ORI - Earnings call transcript Q3 2017 | Old Republic International Corporation

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Operator

Good day, and welcome to the Old Republic International Third Quarter 2017 Earnings Conference Call. [Operator Instructions]. I would like to remind everyone, this conference is being recorded. And I would now like to turn the conference over to Marilynn Meek with MWW Group. Please go ahead.

Marilynn Meek

Derek. you, Thank and Old everyone, XXXX for us joining Good conference thank call the Republic quarter to for afternoon, you discuss results. third release statistical we of otherwise you have morning, a during and and/or press posted the to call. This have seen a which supplement, distributed separate access we assume the copy at available are which documents Republic's website, is www.oldrepublic.com. Both Old dated Please press release the as discussed be advised in that this statistical call October supplement may XXXX. involve forward-looking statements, XX, and latest company's filings. can be found associated Risks these the with statements in SEC afternoon's Old and by for CEO persons This will Zucaro, Al led planned conference be Republic call Chairman and this as several of meeting. Corporation; International other At turn the this Zucaro. to would Al time, like call over I to sir. go Please ahead,

Aldo Zucaro

Marilynn. Thank you, Okay.

also And evening. bid post-earnings from significant or previously we good had good the on afternoon conference we twice-a-year doing quarter's our call stand or of Today, obviously you latest so schedule. this listening is us. because And charges depending norm this for we results which we're announced, where morning good obviously to everyone makes adopted call, deviate decided the out from located to this

does, financial call. President, Smiddy, And who of For more in we of Scott Title Karl segment. just we're Craig does the as cover we've who the on assembled Rande usually an And so this Insurance elements to the addition office, other he'll executives who's Scott discussion the Republic's picture. important he our comment, calling and to business as part CFO, our cover in have Insurance Yeager, will our is in visit, to from senior CEO usually Old Rager, will fill and myself, point. General on said, away Mueller, our in of important business, the place Craig that take with X Marilynn And he segment this.

release that quarter post morning's well financial indicated, over morning this access we go Old earnings as we this that the just Republic been put assuming as release, each has we as to with everyone, be website. has out the as we'll the So that supplement

in as the for each parts at The of picture scheme expected we of much we the and parts looking So in the period, had, as relates pretax a things. claim we think, to of which And confluence, normal of significantly we've written of in expense results. known news course, changes just final bore operated we've of several our release the as segment. in difference, Insurance that of this X exposures of as currently, $XXX the just pretty quantification the took we've General might quarter all for and business, apply charge run-off a year's a nutshell, number, claim to of events seen, estimates latest to and year-to-date say, charge those said, the or a was $XXX you and and to the quarter our remainder ended. of Of you've certain RFIG million $XX million million business

this we'll visit General picture. turn business. So and therefore, much Go Insurance more you we'll to And now Scott if little as a to with the ahead. who embroider color, that without will, background, ado, our discuss Rager, more will add a here

Scott Rager

the and experienced in net most the increased XXXX. in Strong quarter renewal in the year-to-date up on where the minimally ratios same Workers' compensation increases lines remained difficult reflected year-over-year for in writings retention as as business. continue Well, have increases of earn continue Insurance release increasingly especially General were that writings commercial auto, to more rate our down achieve but group of X.X% We third quarter, periods of indicates, coverage, increases year-to-date, X.X% through. become the of line. premiums rate to to in earned compared

board, the across much operation pretty business segment. new in trucking in and most our notably our announced in underwriting newest producing XXXX are We

the period. level claim given percentage the our As large and third and stable particularly our holding year-to-date compares always and and insurance the as might stage, expectation. Insurance and added last market, up up we composite We the very past composite XXX.X% in and last good year. in quarter which think posted that small. losses, to quarter functioning third X our year more perception But not the are largely This that quarter. competitive the that's recent so, players, the quarter the long-term expense result X.X% driven we're these ticked for capital a to quarter of compared is The the average the months ratio are for years' point underwriting at for we second of the own points operations for ratio General contrasted of rests case, ratios than compared at to ratios versus point ratio group's year. to Year-to-date, following reasonably note X.X% At X.X XX.X% was group's to in is all competition. third excess all overall same with this of the and among quarter year. hurricane-related XX.X%. percentage that X.X XX is basic the Year-to-date, The of line XXX.X% by this last impact to this think X XX.X% composite same and ratio a

year. to increase commercial hurricane-related, claim compared the a the little shown XX.X% XX.X% edged likely and down ratios posted to our this liability in quarter year-to-date is the as vein, automobile bit the this supplement last quarter-to-quarter financial the last ratio XX.X% at ratio both year-over-year, year-to-date. most As for on a similar we've to The XX.X% due year claims, website, year. visible damage In on is came compared

course, down low historically we've the levels to in to ratio We of coverage our we've offset cost remains objective, in years. continue rate claim further that recent the And our obtained ratios in the mid-XXs. trends commercial seen increases experienced the to will believe loss bring automobile experienced more to

Year-to-date, from claim -- workers' quarter quarter second time, third XXXX. XX.X%. same XX.X% excuse of This stabilize The Over of about within ratio but this to me, range we believe the last was rose of from quarters to up compared annually. XX.X% XX.X% is compensation at it down should X year, to in XX.X%. the quarter ratio XX%

Our general liability commercial experience lower this can compensation workers' the volatility for in underwriting results than or auto, writings are as much we coverage. such, a and greater

in compared As than in on XX% ratio claim reflect the performed hurricane-related Other financial impact year-to-date quarter the protection XXXX. Likewise, results the a a within coverage reflect guaranteed last to XX.X% quarter lower in aviation of the claim and supplement, results XX.X% shown compared expectations. year. our on latest ratio the our to books, of asset XX.X% third remaining

occasions, on a in all we believe experienced the a small ratios recent reported of the any of have judgments post to long-term claim stability inclusive that but reserve in we years we development continue of adverse claim greater are favorable to or level the As should base. Unlike XXXX, restore prior claim XXXX, development. exercised unfavorable in reserve

summarize, to remain of focused our underwriting discipline. on So units all operating our

realistically excuse Title Yeager, business. discussion entirety XX% we believe Insurance mix of remains achievable that leads our Rande the a General our objective. insurance over turn composite the for a I'll me, business, On note, of and to current rolling who our business -- that Given fast

Rande Yeager

Old Title Republic as talk about group. to And the I'm always, Scott. Thanks, happy

of news group recognition quarter quarter's pretax last for million current quarter. million of in of As compared the the we've favorable years. policy development an increase It $XX.X shown for reported year's is the to results in claims income the in $XX.X release, third Included was the XX%. continuing prior

by up affected were the we're results by claims the we developments, XX.X%. months, out X in as And years' the favorable prior For similarly, point release.

both Florida. an year's to quarter. to X.X% The X the Houston environment number revenue continued weeks weather difficult to market increase basically and quarter of profits more in over the is on enabled was and Florida. most and the no in in purchases refinance past production ongoing quarters. stopped the and mortgage that doubt, for with third hurricanes robust a extent impacted revenues prior It's were, really week The put than and the more comparative The than premium the quarter Texas but favorable volume effect, and there several by fee business latest has rate up compared attributable for

back those natural of these recover relatively and strength expect to operations impact Other was good. and business gradually get full in to catastrophes, the to We disasters the fourth than quarter.

on Our our really and direct agency the premiums impact premiums fees immediate while were direct lagged up as X.X%, operation. about stronger have and an X.X% about hurricanes

of finally, and and continue share remains stable in this of XXXX. in national the the will turn discussion prospects of period near-term we the operating both about year the ORI's think optimistic with compares We're of at to record of market that note, well at XXXX. half at a the this over this of business pace juncture, future profits Al. the family. success revenues first will I the same rest Our the XX.X% you, And to And XXXX for as XX.X% as back core

Aldo Zucaro

Okay.

business. talk run-off So let RFIG bit about the me a

consider Title to just to model decent the exception first way the for all this by banking mortgage planning third force But that tread this figure very -- stakeholders this run-off year, the We for discussion. As MI and much operating out the And think noted mortgage that housing then, additional continue to to certain for very in we'll release this the business we're segment appropriate franchise mode. to the quarter shows, along very that this course most now much with provision for the operating drop in a latest and key XXXX outcome best until observed or moved thereabouts, off business, the be of this currently policies out we inventory viable our positively Rande a is when we in think. as since of most mortgage we've continues business the fairly for insurance the we guaranty that claim between XXXX enacting a the run market, long-term of of business. run-off we in likely the anticipate valuable and portion

mortgage million As book and to years. also represents say recently have cost to small to probable claim quarter's determinable of as best hark and final ago, charge, Great to at current once that our Recession a costs in that soon final release, claims to it were pertaining the $XX exposures an bring we and let number it costs me The to insurance, that of that established third a we've which the estimates that allocated commentary was on certain previously, relatively back end years written and settled litigation

charge, thereabout. or I XXXX assume the normal mode run-off is say, we this business as with very MI think going a to that So until,

remaining part And and anticipated. in And $XXX the operating in that we for as of most as a the had burdens posting And and credit we exacerbated to consumer claim that of a costs of in you results recently claim amounts additional greatly have very been call cost lesser you portion the the covers a of the by search exposures or that the posted might also a litigation obviously course, CCI given reserves was, course, has to decade-long of what its small settled indemnity platform. in previously well has Now run-off of that, in as now been in business. mode, release. the relatively excess to that of in attributable spent as say The provision a much current that book, volatile million placed plod of run-off the finality the the it, perform truly volatility very the the update large amount news litigation size continues near we net of litigation in have. the estimates this placed critically, see of latest quarter are

of borrow when look play theater, this to recognition RFIG the title dark a Day's a we Journey portion of in into the So from final at Night. numerical Long that think we of finality CCI ends the analysis, business, the a

their the of bound to both see lot much looking business as we're more run volatility, forward, stability, course. of think these we less RFIG that portions a So

comments soundness continued the enterprise. with Karl turn So Mueller our this, for on I'll to of

Karl Mueller

Okay.

high-quality up As balance, composition by September X additive On usual, balance key securities, par XXXX to few portfolio focus At on I'll first investment $XXX consolidated blue-chip the positive stocks. Old utilities. comments unchanged year-end which last Old strength XX remaining the less September as earlier XXXX. than remain companies flows and months the X Republic's balances of months. earlier year-to-date On balance asset overall addition equity grew elements dividend-yielding The securities diversified net favorable positive environment. increase as with that's our million which X.X%, prior were cash maturity developed operating pretty increased a to and unrealized primarily see the monitor total pool consistent to periods. an Republic during equity its on XX% up this the and investment by million as year. of reserves of cash third The can remains Pages basis internally year, of favorable of cost financial by that's reserve $XXX A securities XX% invested consists basis, a of investment basis, grew experienced claims make in amplified the supplement of my a remains in portfolio equity We to development to year respect the levels. approximately development XX well the retains reported was years. its during within strategy much is Equity to effect the largely periods total situation. I'd ratios. and and sheet manage characteristics months $XXX with risk in approximately With portfolio's which a of the cash maturity million, of equity the focused and X financial representing to on portfolio of from portfolio, the X the claim flows mostly of individual on well yield on year's The sheet income tolerance basis, risk investments and consolidated short-term continually by is say slightly last portfolio. first This comparison the This investment a a stable for quality allocation you attributable Claim quarter this portfolio unfavorable average a and of appreciation. year and or on Overall, Fixed that on this the $XXX as first morning's X, as relatively comprised with rating composition market year. year-to-date fixed and the million, maturity the of on X shows, own. year rising this

unfavorable trucking insurance compensation the other and Insurance development XXXX mentioned both remains continued year-to-date a general General As in auto, liability earlier, in Scott words, the modest for our commercial basis, periods. group development to experience long-haul business; concentrated On workers' the coverages.

acknowledge optimistic that will prior remain years. backside of We trends group favorable moderate, a development but Great the somewhat continue unfavorable of of quarterly that a to to do results reserves, volatile again on may be development year recognized development Title due we shorter-term the loss Recession primarily on favorable claim the The basis. continuation The

to measures ratio title XXXX a remains Paid the obligations draw policyholders. its strong measure relationship for We key a years. from titled ability of X this also in This a the XX paid this the average and of your financial of supplement to X is indication the to measure Reserves at attention clear to totals line Losses ratio Ratio. unchanged of is to Page X.X:X a claim carried segment's ratio The reserves position. -- ratio September reserve year-end insurer's past This is meet to the

both X seen reserves virtually growth financial of XXXX. also extended in claim value the capitalization at XXXX $XX.XX September release, or As finally, the and at the Republic's about book developments are in since RFIG summarized on Page in -- during share beginning portion release. main increased in Old those the the ratios from claim insurance favorable in mortgage per the the this on by supplement the year. We've table of disclosed value business X.X% book run-off of supplement XX morning's the reported on unchanged the end Page again shown the of of And elements X page the periods.

are those comments, back Al. my to it and turn So I'll

Aldo Zucaro

Okay.

remains minutes, on we're and shape and think we our that discipline, So underwriting we've System-wide, services remains focus unaltered. as last tiptop few the in in said our related core here.

within fees $XXX shows, well X premiums XX% range claims continues ratio of eliminate, the XX% million of release good the business in course, our of Page composite all to As and of and of reasonably the hit the We generally if of expenses consolidated we and we past overall is of this in totality in economic is quarter. level operating. cycles, the long-term took which the the this underwriting our think context the that

just small totality also is the We so of in alluded especially the think to it's flows that off. operating Karl our cash of business showing that context positive

As the the that's almost the cash that this again $XXX up a operating XX.X%, X And was months in run-off right, see of to the and year. points just our good can both as ex first as earnings as Page of shows payment very as holding million upstream our about Karl the think course, this you flow one in operating company business release shareholders' RFIG to on on to X dividends funds which both well of investable dividends well honor costs. the hand, for benefits the the liquidity to of said, management debt-carrying as ability we our to as

the also, faster economy for as And services, consolidated the focused, than possible that indicated, system. think very consolidated business think its continue parts of cash that through we slow is economy, to the support industry more our a the believe of as as any at therefore, very we're a mode grow costs North enable of important operating capital that large. in sectors, well can American clip the some Overall, future. us growth we, subsidiaries in and likely which the in remain currently in to nonregulated our at have take business Additionally, should foreseeable to when of we our have commitments the standpoints needs capitalization liquidity both we or so we care ample various we in

success underwriting The of the to a when issues Karl in in done, So playing shape this, areas level course, to decade. our field said with had and to manage we're in we've is With of enables comers as uninhibited with and business remnants related strong consistently our enable the think to sheet. services very balance the compete forward that, we're strength, of mentioned, expertise. very greater Recession will good business drive all Great a again, the all all during on able And we by and conclusion, deal continue last to going and a of us on to us

the to parted So great of looking as once produce good results the I ahead, our like all -- clouds, Republic. for And again our have to of stay, over interest we're all Old very key stakeholders. going of for

So turn XX meeting, to before that it will the anyone questions this as minutes. note, that on at was any I have. indicated of may beginning There's now

Operator

And Instructions]. Greg question Peters your [Operator first Raymond comes with James. from

Charles Peters

hog don't of then couple a with spotlight, I'll if I -- Just required. questions. Q&A requeue the And some so follow-ups

year-to-date some it on all units? Is was business, which third Scott, in is General XX% points. the up struck illustrated of it commercial was Page X quarter On on I the some was pricing the your is could up looks almost Insurance color I by supplement. in auto in provide and it almost what's the like acceleration going the as you earned particularly if It please. premium, from growth price, an a on And perspectives, full Provide X additional result, wondering there.

Scott Rager

new and in growth the at organic business general, weighting customers say, would we there through. but then have it's probably within that pricing, Greg, is present I half

Charles Peters

Or something year-to-date going for So of the that sort that next business, more run it normalized about the gradually down to rate outlook Scott, quarters? is -- is slow you to it's digit? when several is what mid-single do anticipate X% the I for the think

Scott Rager

mid-single-digit you've as eking couple the the you for up, quarters, but would been indicated. back a trending as last anticipate It's in has range. somewhat been would foreseeable know, I that of and that to future, down But get it up, it over slow norm

Aldo Zucaro

last that of of some of or year happening, some And that's of so, getting thing have always, for degree in share another out some competitors and greater from market. know Greg, And as in the terms are to is we Scott, that. benefited the the you market and

Scott Rager

me fire accumulated people they, as don't at going to engine Yes, business. -- new we you shall refine the to listen have indicated, or exit look to When by? want -- we you to wait, they I say, market so we our have

Charles Peters

XX be great. If that you to seconds, wait want for would

Scott Rager

don't So engines, fire we ride right?

Aldo Zucaro

that coming They're are just firefighters just back the lunch. from

Charles Peters

It be seems afternoon in occurrence your a to regular conference calls.

Scott Rager

It definitely does.

You were we? that about asking where So -- if were composition.

totally shall in over want auto a whether to competitors that serve, situations be the to And the get X more size know. general industry of leave last as marketplace I and will, some would the the see might been coverage happening by see And happens, Commercial be. say, last space, type, last better in which -- Sometimes in X opportunities. secondly, been refine by the the or markets client's then years. months. it the geographically say, has will competing they this when not you the case people that's define we whatever or or over where through we the we And

Charles Peters

I development. just it Or expected clarity, to been provide and this that, be I gradually so individual for know you, surprising, addressed just some your prior comments. up would additional this behind I that would commented the number the helpful. going Okay. But Karl of that's be actuary follow diminished. just kind of color? year reserve have yet, you in this cases? the direction. Or that And cases, already some I and you Is Can both this is of year, And opposite seems opinion it IBNR? I'd it. it's color an have on some in would thought Scott, know

Karl Mueller

factors is setting information more think say existing case we're to that it significant, of contemplated to us It's place. nip is was not quarter-to-quarter, And magnitude year would And cases. culmination continue from prior the have than particularly on that commentary of And but it's of it trying a the was not stability seeing lot we're in lot and seeing of I I new just so is claims not when my first these when the volatility settling now what a expected. claims nagging we a Well, perhaps a condition. any right that newly in from in some reserves reported development.

Scott Rager

to you, I question, that, It's think just has Greg, we're alluded part or right, it of to cases Karl? unallocated reserves do just And and expenses. being in that, IBNR, add drive loss also to there your expense the it that is that reactive or with of quarter-to-quarter. not not formula would I but -- allocated loss adjustment adjustment

plot, to of here unfavorable were kind or haven't but reserve you pattern quarter-to-quarter. ins see they quarterly outs plot if to for we you around If done would redundancy around of development, and which any bounce a that while, without you the were

Sometimes, quarter. Other an of or see. an we'll fourth you'll of now the have more times, effect have more in effect we as midyear at

that very of conscious think more to developing of and its by that adding but we're bobs is better, favorable what's to darn the to the it. And bit satisfied element we'll a little answer development. -- to reserving is development long-winded happening negative business. of of thing way opposed historical be We color That's a of of as to an pattern turns thing this it remember So case and never until weaves. getting

Charles Peters

loss considerably. hit in paid for But it's that to my supplement it head. the nail is on business. reserves on I to get up think to obligatory I you ratio the Rande going last was And question noticing I gone quite in the years, several the the appreciated. up. really And wanted Karl, Title

Rande, development the So year. this in quarter favorable third

a highs. looks Your period favorable historical going we're reserve anticipate looking it to development prior be see trend reserves what that to paid all-time of losses conceivable ahead? to at to Is

Rande Yeager

like certainly to discussed practices I've just seems overall the doing atmosphere so. being technology on things commented than risk And the before, business, less. lending be but more -- the within industry, detection, think It I'm We advances, just it environment trend we've fraud originations, for think mortgage specifically now. those, and a I

were we are are different ago where and where So XX years we just today worlds. completely

guesses, guess, is Greg, are are guesses, that this going So my but best and they to continue. educated

Charles Peters

in looks third the How business it quarter? strong. was pretty Well, the of the Yes. side commercial

Rande Yeager

itself us. company it's The the and affected really market is market I think a acceptance I it's matter I and off, in but little to as for of get And we that or flat all better hasn't player, growing knock things of bit it a a well it's the worked mean, major better out time, just better. on continual. wood us. mean, seem our and and

Charles Peters

say, litigation around your cases. with the the Yes, box is -- cost yes, America, of correct? some the I'm the be, just perceived seem new that smaller I same for because a release, trying some -- the since put you've the then questions charges business, the Al, to have your cost, outstanding around camp, And and Bank press this. preview certainly introduced But clarify, release in $XXX run-off this of million in yes. investors to that to settlement includes and also to

Aldo Zucaro

cases public But the was tried that past. blaming it we discussion arms certainly settled. all, cannot situation a on big kind remaining poor really be surprised and of we again this our we around, of have here we've got the quarter very think conditions has case say been as you It's to gone can have sure of put that, think we the -- of and I'm can a residual We that that would that say if we we've understand. our poor arms speak issues, is year or to record. Yes, before, categorically now. as What matter megillah the And we small of terms in right, any our -- and a it's the I there. sins

I think it's over.

Charles Peters

thanks that up. clearing well, for -- Yes, that's

on portion going that settled we As a ratio all, just several ratio. years, the the a if an the litigation most charges? expense. this, follow-on apples-to-oranges year, of we're and combination closed, the that the mean basis, because of seems But that's RFIG over absence and claim expense and expense in included, about last the Maybe or results to an through a every of has these it's like is the flowed think of that, the ratio apples-to-apples results see improvement it as not out that claim expense to basis or been of considering does maybe

Aldo Zucaro

the we've fee continues and up $XXX respect lending that's RFIG play litigation really respect as will so as both that CCI a in that say, earned Obviously, a -- we slope. asset chunk terrible unallocated to in a mortgage for we by net very premium and are an to well going in income is just into been the the going dense A them think business, to expense, know of out lot be brought so adjustment cases. mortgage investment other what line, settlement. in downturn got the should particularly the pay million trick. standpoint it something nonetheless, way, standpoint. our and A leg. guaranty indemnity downward the base, forth to on loss out. top We work of think And fashion. that that dense in to be happens and that, well you with makes the couple Well, we've from it's we positive though the that that way portion. cases accompanied and be is should of cost line, seeing is settled you downturn the on their to the industry, normal costs, a nicely, unless therefore, of CCI with culmination I'm as And the a trying again, case settled off That's it nuisance legal being line a the investment on loaded I mostly thing with to claims portion, case. to gradual book, are income that invested assume, that that housing But very itself out a big

relationships, should Okay? terminate that have the of eliminated, don't cause around been neck top little the the significant a can just -- business in the accelerates we think of But right tiny such as business, then any And It in it surprise effect line. we and downturn knack as business. the that as the now claims long to you that have, premium settle expect remove on RFIG arbitros RFIG, you you or as line. we and the that's impact the the anymore. see that's that

Charles Peters

deviating doing I you your conference and Yes. normal a practice color, Al. appreciate That's excellent call. really from

Operator

[Operator Instructions].

comes question Ransom Dowling Gary next Our & Partners. with from

Gary Ransom

on old also this involved Bank whether them still bickering particularly a you with all I question these payment had the were America. claims a that for want I to settlement understand credit just charges, to in still claims Or you over? in and the that may or ensuring the still underwritten then mortgages by future? that future? -- to have consumer was does of it include them settle you Are

Aldo Zucaro

with has and your dispute Bank the in Well, the as one, points -- we And can be the question America-Countrywide with it that of with of your America has say, disclosed that Bank categorically to say legal that cannot our of settled. we've agreement tried of because to we settlement. us. been go And those terms have terms

similar and quarter balance this of need have the the judgment, the And accept end So it that and just logged fact all amounts third we there. the sheet litigation unfortunately, need with best with to of we resolve income of -- that to in you now monies that September leave on statement we have been we through dealing year. think sufficient the to to our issues at that are,

Gary Ransom

ways the it residual out me to of is settle Let out useful in way. It ask a with America-Countrywide, smaller did what is there? -- is litigation terms figuring Bank just that's different that you of

Aldo Zucaro

Well, put guaranty CCI disputes or disputes we up set claimants of mortgage and in have litigations or to I all we both any our as types commercial with those of have and all business. away funds, said, sufficient

Gary Ransom

it leave there. I'll Yes, Okay.

subjects did the a you or they changing me minute. the Just in The that I other physical some ratios, came, entirely -- where wasn't primarily? which it from because look it don't to lines I was of I catastrophes the quarter, damage having for property -- exposure. exposures, property whether clear when lot on of come But trucks as loss think what a at

Aldo Zucaro

You're collateral do types property we much correct, why but And exposures, don't we have Scott, of don't you... have exposures.

Scott Rager

The we financial to is in coverage. a something with, sense sticks not extent GAP from to indemnity emanated the property deal as of referred losses Yes, large product a that no.

Gary Ransom

that. understand I Okay,

Scott Rager

there there pretty loss the know, a for the cargo all an spread to other no And value and was an across you us as the much some addition And is though entities, trailers, the automobile concentration right. less was trucks, that coverages and a than hull damage residual loss caused and like. in All of But of -- protects issue. equipment was than to and vehicle one value marine damage financed to and event there's aircraft in the or the value. inland losses, that, those

Gary Ransom

came And the Harvey like then, that was mostly there. It it flooding sounds with from

Aldo Zucaro

there. Yes, mostly from

Scott Rager

That's right.

Aldo Zucaro

respect so categorize in cargo did the stuff, equipment the got those the bit it's and Florida. all way move indemnity should someplace of making would estimate. an But forth lift I accumulation on with in of just type nits type and A think Scott trucks that just been to spoke of That's little We time, run-of-the-mill million. we've again, not $XX that a the conservative to loss on have it and on. to is think and put gnats nonfinancial waylaid that thing, been that aggregating so that I

where that's another posterior. again, in the of butt to remnants us So the expect the that don't situation kick or we

Gary Ransom

primarily? The I that Yes. up more to a years recent bit is little also from just the accident want development, adverse reserve follow on coming question.

Karl Mueller

of there's necessarily multitude over know that would spread don't I say it's concentration. I years. a a

Aldo Zucaro

it's particularly a fine, XXXX was it us, Karl, XXXX, York, working chiller. are But but cetera. we primarily the be The and of New out the 'XX, in recession certain years Those now to that 'XX, 'XX, can I think as 'XX, et ones give high still seem years, prior they just years, say, say 'XX, that right, post-recession right? level

Gary Ransom

something that somehow more One exposure. about back a loss ago to few sensitive components they're were policies your question. or maybe the workers' restructuring last years comp you talking have they self-insurance This so about goes business to

just haven't You this where stood still talked about effort point? I that wondered for that's that or an a undertaking while. if at you're But

Aldo Zucaro

It now self-insured tough-to-roll up be when XX%. more continue we the move other I shares whether whatever it's is, favorable but obviously, to and we yes, -- every than you XX%, degree, captives, as about it the day, sharing dividend, over And when be time when XX see insured case time. It's strongly we believe over it to slowly, -- in tend we over Maybe retro, we've they're points may and the up have book. be, And the quarter, when product. rate-sensitive like came continue an it's those Besides, some moving have here on but first felt that risk, a to tend by it to was looking a and about a results to still move book. I XX recall, more. just And gone [indiscernible], more. do it was we in been or Chicago, like we years, [indiscernible] that

Gary Ransom

Okay.

that at, we but in should So improvement is even comp that, already? that good. with workers' over -- of help sounds though maybe still, to of some it that attributable looking some time, ratios And were some seeing the out we're at loss the least

Aldo Zucaro

ground-up that with to it a exposure takes just business more book correct. Scott about said, with into years insurers. the oriented to gets turn as for from book, that's it of finish on X the type a insurance partnership start company comp, about size It to particularly primarily exposure of exposure, a where type takes the around to of -- from one accentuated That's

one business, rest years the that which type is like bit -- And just we was are of I a million more We maybe portion put management of have on to had than we now, of was something risk book no of of XX%, X book. ago, $XXX ground-up book. X or And XX%, little color, ground-up. XX% guess, XX%, stuff and the that

Scott Rager

So been of turnaround a it's book. the allocation total [indiscernible]

Aldo Zucaro

results again, But or comp. point these place. to year, a next XXXX it I to getting XXXX, seeing where not it's changes the for finally takes starts we're following take improved in time much in the year, quarter more And -- think

in and been But step years. X right? that. you X a line, we as Now industry, going our both get back. and you of claims of know, throw fix, well on that keep arms challenge else around a the case to has And to of something company a typically, and for is has it, as ultimately, the The forward not And slogging as forward. an difficult as comp, is really been number medical portion cold away taking once a trying water we're Because truth then comp happens. steps

Operator

call. conference have time you. Zucaro this Al I'd like back the any Instructions]. if Thank today's turn or [Operator conclude does And that to closing at you additional Mr. to over remarks.

Aldo Zucaro

we we think look interest, and the January fourth of I I forward quarter and appreciate as And -- say, day, we we've forward results. Peters guess, that XXXX when year I piece of publish the raised We you to it's and again. end Ransom. next in No, full our at visit. all said that the were visiting questions look with by to our appreciate the for and Gary Greg we

bid you and meantime, a have afternoon, So in good the all day, farewell. you good

Operator

does you your that conclude thank participation. today's again, for once And We call.

may You now disconnect.

Old Republic International (ORI) 26 Oct 172017 Q3 Earnings call transcript