --------------- ---------------
Total Revenues $866.4 $701.0 23.6% $2,420.1 $1,998.1 21.1%
=============== =============== =============== ===============
Pretax Operating Income (Loss):
General $64.8 $46.8 38.5% $186.7 $132.1 41.3%
Mortgage Guaranty 69.1 70.8 -2.4% 214.9 212.7 1.0%
Title 43.0 26.9 59.8% 105.2 68.4 53.8%
Life & Health (1.2) 1.3 -189.1% 2.0 4.7 -56.9%
Other (2.4) (1.0) (8.2) (5.3)
--------------- --------------- --------------- ---------------
Total 173.3 144.9 19.6% 500.7 412.7 21.3%
Realized Investment Gains (Losses) 4.5 (3.2) 10.5 10.9
--------------- --------------- --------------- ---------------
Revenues, Net of Expenses 177.9 141.6 25.6% 511.3 423.6 20.7%
Income Taxes 57.9 45.2 28.1% 165.2 123.9 33.3%
--------------- --------------- --------------- ---------------
Net Income $119.9 $96.3 24.5% $345.8 $299.4 15.5%
=============== =============== =============== ===============
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(a) "As Reported" in financial statements with all securities carried at market
value at September 30, 2003, and partially so at September 30, 2002. "Cost
Basis" calculation includes all investment securities at their currently
amortized original cost.
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Old Republic International Corporation
SEGMENTED OPERATING SUMMARY
($ in Millions)
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Net Pretax
Premiums Net Sales Operating Composite
& Fees Investment Other Operating Benefits & Other Total Income Underwriting
Segment Earned Income Income Revenues & Claims Expenses Expenses (Loss) Ratios
- ------------ ----------- ----------- ----------- ----------- ------------ ----------- ------------ ----------- ------------
<s> <c> <c> <c> <c> <c> <c> <c> <c> <c>
Quarter Ended September 30, 2003
- --------------------------------
General $359.0 $43.1 $4.8 $407.0 $242.3 $99.7 $342.1 $64.8 92.9%
Mortgage 100.1 16.2 9.4 125.8 23.2 33.4 56.7 69.1 47.2%
Title 308.4 5.9 0.1 314.5 17.2 254.2 271.4 43.0 88.1%
Life 10.4 1.4 0.1 12.0 6.5 6.6 13.2 (1.2) 125.0%
Other --- 2.4 --- 2.4 --- 4.9 4.9 (2.4) ---
-------------------------------------------------------------------------------------------------------- ------------
Consolidated $778.1 $69.1 $14.5 $861.8 $289.4 $399.0 $688.4 $173.3 86.0%
======================================================================================================== ============
Quarter Ended September 30, 2002
- --------------------------------
General $303.4 $43.3 $5.0 $351.8 $220.2 $84.7 $304.9 $46.8 98.6%
Mortgage 95.9 16.3 6.8 119.1 13.0 35.2 48.3 70.8 43.2%
Title 209.2 5.6 0.1 215.0 10.3 177.7 188.1 26.9 89.7%
Life 14.6 1.7 --- 16.4 9.5 5.5 15.1 1.3 102.6%
Other --- 1.8 --- 1.8 --- 2.8 2.8 (1.0) ---
-------------------------------------------------------------------------------------------------------- ------------
Consolidated $623.3 $68.8 $12.1 $704.3 $253.1 $306.2 $559.3 $144.9 87.3%
======================================================================================================== ============
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Nine Months Ended September 30, 2003
- ------------------------------------
General $1,012.0 $131.0 $14.0 $1,157.1 $690.7 $279.7 $970.4 $186.7 93.6%
Mortgage 298.9 49.0 27.2 375.1 58.3 101.9 160.2 214.9 44.5%
Title 809.3 17.6 0.4 827.4 45.0 677.0 722.1 105.2 89.3%
Life 38.6 4.7 0.2 43.6 19.3 22.2 41.5 2.0 106.9%
Other --- 6.1 --- 6.2 --- 14.4 14.4 (8.2) ---
-------------------------------------------------------------------------------------------------------- ------------
Consolidated $2,158.9 $208.6 $42.0 $2,409.5 $813.3 $1,095.4 $1,908.7 $500.7 85.8%
======================================================================================================== ============
Nine Months Ended September 30, 2002
- ------------------------------------
General $858.5 $129.5 $15.2 $1,003.3 $622.4 $248.8 $871.2 $132.1 99.1%
Mortgage 278.6 49.2 16.9 344.8 35.1 96.9 132.0 212.7 41.3%
Title 574.1 16.8 0.4 591.3 27.7 495.1 522.9 68.4 90.8%
Life 39.3 5.0 0.1 44.5 23.0 16.7 39.8 4.7 100.7%
Other --- 3.0 --- 3.0 --- 8.4 8.4 (5.3) ---
-------------------------------------------------------------------------------------------------------- ------------
Consolidated $1,750.7 $203.7 $32.7 $1,987.1 $708.3 $866.0 $1,574.4 $412.7 87.5%
======================================================================================================== ============
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Fiscal Twelve Months Ended September 30, 2003
- ---------------------------------------------
General $1,337.5 $174.0 $18.8 $1,530.4 $920.3 $373.3 $1,293.6 $236.7 94.4%
Mortgage 396.5 65.6 35.2 497.4 76.0 151.3 227.4 269.9 48.5%
Title 1,048.6 23.3 0.5 1,072.5 58.0 879.9 937.9 134.6 89.4%
Life 49.3 6.4 0.3 56.1 25.3 27.0 52.4 3.7 105.3%
Other --- 8.1 --- 8.2 --- 18.2 18.2 (10.0) ---
-------------------------------------------------------------------------------------------------------- ------------
Consolidated $2,832.2 $277.6 $55.0 $3,164.8 $1,079.8 $1,449.9 $2,529.8 $635.0 86.7%
======================================================================================================== ============
Fiscal Twelve Months Ended September 30, 2002
- ---------------------------------------------
General $1,124.6 $172.3 $20.4 $1,317.4 $823.5 $328.0 $1,151.6 $165.8 100.1%
Mortgage 369.8 65.5 23.4 458.8 48.0 129.2 177.2 281.5 41.5%
Title 750.8 22.4 0.6 774.0 34.8 648.8 683.7 90.3 90.7%
Life 51.5 6.7 0.2 58.5 30.4 22.4 52.9 5.6 102.2%
Other --- 6.2 --- 6.2 --- 11.6 11.6 (5.3) ---
-------------------------------------------------------------------------------------------------------- ------------
Consolidated $2,296.9 $273.3 $44.7 $2,615.1 $936.9 $1,140.1 $2,077.1 $538.0 87.7%
======================================================================================================== ============
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Old Republic International Corporation
SEGMENTED OPERATING STATISTICS
($ in Millions)
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Quarters Ended Nine Months Ended
September 30, September 30,
----------------------------------- -----------------------------------
2003 2002 2003 2002
----------------------------------- -----------------------------------
<s> <c> <c> <c> <c>
General Insurance:
Benefits and claims ratio 67.1% 73.0% 68.4% 73.2%
Expense ratio 25.8% 25.6% 25.2% 25.9%
---------------- ---------------- ---------------- ----------------
Composite ratio 92.9% 98.6% 93.6% 99.1%
================ ================ ================ ================
Paid loss ratio 55.0% 58.3% 54.4% 63.2%
================ ================ ================ ================
Mortgage Guaranty:
New insurance written: Traditional Primary $11,123.8 $7,819.3 $29,506.0 $22,093.7
Bulk 965.5 2,244.6 4,069.3 4,754.5
Other 1,511.3 1,349.6 4,907.5 5,616.6
---------------- ---------------- ---------------- ----------------
Total $13,600.6 $11,413.5 $38,482.8 $32,464.8
================ ================ ================ ================
Net risk in force: Traditional Primary $15,060.8 $15,446.9
Bulk 752.9 476.4
Other 491.7 434.0
---------------- ----------------
Total $16,305.4 $16,357.3
================ ===============
Earned premiums: Direct $117.5 $110.4 $348.6 $318.3
================ ================ ================ ================
Net $100.1 $95.9 $298.9 $278.6
================ ================ ================ ================
Persistency/Traditional Primary 43.0% 62.2%
================ ================
Delinquency ratio: Traditional Primary 3.8% 3.1%
================ ================
Bulk 5.0% 2.1%
================ ================
Claims ratio 23.3% 13.6% 19.5% 12.6%
Expense ratio 23.9% 29.6% 25.0% 28.7%
---------------- ---------------- ---------------- ----------------
Composite ratio 47.2% 43.2% 44.5% 41.3%
================ ================ ================ ================
Paid loss ratio 26.9% 15.5% 21.3% 15.3%
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Title Insurance:
Direct orders opened 115,083 138,785 417,557 325,029
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Direct orders closed 121,684 94,364 352,485 257,708
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Claims ratio 5.6% 4.9% 5.6% 4.8%
Expense ratio 82.5% 84.8% 83.7% 86.0%
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Composite ratio 88.1% 89.7% 89.3% 90.8%
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Paid loss ratio 3.1% 4.6% 2.8% 4.1%
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