1
As in effect
3/1/61
FORM 10K/A1
--------------------
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
--------------------
AMENDMENT TO APPLICATION OR REPORT
Filed Pursuant to Sections 12, 13, or 15 (d) of
THE SECURITIES EXCHANGE ACT OF 1934
OLD REPUBLIC INTERNATIONAL CORPORATION
- -------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
AMENDMENT NO. 1
---
The undersigned registrant hereby amends the following items,
financial statements, exhibits or other portions of its ANNUAL
REPORT FOR 1997 on Form 10-K as set forth in the pages attached
hereto:(List all such items, financial statements, exhibits other
portions amended)
SEE INDEX
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this amendment to be signed
on its behalf by the undersigned, thereunto duly authorized.
OLD REPUBLIC INTERNATIONAL CORPORATION
--------------------------------------
(Registrant)
Date: April 15, 1998 By: /s/ Paul D. Adams
-------------- -------------------------------
(Signature)
Paul Dennis Adams
Senior Vice President,
Chief Financial Officer
and Treasurer
Total Pages: 11
---------------
2
INDEX
FINANCIAL STATEMENT SCHEDULES
- -------------------------------
Report of Independent Accountants
OLD REPUBLIC INTERNATIONAL CORPORATION AND SUBSIDIARIES
Schedule I - Summary of Investments - Other than Investments in Related
Parties as of December 31, 1997
Schedule II - Condensed Financial Information of Registrant for the years
ended December 31, 1997, 1996 and 1995
Schedule III - Supplementary Insurance Information for the years ended
December 31, 1997, 1996 and 1995
Schedule IV - Reinsurance for the years ended December 31, 1997, 1996 and 1995
Schedule VI - Supplemental Information Concerning Property - Casualty
Insurance Operations for the years ended December 31, 1997,
1996 and 1995
Schedules other than those listed are omitted for the reason that they are not
required, are not applicable or that equivalent information has been included in
the financial statements, and notes thereto, or elsewhere herein.
EXHIBITS *
- ----------
(28) Consolidated Schedule P.
* Not covered in the Report of Independent Accountants.
3
REPORT OF INDEPENDENT ACCOUNTANTS
---------------------------------
To the Board of Directors and Shareholders of
Old Republic International Corporation
Chicago, Illinois
Our report on the consolidated financial statements of Old Republic
International Corporation and subsidiaries as of December 31, 1997 and 1996, and
for each of the three years in the period ended December 31, 1997 is included on
page 53 of the Corporation's Annual Report on Form 10-K. In connection with our
audits of such financial statements, we have also audited the related financial
statement schedules listed in the index on page 2 of this Form 10K/A1 amendment.
In our opinion, the financial statement schedules referred to above, when
considered in relation to the basic financial statements taken as a whole,
present fairly, in all material respects, the information required to be
included therein.
/s/ Coopers & Lybrand, L.L.P.
Chicago, Illinois
March 18, 1998
4
OLD REPUBLIC INTERNATIONAL CORPORATION AND SUBSIDIARIES
SCHEDULE I - SUMMARY OF INVESTMENTS - OTHER THAN INVESTMENTS IN RELATED PARTIES
As of December 31, 1997
($ in Thousands)
---------------------------------------------------------------------------------------------------------
Column A Column B Column C Column D
------------- ------------- ------------- -------------
Amount at
Fair which shown in
Type of investment Cost (a) Value balance sheet
------------- ------------- -------------
Held to maturity:
Fixed maturity securities:
States, municipalities and political subdivisions $ 1,247,013 $ 1,284,434 $ 1,247,013
Public utilities 1,001,874 1,020,909 1,001,874
Redeemable preferred stocks 831 859 831
------------- ------------- -------------
2,249,718 $ 2,306,202 2,249,718
------------- ============= -------------
Other long-term investments:
Mortgage loans on real estate 7,669 7,669
Policy loans 2,238 2,238
Other long-term investments 5,573 5,573
------------- -------------
15,481 15,481
------------- -------------
Total 2,265,199 2,265,199
------------- -------------
Available for sale:
Fixed maturity securities:
United States Government and government
agencies and authorities 631,328 $ 654,589 654,589
Foreign government 27,266 29,893 29,893
Corporate, industrial and all other 1,295,999 1,325,493 1,325,493
------------- ------------- -------------
1,954,593 $ 2,009,975 2,009,975
------------- ============= -------------
Equity Securities:
Nonredeemable preferred stocks 2,965 $ 3,283 3,283
Common stocks:
Banks, trusts and insurance companies 4,049 10,956 10,956
Industrial, miscellaneous and all other 53,917 102,940 102,940
------------- ------------- -------------
60,931 $ 117,179 117,179
------------- ============= -------------
Short-term investments 328,081 328,081
------------- -------------
Total 2,343,605 2,455,235
------------- -------------
Total Investments $ 4,608,804 $ 4,720,435
============= =============
Note: (a) Represents original cost of equity securities, and as to fixed
maturities, original cost reduced by repayments and adjusted for
amortization of premium or accrual of discount.
5
OLD REPUBLIC INTERNATIONAL CORPORATION AND SUBSIDIARIES
SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT
BALANCE SHEETS
OLD REPUBLIC INTERNATIONAL CORPORATION (PARENT COMPANY)
($ in Thousands)
-----------------------------------------------------------------------------------------------------------
December 31,
----------------------------
1997 1996
------------ ------------
Assets:
Bonds and notes $ 9,500 $ 12,100
Cash --- 2,143
Short-term investments 84,370 2,303
Investments in, and indebtedness of related parties:
Subsidiaries and affiliates, at equity 2,107,315 1,967,558
Indebtedness of affiliates 70,213 67,604
Preferred stock, at cost 13,000 20,500
Other assets 17,189 6,859
------------ ------------
Total Assets $ 2,301,589 $ 2,079,069
============ ============
Liabilities, Preferred Stock
and Common Shareholders' Equity:
Liabilities:
Accounts payable and accrued expenses $ 17,243 $ 15,352
Debt and debt equivalents 121,041 8,885
Indebtedness to affiliates and subsidiaries 10,119 134,180
Commitments and contingent liabilities --- ---
------------ ------------
Total Liabilities 148,404 158,418
------------ ------------
Redeemable convertible preferred stock --- 19,348
Convertible preferred stock 1,022 1,275
------------ ------------
Total Preferred Stock 1,022 20,623
------------ ------------
Common Shareholders' Equity:
Common stock 103,133 96,011
Additional paid-in capital 604,356 575,610
Unallocated shares - ESSOP (6,100) ---
Net unrealized appreciation of equity securities 72,472 43,442
Retained earnings 1,478,867 1,223,391
Treasury stock (at cost) (100,567) (38,428)
------------ ------------
Total Common Shareholders' Equity 2,152,163 1,900,028
------------ ------------
Total Liabilities, Preferred Stock and
and Common Shareholders' Equity $ 2,301,589 $ 2,079,069
============ ============
6
OLD REPUBLIC INTERNATIONAL CORPORATION AND SUBSIDIARIES
SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT
STATEMENTS OF INCOME
OLD REPUBLIC INTERNATIONAL CORPORATION (PARENT COMPANY)
($ in Thousands)
---------------------------------------------------------------------------------------------------------
Years Ended December 31,
-----------------------------------------
1997 1996 1995
----------- ----------- -----------
Revenues:
Investment income from subsidiaries $ 7,252 $ 7,856 $ 7,273
Real estate and other income 3,250 3,081 3,110
Other investment income 2,274 986 478
----------- ----------- -----------
Total Revenues 12,778 11,923 10,862
----------- ----------- -----------
Expenses:
Interest -- subsidiaries 4,914 6,754 5,820
Interest -- other 4,253 4,015 17,469
Real estate and other expenses 2,274 2,470 2,356
General expenses, taxes and fees 5,937 10,706 3,975
----------- ----------- -----------
Total Expenses 17,379 23,947 29,622
----------- ----------- -----------
Revenues, net of expenses (4,600) (12,023) (18,759)
Federal income tax credits (2,221) (4,315) (7,302)
----------- ----------- -----------
Income (loss) before item below (2,379) (7,707) (11,457)
Extraordinary item, net of tax credits --- (4,497) ---
----------- ----------- -----------
Income (loss) before equity in earnings of subsidiaries (2,379) (12,205) (11,457)
Equity in Earnings of Subsidiaries:
Dividends 226,685 152,875 106,899
Earnings in excess of dividends 73,816 89,695 117,259
----------- ----------- -----------
Net Income $ 298,122 $ 230,365 $ 212,702
=========== =========== ===========
7
OLD REPUBLIC INTERNATIONAL CORPORATION AND SUBSIDIARIES
SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT
STATEMENTS OF CASH FLOWS
OLD REPUBLIC INTERNATIONAL CORPORATION (PARENT COMPANY)
($ in Thousands)
---------------------------------------------------------------------------------------------------------
Years Ended December 31,
-----------------------------------------
1997 1996 1995
----------- ----------- -----------
Cash flows from operating activities:
Net income $ 298,122 $ 230,365 $ 212,702
Change in non-cash items:
Accounts receivable (409) 219 (229)
Income taxes - net (3,205) (10,264) 2,982
Excess of equity in net income of subsidiaries
over dividends received (101,322) (89,695) (117,259)
Accounts payable, accrued expenses and other (4,805) 2,072 (2,240)
----------- ----------- -----------
Total 188,380 132,696 95,955
----------- ----------- -----------
Cash flows from investing activities:
Sales of fixed maturity securities 2,600 --- ---
Sales of other investments 204 227 209
Sales of fixed assets for company use 107 126 ---
Purchases of fixed maturity securities --- --- (3,000)
Purchases of fixed assets for company use --- --- (183)
Investments in, and indebtedness of related parties - net (124,897) 2,769 (20,861)
----------- ----------- -----------
Total (121,985) 3,123 (23,836)
----------- ----------- -----------
Cash flows from financing activities:
Issuance of debentures and notes 115,000 --- ---
Issuance of preferred and common stock 7,381 17,423 14,591
Repayment of term loans --- (1,000) (1,000)
Redemption of debentures and notes --- (105,084) ---
Issuance of treasury stock --- --- 2,370
Dividends on common shares (44,939) (35,915) (26,773)
Dividends on preferred shares (1,773) (7,662) (7,949)
Purchase of treasury stock (62,138) --- (903)
Purchase of cumulative preferred stock --- --- (20)
Redemption of cumulative preferred stock --- (54,802) ---
----------- ----------- -----------
Total 13,528 (187,042) (19,685)
----------- ----------- -----------
Increase (decrease) in cash and short-term investments 79,923 (51,222) 52,434
Cash and short-term investments, beginning of year 4,447 55,669 3,235
----------- ----------- -----------
Cash and short-term investments, end of year $ 84,370 $ 4,447 $ 55,669
=========== =========== ===========
8
OLD REPUBLIC INTERNATIONAL CORPORATION AND SUBSIDIARIES
SCHEDULE III - SUPPLEMENTARY INSURANCE INFORMATION
For the years ended December 31, 1997, 1996 and 1995
($ in Thousands)
--------------------------------------------------------------------------------------------------------------------
Column A Column B Column C Column D Column E Column F
------------------------------- -------------- -------------- -------------- -------------- --------------
Future Policy
Deferred Benefits, Other Policy
Policy Losses, Claims and
Acquisition Claims and Unearned Benefits Premium
Segment Costs Loss Expenses Premiums Payable Revenue
------------------------------- -------------- -------------- -------------- -------------- --------------
Year Ended December 31, 1997:
----------------------------
Insurance Underwriting:
General Insurance Group $56,489 $1,919,323 $289,858 $59,483 $906,342
Mortgage Insurance Group 45,392 150,821 46,383 371 271,005
Title Insurance Group --- 206,928 --- 350 238,672
Life Insurance Group 24,319 142,091 --- 970 48,653
Reinsurance Losses Recoverable (a) --- 1,293,937 39,563 --- ---
-------------- -------------- -------------- -------------- --------------
Total Insurance Underwriting 126,201 3,713,101 375,805 61,175 1,464,674
Corporate --- --- --- --- ---
-------------- -------------- -------------- -------------- --------------
Consolidated $126,201 $3,713,101 $375,805 $61,175 $1,464,674
============== ============== ============== ============== ==============
Year Ended December 31, 1996:
----------------------------
Insurance Underwriting:
General Insurance Group $54,263 $1,900,624 $289,041 $62,599 $867,662
Mortgage Insurance Group 41,769 119,026 58,320 717 226,597
Title Insurance Group --- 205,309 --- 420 220,216
Life Insurance Group 18,570 143,694 --- 1,573 46,006
Reinsurance Losses Recoverable (a) --- 1,356,757 39,446 --- ---
-------------- -------------- -------------- -------------- --------------
Total Insurance Underwriting 114,603 3,725,412 386,808 65,311 1,360,483
Corporate --- --- --- --- ---
-------------- -------------- -------------- -------------- --------------
Consolidated $114,603 $3,725,412 $386,808 $65,311 $1,360,483
============== ============== ============== ============== ==============
Year Ended December 31, 1995:
----------------------------
Insurance Underwriting:
General Insurance Group $53,046 $1,890,409 $291,545 $70,718 $851,182
Mortgage Insurance Group 37,379 90,534 73,019 598 175,277
Title Insurance Group --- 204,489 --- 493 183,351
Life Insurance Group 17,459 147,349 --- 3,643 41,980
Reinsurance Losses Recoverable (a) --- 1,373,089 42,200 --- ---
-------------- -------------- -------------- -------------- --------------
Total Insurance Underwriting 107,885 3,705,871 406,765 75,454 1,251,792
Corporate --- --- --- --- ---
-------------- -------------- -------------- -------------- --------------
Consolidated $107,885 $3,705,871 $406,765 $75,454 $1,251,792
============== ============== ============== ============== ==============
Note:(a) Effective January 1, 1993, the Company adopted Financial Accounting
Standard (FAS) No. 113 "Accounting and Reporting for Reinsurance of
Short-Duration and Long-Duration Contracts" which eliminates the reporting
of assets and liabilities relating to reinsured contracts net of
reinsurance ceded balances. Accordingly, reinsured losses and unearned
premiums are to be reported as assets. Assets and liabilities were, as a
result, increased by corresponding amounts of approximately $1.3 billion at
December 31, 1997, $1.3 billion at December 31, 1996 and $1.4 billion at
December 31, 1995. FAS No. 113 did not any effect on the Company's results
of operations.
OLD REPUBLIC INTERNATIONAL CORPORATION AND SUBSIDIARIES
SCHEDULE III - SUPPLEMENTARY INSURANCE INFORMATION
For the years ended December 31, 1997, 1996 and 1995
($ in Thousands)
--------------------------------------------------------------------------------------------------------------------
Column A Column G Column H Column I Column J Column K
------------------------------- -------------- -------------- -------------- -------------- --------------
Benefits, Amortization
Claims, of Deferred
Net Losses and Policy Other
Investment Settlement Acquisition Operating Premiums
Segment Income Expenses Costs Expenses Written
------------------------------- -------------- -------------- -------------- -------------- --------------
Year Ended December 31, 1997:
----------------------------
Insurance Underwriting:
General Insurance Group $197,831 $644,583 $153,419 $113,157 $907,529
Mortgage Insurance Group 35,542 95,530 31,951 44,381 259,068
Title Insurance Group 19,037 18,799 --- 368,085 238,672
Life Insurance Group 13,577 28,706 4,608 22,222 52,772
Reinsurance Losses Recoverable (a) --- --- --- --- ---
-------------- -------------- -------------- -------------- --------------
Total Insurance Underwriting 265,989 787,620 189,980 547,847 1,458,042
Corporate 4,817 --- --- 10,693 ---
-------------- -------------- -------------- -------------- --------------
Consolidated $270,807 $787,620 $189,980 $558,541 $1,458,042
============== ============== ============== ============== ==============
Year Ended December 31, 1996:
----------------------------
Insurance Underwriting:
General Insurance Group $194,338 $626,466 $153,688 $106,067 $865,197
Mortgage Insurance Group 30,401 81,645 31,170 29,641 211,898
Title Insurance Group 18,621 18,413 --- 344,904 220,216
Life Insurance Group 14,165 25,590 6,612 21,285 48,347
Reinsurance Losses Recoverable (a) --- --- --- --- ---
-------------- -------------- -------------- -------------- --------------
Total Insurance Underwriting 257,526 752,115 191,471 501,899 1,345,659
Corporate 3,050 --- --- 16,121 ---
-------------- -------------- -------------- -------------- --------------
Consolidated $260,577 $752,115 $191,471 $518,020 $1,345,659
============== ============== ============== ============== ==============
Year Ended December 31, 1995:
----------------------------
Insurance Underwriting:
General Insurance Group $191,125 $631,708 $131,857 $113,895 $876,179
Mortgage Insurance Group 25,246 57,651 26,401 17,066 168,052
Title Insurance Group 18,038 25,544 --- 296,064 183,351
Life Insurance Group 15,637 25,495 3,669 20,873 45,864
Reinsurance Losses Recoverable (a) --- --- --- --- ---
-------------- -------------- -------------- -------------- --------------
Total Insurance Underwriting 250,047 740,399 161,928 447,899 1,273,447
Corporate 1,862 --- --- 22,133 ---
-------------- -------------- -------------- -------------- --------------
Consolidated $251,910 $740,399 $161,928 $470,033 $1,273,447
============== ============== ============== ============== ==============
Note:(a) Effective January 1, 1993, the Company adopted Financial Accounting
Standard (FAS) No. 113 "Accounting and Reporting for Reinsurance of
Short-Duration and Long-Duration Contracts" which eliminates the reporting
of assets and liabilities relating to reinsured contracts net of
reinsurance ceded balances. Accordingly, reinsured losses and unearned
premiums are to be reported as assets. Assets and liabilities were, as a
result, increased by corresponding amounts of approximately $1.3 billion at
December 31, 1997, $1.3 billion at December 31, 1996 and $1.4 billion at
December 31, 1995. FAS No. 113 did not any effect on the Company's results
of operations.
9
OLD REPUBLIC INTERNATIONAL CORPORATION AND SUBSIDIARIES
SCHEDULE IV - REINSURANCE
For the years ended December 31, 1997, 1996 and 1995
($ in Thousands)
------------------------------------------------------------------------------------------------------------
Column A Column B Column C Column D Column E Column F
--------------------------------- ------------- ------------- ------------- ------------- -----------
Percentage
Ceded Assumed of amount
Gross to other from other Net assumed
amount companies companies amount to net
------------- ------------- ------------- ------------- -----------
Year Ended December 31, 1997:
----------------------------
Life insurance in force $ 8,708,621 $ 3,795,645 $ --- $ 4,912,976 --- %
============= ============= ============= ============= ============
Premium Revenues:
General Insurance Group $ 1,100,635 $ 228,905 $ 34,612 $ 906,342 3.8 %
Mortgage Insurance Group 271,993 997 9 271,005 ---
Title Insurance Group 237,705 140 1,107 238,672 0.5
Life Insurance Group:
Life insurance 31,707 14,514 --- 17,193 ---
Accident and health insurance 49,596 18,444 308 31,460 1.0
------------- ------------- ------------- ------------- -----------
Total Life Insurance Group 81,303 32,958 308 48,653 0.6
------------- ------------- ------------- ------------- -----------
Consolidating adjustments --- (308) (308) --- ---
------------- ------------- ------------- ------------- -----------
Consolidated $ 1,691,638 $ 262,694 $ 35,730 $ 1,464,674 2.4 %
============= ============= ============= ============= ============
Year Ended December 31, 1996:
----------------------------
Life insurance in force $ 6,775,896 $ 2,806,220 $ --- $ 3,969,676 --- %
============= ============= ============= ============= ============
Premium Revenues:
General Insurance Group $ 1,096,877 $ 281,328 $ 52,113 $ 867,662 6.0 %
Mortgage Insurance Group 227,859 1,262 --- 226,597 ---
Title Insurance Group 219,273 169 1,112 220,216 0.5
Life Insurance Group:
Life insurance 28,205 12,988 --- 15,217 ---
Accident and health insurance 50,623 20,126 292 30,789 0.9
------------- ------------- ------------- ------------- -----------
Total Life Insurance Group 78,828 33,114 292 46,006 0.6
------------- ------------- ------------- ------------- -----------
Consolidating adjustments --- (292) (292) --- ---
------------- ------------- ------------- ------------- -----------
Consolidated $ 1,622,838 $ 315,582 $ 53,226 $ 1,360,483 3.9 %
============= ============= ============= ============= ============
Year Ended December 31, 1995:
----------------------------
Life insurance in force $ 7,747,340 $ 3,510,253 $ --- $ 4,237,087 --- %
============= ============= ============= ============= ============
Premium Revenues:
General Insurance Group $ 1,099,727 $ 322,806 $ 74,262 $ 851,182 8.7 %
Mortgage Insurance Group 178,234 2,957 --- 175,277 ---
Title Insurance Group 182,847 315 819 183,351 0.4
Life Insurance Group:
Life insurance 29,290 15,631 --- 13,659 ---
Accident and health insurance 53,283 25,270 308 28,321 1.1
------------- ------------- ------------- ------------- -----------
Total Life Insurance Group 82,573 40,901 308 41,980 0.7
------------- ------------- ------------- ------------- -----------
Consolidating adjustments --- (308) (308) --- ---
------------- ------------- ------------- ------------- -----------
Consolidated $ 1,543,383 $ 366,673 $ 75,081 $ 1,251,792 6.0 %
============= ============= ============= ============= ============
10
OLD REPUBLIC INTERNATIONAL CORPORATION AND SUBSIDIARIES
SCHEDULE VI - SUPPLEMENTAL INFORMATION CONCERNING PROPERTY-CASUALTY INSURANCE OPERATIONS
For the years ended December 31, 1997, 1996 and 1995
($ in Thousands)
- -------------------------------------------------------------------------------------------------------------------------------
Column A Column B Column C Column D Column E Column F Column G
---------------------------- ------------- ------------- ------------- ------------- ------------- -------------
Reserves for
Deferred Unpaid Claims Discount,
Policy and Claim If Any, Net
Acquisition Adjustment Deducted in Unearned Earned Investment
Affiliation With Registrant Costs Expenses Column C Premiums Premiums Income
- ----------------------------------- ------------- ------------- ------------- ------------- ------------- -------------
Year Ended December 31, 1997:
- -----------------------------------
(a) Consolidated property-casualty
entities (b) $56,489 $1,919,323 $167,710 $289,858 $906,342 $197,831
(b) Unconsolidated property-casualty
subsidiaries (a)
(c) Proportionate share of registrant
and its subsidiaries' 50%-or-less
owned property-casualty equity
investees (a)
------------- ------------- ------------- ------------- ------------- -------------
$56,489 $1,919,323 $167,710 $289,858 $906,342 $197,831
============= ============= ============= ============= ============= =============
Year Ended December 31, 1996:
- -----------------------------------
(a) Consolidated property-casualty
entities (b) $54,263 $1,900,624 $163,180 $289,041 $867,662 $194,338
(b) Unconsolidated property-casualty
subsidiaries (a)
(c) Proportionate share of registrant
and its subsidiaries' 50%-or-less
owned property-casualty equity
investees (a)
------------- ------------- ------------- ------------- ------------- -------------
$54,263 $1,900,624 $163,180 $289,041 $867,662 $194,338
============= ============= ============= ============= ============= =============
Year Ended December 31, 1995:
- -----------------------------------
(a) Consolidated property-casualty
entities (b) $53,046 $1,890,409 $162,819 $291,545 $851,182 $191,125
(b) Unconsolidated property-casualty
subsidiaries (a)
(c) Proportionate share of registrant
and its subsidiaries' 50%-or-less
owned property-casualty equity
investees (a)
------------- ------------- ------------- ------------- ------------- -------------
$53,046 $1,890,409 $162,819 $291,545 $851,182 $191,125
============= ============= ============= ============= ============= =============
Note: (a) These amounts are immaterial and have, therefore, been omitted from
this schedule.
(b) See note (a) to Schedule III.
OLD REPUBLIC INTERNATIONAL CORPORATION AND SUBSIDIARIES
SCHEDULE VI - SUPPLEMENTAL INFORMATION CONCERNING PROPERTY-CASUALTY INSURANCE OPERATIONS
For the years ended December 31, 1997, 1996 and 1995
($ in Thousands)
- --------------------------------------------------------------------------------------------------------------
Column A Column H Column I Column J Column K
---------------------------- ------------------------ ------------- ------------- -------------
Claims and Claim
Adjustment Expenses Amortization Paid
Incurred Related to of Deferred Claims
------------------------ Policy and Claim
Current Prior Acquisition Adjustment Premiums
Affiliation With Registrant Year Years Costs Expenses Written
- ----------------------------------- ----------- ----------- ------------- ------------- -------------
Year Ended December 31, 1997:
- ----------------------------
(a) Consolidated property-casualty
entities (b) $750,355 ($105,495) $153,419 $626,168 $907,529
(b) Unconsolidated property-casualty
subsidiaries (a)
(c) Proportionate share of registrant
and its subsidiaries' 50%-or-less
owned property-casualty equity
investees (a)
------------- ----------- ------------- ------------- -------------
$750,355 ($105,495) $153,419 $626,168 $907,529
============= ============ ============= ============= =============
Year Ended December 31, 1996:
- ----------------------------
(a) Consolidated property-casualty
entities (b) $700,847 ($74,376) $153,688 $616,255 $865,197
(b) Unconsolidated property-casualty
subsidiaries (a)
(c) Proportionate share of registrant
and its subsidiaries' 50%-or-less
owned property-casualty equity
investees (a)
------------- ------------ ------------ ------------- -------------
$700,847 ($74,376) $153,688 $616,255 $865,197
============= ============ ============ ============= =============
Year Ended December 31, 1995:
- ----------------------------
(a) Consolidated property-casualty
entities (b) $724,396 ($92,692) $131,857 $565,053 $876,179
(b) Unconsolidated property-casualty
subsidiaries (a)
(c) Proportionate share of registrant
and its subsidiaries' 50%-or-less
owned property-casualty equity
investees (a)
------------- ------------ ------------ ------------- -------------
$724,396 ($92,692) $131,857 $565,053 $876,179
============= ============ ============ ============= =============
Note: (a) These amounts are immaterial and have, therefore, been omitted from
this schedule.
(b) See note (a) to Schedule III.
11
Exhibit 28 - Consolidated Schedule P
--------------------------------------------------
Schedule P - Part 3 OLD REPUBLIC INTERNATIONAL CORPORATION CONSOLIDATED - GRAND TOTAL - ($ in thousands) (a)
Premiums
were earned Allocated Unallocated Loss & Loss
& Losses Premiums Loss Salvage Loss Expense Loss Expense Expense
incurred Earned Payments Received Payments Ratio Payments Ratio Payments Ratio
- ----------- ------------ ----------- ----------- ------------- --------- ------------- --------- ----------- ---------
Prior $3,606,478 $2,123,882 $119,431 $268,400 12.64% $79,763 3.76% $2,472,045 68.54%
1988 615,020 310,433 20,007 33,060 10.65% 14,142 4.56% 357,635 58.15%
1989 617,755 344,910 25,001 39,685 11.51% 15,148 4.39% 399,743 64.71%
1990 679,000 402,356 18,438 47,602 11.83% 16,982 4.22% 466,940 68.77%
1991 740,239 393,115 17,080 43,572 11.08% 17,608 4.48% 454,295 61.37%
1992 815,871 402,473 18,242 44,469 11.05% 20,360 5.06% 467,302 57.28%
1993 875,847 442,692 18,202 54,705 12.36% 25,271 5.71% 522,668 59.68%
1994 867,630 427,006 18,937 51,941 12.16% 27,158 6.36% 506,105 58.33%
1995 850,211 359,165 21,167 40,725 11.34% 29,762 8.29% 429,652 50.53%
1996 846,760 338,874 21,745 32,580 9.61% 32,384 9.56% 403,838 47.69%
1997 879,848 244,351 15,856 19,326 7.91% 25,610 10.48% 289,287 32.88%
------------ ----------- ----------- ------------- --------- ------------- --------- ----------- ---------
Totals $11,394,659 $5,789,257 $314,106 $676,065 11.68% $304,188 5.25% $6,769,510 59.41%
============ =========== =========== ============= ========= ============= ========= =========== =========
(a) Prepared in accordance with the 1997 guidelines set by the NAIC.
Exhibit 28 - Consolidated Schedule P
--------------------------------------------------
Schedule P - Part 3 OLD REPUBLIC INTERNATIONAL CORPORATION CONSOLIDATED - GRAND TOTAL - ($ in thousands) (a)
Premiums Total Loss
were earned Unpaid & Loss
& Losses # of Claims Unpaid Loss Expense 1997
incurred Outstanding Losses Expense Incurred Ratio
- ----------- ------------ ----------- ----------- ----------- -----------
Prior XXX $390,455 $36,385 $2,898,885 80.38%
1988 XXX 55,759 4,646 418,040 67.97%
1989 XXX 60,331 5,784 465,858 75.41%
1990 XXX 63,397 5,881 536,218 78.97%
1991 XXX 67,519 7,304 529,118 71.48%
1992 XXX 69,025 13,793 550,120 67.43%
1993 XXX 79,321 11,984 613,973 70.10%
1994 XXX 95,158 16,746 618,009 71.23%
1995 XXX 169,644 28,460 627,756 73.84%
1996 XXX 215,682 45,254 664,774 78.51%
1997 XXX 378,644 92,389 760,320 86.41%
------------- ----------- ----------- ----------- -----------
Totals XXX $1,644,935 $268,626 $8,683,071 76.20%
------------- ----------- ----------- ----------- -----------
(a) Prepared in accordance with the 1997 guidelines set by the NAIC.