NEWS BULLETIN
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Old Republic International Corporation
307 North Michigan Avenue, Chicago, Illinois 60601-5382, 312/346-8100
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For Further Information:
AT OLD REPUBLIC: AT FINANCIAL RELATIONS BOARD:
A.C. Zucaro Leslie Loyet
Chairman & CEO Analysts/Investors
(312) 346-8100 (312) 640-6672
lloyet@financialrelationsboard.com
AT FINANCIAL RELATIONS BOARD:
Tim Grace
Media Inquiries
(312) 640-6667
tgrace@financialrelationsboard.com
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FOR IMMEDIATE RELEASE NYSE: ORI
THURSDAY, JANUARY 26, 2006
OLD REPUBLIC REPORTS HIGHER FOURTH QUARTER
AND FULL YEAR NET OPERATING AND NET INCOME
Each Major Segment Shows Profit Growth
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Financial Highlights
(unaudited; amounts in millions except share data and
percentages; all per-share amounts are shown on a diluted basis and
have been restated retroactively to reflect all stock dividends
declared through December 31, 2005.)
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Quarters Ended December 31, Years Ended December 31,
2005 2004 Change 2005 2004 Change
------------------------------------------------------------------------------
<s> <c> <c> <c> <c> <c> <c>
Total Revenues $1,025.9 $921.8 11.3% $3,805.9 $3,491.6 9.0%
Net Operating Income $ 116.8 $ 83.9 39.2% $ 509.1 * $ 404.1 26.0%
Net Income $ 143.1 $100.4 42.5% $ 551.4 * $ 435.0 26.8%
Diluted Earnings Per Share:
Net Operating Income $ 0.50 $ 0.36 38.9% $ 2.19 * $ 1.75 25.1%
Net Income $ 0.61 $ 0.43 41.9% $ 2.37 * $ 1.89 25.4%
*Includes non-recurring income tax and related accumulated interest recovery of
$45.9 after tax, or 20 cents per share.
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CHICAGO--January 26, 2006--Old Republic International Corporation (NYSE: ORI),
today reported continued growth in consolidated revenues, as well as net
operating and net income for the fourth quarter and all of 2005. The company saw
higher premiums and fees as well as greater pretax operating income for its
three main segments: General, Mortgage Guaranty and Title Insurance.
Net operating and net income for 2005 includes a non-recurring recovery of
income taxes and related accumulated interest of $57.9 million ($45.9 million
net of tax or 20 cents per share). The recovery, received early in the year,
stems from a favorable resolution of the Company's claim for a permanent Federal
income tax refund applicable to the three years ended December 31, 1990.
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Consolidated pretax earnings for 2004 were adversely affected by certain
non-recurring expenses of $38.3 million consisting of: stock option compensation
charges of $5.6 million, representing the expense of a vesting acceleration of
stock option costs; title litigation settlement costs of $22.2 million; and a
write down of $10.5 million for previously deferred life insurance acquisition
costs. The post-tax effect of these 2004 charges was $29.0 million, or 13 cents
per share.
Consolidated Results
The major components of Old Republic's consolidated operating revenues and
income were as follows for the periods shown:
($ in millions except share data)
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Quarters Ended Years Ended
December 31, December 31,
------------------------------ ------------------------------
2005 2004 Change 2005 2004 Change
-------- -------- -------- -------- -------- --------
<s> <c> <c> <c> <c> <c> <c>
Operating revenues:
General insurance $ 511.1 $ 480.7 6.3% $2,017.6 $1,822.5 10.7%
Mortgage guaranty 129.4 123.2 5.1 516.0 489.9 5.3
Title insurance 313.2 272.0 15.1 1,108.6 1,051.8 5.4
Corporate and other 31.7 20.5 98.6 79.3
-------- -------- -------- -------- -------- --------
Total $ 985.5 $ 896.6 9.9% $3,741.0 $3,443.7 8.6%
======== ======== ======== ======== ======== ========
Pretax operating income (loss):
General insurance $ 91.1 $ 88.0 3.5% $ 350.0 $ 333.0 5.1%
Mortgage guaranty 55.2 53.8 2.6 243.7 224.5 8.6
Title insurance 22.3 (2.8) 870.7 88.7 62.5 41.9
Corporate and other 2.3 (11.0) (.1) (17.2)
-------- -------- -------- -------- -------- --------
Sub total 171.0 128.0 33.7 682.4 602.9 13.2
-------- -------- -------- -------- -------- --------
Realized investment gains (losses):
From sales 43.1 30.4 74.1 53.2
From impairments (2.7) (5.2) (9.2) (5.2)
-------- -------- -------- --------
Net realized gains 40.3 25.2 64.9 47.9
-------- -------- -------- -------- -------- --------
Consolidated pretax income 211.4 153.2 38.0 747.3 650.9 14.8
-------- -------- -------- -------- -------- --------
Income taxes 68.3 52.7 29.5 195.9 215.9 (9.3)
-------- -------- -------- -------- -------- --------
Net income $ 143.1 $ 100.4 42.5% $ 551.4 $ 435.0 26.8%
======== ======== ======== ======== ======== ========
Consolidated underwriting ratio:
Benefits and claims ratio 42.1% 42.5% 43.3% 42.0%
Expense ratio 47.4 50.3 45.2 47.3
-------- -------- -------- --------
Composite ratio 89.5% 92.8% 88.5% 89.3%
======== ======== ======== ========
Components of diluted earnings per share:
Net operating income before
non-recurring income tax
benefit $ 0.50 $ 0.36 38.9% $ 1.99 $ 1.75 13.7%
Non-recurring income tax benefit - - .20 -
-------- -------- -------- -------- -------- --------
Net operating income 0.50 0.36 38.9 2.19 1.75 25.1
Net realized investment gains 0.11 0.07 0.18 0.14
-------- -------- -------- -------- -------- --------
Net income $ 0.61 $ 0.43 41.9% $ 2.37 $ 1.89 25.4%
======== ======== ======== ======== ======== ========
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Consolidated results are provided in terms of both operating and net income to
highlight the effect of investment gain or loss recognition on period-to-period
comparisons. Recognition of such gains or losses can be highly discretionary and
arbitrary due to such factors as the timing of individual securities sales,
recognition of losses from write-downs of impaired securities, tax-planning
considerations, and changes in investment management judgments relative to the
direction of securities markets or the future prospects of individual investees
or industry sectors.
During the final quarters of 2005 and 2004, the Company liquidated approximately
55 percent and 50 percent, respectively, of its then actively managed equity
investment portfolios. As a result, above average net realized investment gains
of $40.3 million and $25.2 million, respectively, were registered in these
periods. A significant portion of the sales proceeds were redirected toward
index-style investment portfolios. Approximately 87 percent and 40 percent of
total equity investments at December 31, 2005, and 2004, respectively, were
committed to such indexed portfolios, and the remaining 13 percent and 60
percent, respectively, represented actively managed equity investment holdings.
General Insurance Results
Key indicators of Old Republic's General Insurance performance follow:
($ in millions)
------------------------------------------------------------------------
Quarters Ended Years Ended
December 31, December 31,
-------------------------------- --------------------------------
2005 2004 Change 2005 2004 Change
-------- -------- -------- -------- -------- --------
<s> <c> <c> <c> <c> <c> <c>
Net premiums earned $ 455.2 $ 428.8 6.2% $1,805.2 $1,623.0 11.2%
Net investment income 52.2 48.2 8.3 197.0 183.4 7.4
Pretax operating income $ 91.1 $ 88.0 3.5% $ 350.0 $ 333.0 5.1%
======== ======== ======== ======== ======== =========
Claims ratio 66.1% 65.7% 66.9% 65.9%
Expense ratio 25.3 24.9 24.6 24.8
-------- -------- -------- --------
Composite ratio 91.4% 90.6% 91.5% 90.7%
======== ======== ======== ========
General Insurance earned premiums continued to reflect the positive pricing and
risk selection changes effected during the past few years, as well as additional
business produced in an environment marked by reasonably stable underwriting
discipline on the part of many competitors. Underwriting results in the latest
quarter and year benefited from relatively stable overall claims ratios, and
firm production and administrative expense control. Claim costs attributable to
hurricane damages added less than one percentage point to 2005's composite
ratio. The composite underwriting ratio represents the most widely accepted
indicator of underwriting performance in the industry, and Old Republic has now
registered a favorable general insurance composite ratio below 100 percent for
15 consecutive quarters. The increase in general insurance pretax income in the
final quarter and twelve months of 2005 was mostly due to rising net investment
income.
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Mortgage Guaranty Results
Old Republic's Mortgage Guaranty Group performed within expectations for 2005.
Key indicators of this segment's performance follow:
($ in millions)
------------------------------------------------------------------------
Quarters Ended Years Ended
December 31, December 31,
-------------------------------- --------------------------------
2005 2004 Change 2005 2004 Change
-------- -------- -------- -------- -------- --------
<s> <c> <c> <c> <c> <c> <c>
Net premiums earned $ 107.9 $ 101.6 6.2% $ 429.5 $ 403.2 6.5%
Net investment income 17.8 17.4 2.3 70.1 67.7 3.5
Pretax operating income $ 55.2 $ 53.8 2.6% $ 243.7 $ 224.5 8.6%
======== ======== ======== ======== ======== ========
Claims ratio 42.5% 38.9% 37.2% 35.5%
Expense ratio 22.8 25.3 22.4 25.6
-------- -------- -------- --------
Composite ratio 65.3% 64.2% 59.6% 61.1%
======== ======== ======== ========
For both the final quarter and twelve months of 2005, Old Republic's Mortgage
Guaranty segment reflected moderate operating income growth mainly from its
underwriting/service functions. Net premiums earned rose by mid-single digits
principally due to bulk business growth as well as a higher average premium rate
on traditional primary business production. The composite underwriting ratios
for 2005 periods were stable to moderately lower for the year in comparison to
the same periods of 2004 due to a decline in the sales and operating expense
component.
Title Insurance Results
Old Republic's Title Insurance segment turned in much improved results in both
the final quarter and twelve-month period of 2005. Key indicators of that
performance follow:
($ in millions)
------------------------------------------------------------------------
Quarters Ended Years Ended
December 31, December 31,
-------------------------------- --------------------------------
2005 2004 Change 2005 2004 Change
-------- -------- -------- -------- -------- --------
<s> <c> <c> <c> <c> <c> <c>
Net premiums and
fees earned $ 306.2 $ 265.3 15.4% $1,081.8 $1,025.2 5.5%
Net investment income 6.8 6.5 4.5 26.0 25.5 1.7
Pretax operating income (loss) $ 22.3 $ (2.8) 870.7% $ 88.7 $ 62.5 41.9%
======== ======== ======== ======== ======== ========
Claims ratio 6.2% 5.9% 6.0% 5.8%
Expense ratio 88.8 97.6 88.2 90.5
-------- -------- -------- --------
Composite ratio 95.0% 103.5% 94.2% 96.3%
======== ======== ======== ========
During 2005, housing and mortgage lending trends were relatively uneven in many
parts of the nation. Net premiums and fees earned by Old Republic's Title
Insurance group reflected this environment. Year over year the Group's premium
and fee revenues were down by 1 percent in the first quarter, down by 2.6
percent in the second quarter, up by nearly 10 percent in the third quarter, and
up by 15.4 percent in the final quarter of the year. Pretax operating earnings
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for this segment generally followed these quarterly revenue patterns. While the
claims ratio was relatively stable for each quarterly period of 2005, the
expense component of the ratio was impacted favorably by expense control efforts
and by production and other costs that rose at a slower pace than revenues. As
previously noted, both fourth quarter and full year 2005 comparisons with 2004
benefited from the absence of $22.2 million in litigation settlement costs
incurred by Title operations in the final quarter of 2004.
Corporate and Other Operations
Combined results for Old Republic's small life and health insurance business and
corporate services reflected a pretax operating deficit of $0.1 million and
pretax operating income of $2.3 million for all of 2005 and the fourth quarter
of the year, respectively. For the same periods of 2004, the operating deficits
amounted to $17.2 million and $11.0 million, respectively. Results for 2005 are
reflective of holding company expenses and debt service costs, net internal
services costs, income on short-term investment holdings, and higher earnings
from Old Republic's small book of life and accident and health business. As
previously noted, fourth quarter and full year 2004 results for these combined
operations were penalized by a $10.5 million charge for previously deferred term
life acquisition costs.
Cash, Invested Assets and Shareholders' Equity
The following table shows the growth in consolidated cash and invested assets
and shareholders' equity, along with the related per share amounts as of the
dates shown:
($ in millions, except share data)
----------------------------------------
December 31,
---------------------
2005 2004 Change
-------- -------- --------
<s> <c> <c> <c>
Cash and invested assets:
Total $7,939.9 $7,519.5 5.6%
Per share 34.59 32.95 5.0
Shareholders' equity:
Total: as reported 4,024.0 3,865.6 4.1
at cost 3,973.9 3,695.0 7.5
Per Share: as reported 17.53 16.94 3.5
at cost $ 17.31 $ 16.19 6.9%
======== ======== ========
Total Annual Return (*)
Book Return 11.2% 10.8%
Market Return 10.3% 1.8%
======== ========
(*) Total book return represents the sum of each year's dividend yield as a
percentage of book value per share at the beginning of the year, plus the year's
percentage change in such book value. Total market return represents the sum of
the annual percentage change in the closing price per share and each year's cash
dividend as a percentage of the closing price at the preceding year-end.
Consolidated operating cash flow amounted to $880.0 million in 2005 versus
$828.3 million for the preceding year. Each of the Company's major segments
registered positive operating cash flow for 2005 and 2004.
Old Republic's high quality investment portfolio reflects a current allocation
of approximately 88 percent in fixed-income investments and 7 percent in
equities. As has been the case for many years, it contains little or no exposure
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to real estate investments, mortgage-backed securities, derivatives, junk bonds,
private placements or mortgage loans. The rise in the shareholders' equity
account for 2005 resulted mostly from earnings retained in excess of cash
dividends paid to shareholders, and from changes in unrealized securities gains
or losses. Equity per share as reported is inclusive of unrealized gains or
losses on investments whereas cost basis amounts are exclusive of such gains and
losses.
Fourth Quarter Special Cash and Stock Dividends
On December 8, 2005, the Board of Directors approved the payment of a special
year-end cash dividend of 80 cents per share of common stock. Together with the
previously declared regular quarterly cash dividends aggregating 51 cents per
share for the year, the special dividend brought the total 2005 payout to $1.31
per share. On the same date, the Directors also declared a 25 percent stock
dividend in the form of a 5-for-4 stock split on the Company's outstanding
common stock. The additional shares have increased the total common shares
outstanding to approximately 229.5 million shares as of December 31, 2005.
Old Republic has paid regular cash dividends without interruption for the past
64 years. According to the Fall 2005 edition of Mergent's Dividend Achievers,
the Company is just one of 127 businesses from among 10,000-plus publicly held
American corporations that have posted at least 23 consecutive years of annual
dividend increases through 2005.
Conference Call Information
Old Republic has scheduled a conference call today at 2:00 p.m. Central Time to
discuss its 2005 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.
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 primarily in the property and
liability, mortgage guaranty, and title insurance fields. One of the nation's 50
largest publicly owned insurance organizations, Old Republic has assets of
approximately $11.5 billion and shareholders' equity of $4.0 billion or $17.53
per share. Its current stock market valuation is approximately $4.7 billion, or
$20.72 per share.
Safe Harbor Statement
Historical data pertaining to the operating results, liquidity, and other
performance 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 and other 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
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conference calls following earnings releases, can constitute "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995. Of necessity, any such forward-looking statements, commentaries, or
inferences, 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.
Additionally, mortgage guaranty results, in particular, may also be affected by
various risk-sharing arrangements with business producers as well as the risk
management and pricing policies of government sponsored enterprises. Life and
health insurance earnings can be affected by the levels of employment and
consumer spending, variations in mortality and health trends, and changes in
policy lapsation rates. At the parent holding company level, operating earnings
or losses are generally reflective of the amount of debt outstanding and its
cost, interest income on temporary holdings of short-term investments, and
period-to-period variations in the costs of administering the Company's
widespread operations.
Any forward-looking statements or commentaries speak only as of their dates. Old
Republic undertakes no obligation to publicly update or revise any and 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 Corporation
Visit: www.oldrepublic.com
Financial Tables Follow....
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Old Republic International Corporation
FINANCIAL HIGHLIGHTS (*)
($ in Millions, Except Share Data)
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Quarters Ended Years Ended
December 31, December 31,
--------------------------------- ----------------------------------
2005 2004 Change 2005 2004 Change
------------------------------------------- --------------------------------------------
<s> <c> <c> <c> <c> <c> <c>
NET INCOME:
Total $143.1 $100.4 42.5% $551.4 $435.0 26.8%
=============== =============== ================ ===============
Per Share: Basic $0.62 $0.44 40.9% $2.40 $1.91 25.7%
=============== =============== ================ ===============
Diluted $0.61 $0.43 41.9% $2.37 $1.89 25.4%
=============== =============== ================ ===============
Average number of shares outstanding:
Basic 229,511,029 228,195,623 229,487,273 228,177,278
=============== =============== ================ ================
Diluted 232,587,552 230,943,065 232,108,491 230,759,540
=============== =============== ================ ================
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COMPOSITION OF EARNINGS PER SHARE:
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Basic Earnings:
Net operating income $0.51 $0.37 37.8% $2.22 $1.77 25.4%
Realized investment gains 0.11 0.07 0.18 0.14
--------------- ---------------- ---------------- ----------------
Net income $0.62 $0.44 40.9% $2.40 $1.91 25.7%
=============== ================ ================ ================
Diluted Earnings:
Net operating income $0.50 $0.36 38.9% $2.19 $1.75 25.1%
Realized investment gains 0.11 0.07 0.18 0.14
--------------- ---------------- ---------------- ----------------
Net income $0.61 $0.43 41.9% $2.37 $1.89 25.4%
=============== ================ ================ ================
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FINANCIAL POSITION SUMMARY:
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December 31,
-----------------------------------
2005 2004
---------------- ----------------
Assets:
Cash and fixed maturity securities $7,221.1 $6,905.2
Equity securities 552.4 459.0
Other invested assets 166.3 155.2
Accounts and premiums receivable 803.4 590.1
Reinsurance balances recoverable 2,167.2 1,846.5
Sundry assets 632.5 614.5
---------------- ----------------
Total $11,543.2 $10,570.8
================ ================
Liabilities and Shareholders' Equity:
Policy liabilities $1,228.1 $1,079.1
Benefit and claim reserves 4,939.8 4,403.5
Federal income tax payable: current 129.3 8.4
deferred 421.6 554.5
Debt 142.7 143.0
Sundry liabilities 657.4 516.5
Shareholders' equity 4,024.0 3,865.6
---------------- ----------------
Total $11,543.2 $10,570.8
================ ================
Number of shares outstanding 229,575,404 228,204,431
================ ================
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(*) Per share data reflect adjustments for the 25% stock dividend issued in December 2005.
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Old Republic International Corporation
SEGMENTED OPERATING SUMMARY
($ 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 December 31, 2005
- -------------------------------
General $455.2 $52.2 $3.5 $511.1 $301.0 $118.9 $419.9 $91.1 91.4%
Mortgage 107.9 17.8 3.6 129.4 45.9 28.2 74.1 55.2 65.3%
Title 306.2 6.8 0.1 313.2 18.9 272.0 290.9 22.3 95.0%
Other 16.9 3.7 10.9 31.7 7.7 21.6 29.3 2.3 ---
------------------------------------------------------------------------------------------------------ -------------
Consolidated $886.4 $80.7 $18.3 $985.5 $373.6 $440.8 $814.4 $171.0 89.5%
====================================================================================================== =============
Quarter Ended December 31, 2004
- -------------------------------
General $428.8 $48.2 $3.7 $480.7 $281.7 $110.9 $392.7 $88.0 90.6%
Mortgage 101.6 17.4 4.0 123.2 39.5 29.8 69.3 53.8 64.2%
Title 265.3 6.5 0.1 272.0 15.6 259.3 274.9 (2.8) 103.5%
Other 16.4 3.9 0.1 20.5 8.2 23.2 31.5 (11.0) ---
------------------------------------------------------------------------------------------------------ -------------
Consolidated $812.3 $76.2 $8.0 $896.6 $345.2 $423.4 $768.6 $128.0 92.8%
====================================================================================================== =============
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended December 31, 2005
- ----------------------------
General $1,805.2 $197.0 $15.3 $2,017.6 $1,206.8 $460.7 $1,667.5 $350.0 91.5%
Mortgage 429.5 70.1 16.4 516.0 159.7 112.5 272.2 243.7 59.6%
Title 1,081.8 26.0 0.7 1,108.6 64.8 955.0 1,019.8 88.7 94.2%
Other 70.3 16.9 11.3 98.6 34.0 64.7 98.7 (0.1) ---
------------------------------------------------------------------------------------------------------ -------------
Consolidated $3,386.9 $310.1 $43.9 $3,741.0 $1,465.4 $1,593.0 $3,058.5 $682.4 88.5%
====================================================================================================== =============
Year Ended December 31, 2004
- ----------------------------
General $1,623.0 $183.4 $16.0 $1,822.5 $1,069.5 $419.9 $1,489.5 $333.0 90.7%
Mortgage 403.2 67.7 18.9 489.9 143.2 122.1 265.3 224.5 61.1%
Title 1,025.2 25.5 0.9 1,051.8 59.7 929.5 989.2 62.5 96.3%
Other 64.6 14.0 0.7 79.3 35.4 61.1 96.6 (17.2) ---
------------------------------------------------------------------------------------------------------ -------------
Consolidated $3,116.1 $290.8 $36.7 $3,443.7 $1,307.9 $1,532.7 $2,840.7 $602.9 89.3%
====================================================================================================== =============
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Old Republic International Corporation
SEGMENTED OPERATING STATISTICS
($ in Millions)
- ------------------------------------------------------------------------------------------------------------------------------------
Quarters Ended Years Ended
December 31, December 31,
--------------------------------- ---------------------------------
2005 2004 2005 2004
--------------------------------- ---------------------------------
<s> <c> <c> <c> <c>
General Insurance:
Benefits and claims ratio 66.1% 65.7% 66.9% 65.9%
Expense ratio 25.3% 24.9% 24.6% 24.8%
--------------- --------------- --------------- ---------------
Composite ratio 91.4% 90.6% 91.5% 90.7%
=============== =============== =============== ===============
Paid loss ratio 59.8% 55.3% 53.4% 52.1%
=============== =============== =============== ===============
Mortgage Guaranty:
New insurance written: Traditional Primary $4,968.9 $5,668.7 $20,554.5 $24,749.4
Bulk 2,478.3 1,351.6 9,944.3 4,487.8
Other 435.0 523.5 498.2 7,324.7
--------------- --------------- --------------- ---------------
Total $7,882.3 $7,544.0 $30,997.1 $36,562.0
=============== =============== =============== ===============
Net risk in force: Traditional Primary $14,711.2 $15,452.2
Bulk 1,758.8 834.8
Other 586.1 580.9
--------------- ---------------
Total $17,056.2 $16,868.0
=============== ===============
Earned premiums: Direct $128.3 $122.7 $508.0 $483.6
=============== =============== =============== ===============
Net $107.9 $101.6 $429.5 $403.2
=============== =============== =============== ===============
Persistency/Traditional Primary 65.5% 64.5%
=============== ===============
Delinquency ratio: Traditional Primary 4.67% 4.11%
=============== ===============
Bulk 3.67% 4.59%
=============== ===============
Claims ratio 42.5% 38.9% 37.2% 35.5%
Expense ratio 22.8% 25.3% 22.4% 25.6%
--------------- --------------- --------------- ---------------
Composite ratio 65.3% 64.2% 59.6% 61.1%
=============== =============== =============== ===============
Paid loss ratio 35.3% 32.8% 33.7% 30.7%
=============== =============== =============== ===============
Title Insurance:
Direct orders opened 83,133 90,301 394,094 405,487
=============== =============== =============== ===============
Direct orders closed 74,600 79,891 328,239 341,355
=============== =============== =============== ===============
Claims ratio 6.2% 5.9% 6.0% 5.8%
Expense ratio 88.8% 97.6% 88.2% 90.5%
--------------- --------------- --------------- ---------------
Composite ratio 95.0% 103.5% 94.2% 96.3%
=============== =============== =============== ===============
Paid loss ratio 3.2% 5.6% 4.3% 4.1%
=============== =============== =============== ===============
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