ORI - Earnings call transcript Q2 2020 | Old Republic International Corporation

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Operator

Good day, and welcome to the Old Republic International Second Quarter 2020 Earnings Conference Call. I would like to remind everyone that 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

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

Craig Smiddy

Republic's we XXXX me the Group. you, call. With Karl conference have President second Insurance quarter and afternoon, Marilynn. of to Thank Good Carolyn today, earnings ORI's everyone, Mueller, CFO; and Title Monroe, our Old welcome

wishes all our Let challenges you, we as pandemic. COVID-XX best us your reiterate coworkers, to first face to all the friends, of continued related the families,

that uninterrupted mentioned our agents, in As to our services brokers, have to of associates release, associates Republic, remote remotely, some our delivered customers, efforts and than while returning continue work ensuring the extremely work of are well. X,XXX The begun more to majority offices. gone our in Old all our and we have

we COVID-XX, equity very results of the shareholder's with emanating first end we this pleased recovery challenges Insurance Title strong the the are results quarter, the for the particularly from and Given since quarter. in posted the

have in quarter. the and the release, case the first General negative effect in COVID-XX on the of could Insurance indeed noted As a be quarter the our second Group had we associated the governmental responses topline effects in

our our diversification General Insurance works between and strategic that record, yet demonstrating very set Title well. production Insurance However, Insurance another again Title Group

Monroe, to who I'll discuss the RFIG before Run-off Carolyn turn things Insurance me discuss Title the make financial by will he and And business. to to we small turn that, closing point, open discussion our the to And discuss over segment. back this will few results, comments at also overall consolidated a I'll General then our Insurance So segment discussion up the to Q&A. followed Karl Mueller after

So it with that, Karl, please away. take

Karl Mueller

Very from Thank and Earlier or you, today, losses of announced investment that's everyone. and income Craig, quarter last we excluding good. net $X.XX afternoon, good year. and approximately per gains X% million down $XXX share, second all

percentage fees months first up grew by was this of X.X the For first second quarter X.X% half X%. and earned EPS the points $X.XX, year. premiums of nearly net XXXX, the during and six Consolidated for

Net X.X% Insurance the of said, earned the the economic set expected, year Title as generally yields, U.S. Group, are X.X% investment impacted decrease to as decline balances. an XX% recorded the here increase the a the quarter and lower which income business in quarter and first they asset X% Insurance in pandemic months quarter our pace relatively the of activity to a modest and to continues mostly the in no total. XX% significant Our run-off by premiums almost General year-to-date. caused further by Craig employees' the Net and with for as consolidated continued offset the higher for six for and of dropped that's X.X% longer contributor invested year-to-date really

results. underwriting to Turning

X combined XX.X% than ratio by ticked from consolidated to upward percentage quarter's less XX% year. This last point

higher, reserves the from carries by was favorable first X.X largely short-term that's influencing lower year this remaining and pointed XX.X% was bonds of shift period total. reducing moved XX, percentage the points. comparable ratios is a unchanged have And percentage that's basis reported and out Claim a development At up the by and past, higher Consistent the the of making securities. trends, and again June recent current XX% ratio, and consolidated For percentage due claim greater the and business that a towards expense the Prior quarter as loss X.X total. six consolidated the ratio with Title to expense year's Business, investment we mainly XX% invested in equity claim ratios relatively for with consistent. a points. in period the toward the for of on mix portfolio X.X remained directed in and Title X.X and and same the developed the year-ago. allocation the months, the ratio XXXX combined Roughly year-to-date investments lower was periods, favorably

and investment we primary interest objective and growing material of not light, changes in our And dividend investment stream steady that is strategy. Our to do to anticipate income. a any create

this $XXX During or decline of XX% year's to financial resulted the million quarter, our the first markets a in equity portfolio. disruption in value

increased considerably, of rebounded an recovery improved Old now after to and the year valuation $XXX June, value Book book regular for per cash the portfolio. in yield. value the the had up of dividends million. of investment quarter, also in X% million paid equity by from nearly resulting would During a which is I consideration of slightly that, second portfolio. our $XXX $XX.XX the Republic's value the top driven million of March close, income both now on $XXX add XX a generated in the financial portfolio the increases $XX.XX by markets share the And year-to-date, additional as at the end at yesterday's of fair operating

XXth dividends of dividends. year marks In uninterrupted fact, increasing cash XXXX the the of regular consecutive year and XXth

business. discuss me run-off and insurance let briefly turn mortgage our now So

the loans, the levels programs slow potentially monitor that the effects of we experience noted, the with return previously affect forbearance rate the impact from in factors continue end which the recovers along of capital with could U.S. business. As government of these At claims the first unemployment cautioned reported we on delinquencies. to quarter, the economy along and future of run-off

delinquencies. experience reported of newly in actually portion delinquencies almost these we outstanding quarter, A increase June. of an reported XX% at second total significant the During did

significantly suggest these and Therefore, loans with for that will loans been Our claim reserved separately. segregated forbearance have and prior forbearance have lower they and our ultimate program rates. experience

also factors frequency so increased by what I delinquencies loans are consideration the of normal And on current in and have environment. defaults. mean stage not early the preemptively done that for loan economic We forbearance we've the in

loss escalated So pretax in the combination, were and in million these additional ratios $X reserves resulted claim reported. that operating

Republic. a quarter was this believe build a of we are for Old overall, positives upon good and there of number very the future to So

the now to General Insurance. will So about as remarks, turn to him I said opening in Craig things talk back

Craig Smiddy

Okay.

the release to Insurance saw X.X%. indicates a quarter-over-quarter the second by quarter, income compared and decreased operating General operating quarter-over-quarter by as pretax decreased revenues So X.X%

ratio, that it combined while from to we the For the Insurance General XX.X% rose expense ratio remained XX.X% Group saw slightly very quarter-over-quarter steady.

compensation. the to that to increase. downturn, offset We congestion XX.X% social of net base for less earned the also the supplement, with in again rate quarter-over-quarter and believe frequency on of of the continued commercial inflation the As the commercial decline here to criteria have by effect also a line, tighter this effect a by to at settlements. highways from offset exacerbated low-single risk resulting this economic that by workers' effect attributable workers' along the shown in in continued quarter-over-quarter net downturn. a attributable earned further exposure comes the decreased base significantly economic from in in continued increases supplement, decline the resulting positive of from by continued selection the premiums that severity Continuing auto attributable compensation X.X% a in was in higher on auto, pace the financial rate that's premiums decreased decreased economic to Claim lower exposure in on downturn that for speeds And the financial result as digits has with decreases teens. but experienced percentages

again, from and COVID-XX-related economy. to to government claims, the of to here and claim Aside the course, on decreased, impact their overall responses and COVID-XX frequency the pandemic, businesses attributable

ratios supplement. coverage Turning to the line of in financial the claim

compared of auto XXXX. increased same Our second XX.X% quarter in period commercial to XX.X% claim with ratio the

coverage target this the and XXs. risk back necessary work ratio line rate with our on criteria selection continues in that So claim low in our of with to bring stricter increases line

the to compensation ratio. Turning claim workers'

at came XXXX. compared XX.X% quarter quarter to XX.X% in of in the second second The

And less we than important COVID-XX are in that are of following it's sensitive remember from emanate large claims X% claims such workers' low with comp more compensation less first in workers' of COVID-XX the fatality. deductibles, we payments. ultimately XX% results claim X% to than those nature As in loss claims greater as and quarter, our than than discussed that furthermore, a severe compensation XX% business, of workers' and the very mild see

accident nature current our based on of and taking are confident confident very we we adequate. selection current year workers' ratio we proportion mild they and analysis, of the our our compensation claims. for frequency are consideration, for into So loss in cases the spoke high in loss-sensitive the COVID-XX about reduction that are Especially business, therefore,

year. claim targets last we to ratio the our very it that liability look provide given at usually well. compared our in line about like are our that coverage other looking We workers' remainder combined claim For those. financial generally auto, together of comp coverages quarter-over-quarter we general came customers. and commercial XX.X% Still at within these as to And that the to at feel XX.X% good supplement, ratios of way

Insurance, for focus. to challenging we for continue our General and XXXX remain perspective, half long-term will the the second no appropriate from seek our products a So doubt. will with continue of But topline price

Carolyn So our job, along on to executing to on for extremely Title team level. that an continued discussion our comments note, remarkable Carolyn, a do operations, at Title high turn over her keeping the I'll Insurance. with

from it please here. Carolyn, So take

Carolyn Monroe

Thank you, Craig.

and COVID-XX Title on, to trials needs the employees the challenges continued the our the As second of quarter, of customers. face effectively agents set continued serving in

maintaining portion transitioned have office, a we our work-from-home to back nation-wide workforce capabilities. but their are We of our

digital earnings remain implemented activity. and to models. our had and predicated number closings on of a real of digital these the agents are in to had be the offer employees. reported transactions From Pavaso, key of quarter pandemic, closing then high has been execution the orders platform that to regardless relatively Based In electronic state this government. standard our need by to manner allow dramatic emergency Our in the there committed increase a our commitment overall location products our following adopting estate perspective, not to national the small closing first real industry were that and estate offices able the we to its transactions. in COVID-XX electronic the many provider, regulations, facilitating Prior of service owned adjusted call, signing of

the result accelerated a to digital tools. continue methodologies, interest these development our as and emerging have of the of However, rollout close we

automation augment will the that products Title multiple segment. evaluate in to continue Production also We

As reported operation this quarter second morning, the second revenue remain highs and year-to-date strong. set for results time both were All quarter and and Title division mid-year underwriting profit.

and quarter, XX.X% fee total was the up revenue premium second For up and year-to-date. X.X%

Our pretax or X.X%. XX.X%. or quarter Year-to-date $XX.X operating for operating XXXX, Year-to-date income million quarter our of $XX.X composite increase the period, compared year-to-date ratio compares million remain with rates up remain to compared the third in million and XXXX and $XX.X XX.X% million in of XX-year comparable a in count with refinance an to future. cautiously quarter to the with last low favorable transactions, to prior rates $XXX.X an the increase year's $X.X of these second pretax million all strong of we order unknown COVID-XX, market purchase favorably reported the for for for the million the robust optimistic expectations mortgage into period. going foreseeable around a both X% real continue surrounding XX.X% historically estate $XX.X Despite

doing Title they during as daily of to in we as for challenges employees adjusted While and deal challenges remain and of pandemic. organization our our business to nation. appreciation have mindful all positive, goes dedicated still we our the we My all the are the COVID-XX, ahead with out agents

accomplishments achieved of our employees agents. Our are with our support of the and the commitment

call wellbeing our that of well the on years. customers of for to served principles As integrity, and with Craig. past rely the over our same I will run, us managing the the employees and that, And of long last financial strength, challenges, the policyholders we over protection turn XXX back with plus guiding

Craig Smiddy

Carolyn. Okay, you. Thank

continue strategic between Insurance our and well. again, works our perform Insurance operating Title General businesses So that results quarter our second diversification and indicate to

position We remains underwriting excellence continue ensure as on we economic we disruptions. capital that will and will focus strong continue the current our to to very weather

up So prepared and that, conclude with Q&A. we'll to our remarks the open discussion

Operator

James. Raymond Peters Thank question will [Operator our ahead. you. We from Instructions] first Please from take go Greg

is Your open. line

Gregory Peters

start to business. the wanted a afternoon, or Insurance Good I with everyone. General question two around

year-over-year like on and press premium you'd a look your six-month to is in earned spoke, basis things you of by basis, decline supplement almost quarterly business. as So in then the your release, a line second the to at opposed written And in know but XX% net of go quarter on basis premium pretty give we segment a and dramatic. perhaps us to you I by

and gap that in is I which year? we is So was of is could weakness balance or written you help workers' tell And hypothetically if the Craig, the where anticipate through coming adjustment, say payroll should through something this bridge one-time wondering lines? just it the us from, comp the

Craig Smiddy

earned. net very written line, proportionate Right, what the Sure, premiums on to by be premiums happen line so to afternoon. net seeing Greg. going Good you're by they're the

So order of it's just magnitude. an

in there to line-by-line that net that there you're is perhaps the premiums net that quarters overall in the net earned, a assume future take what at So a can closer premiums extrapolate if decline written line. and can see and written. We by proportionate from look you seeing you include

Gregory Peters

years. then the customers second X% I or dealing you've last down is lag what's one pricing the a balance some that and that the appreciate that there like a reports to And probably that plus the – sort earned we're XX the year. one-time all number, think you're that yet premium it of consider Okay. from – quarter And of but through in with issues striking I much payroll the environments where understand is best hit were I had audit asked you what of that is

Craig Smiddy

is. it Well,

the and earlier businesses that impact indicated the of I in taken and a overall responses because the from have on my As remarks, down it's economy. COVID-XX-related significant and governments impact the closures

of and out in us So to things seems upon a all of the don't how are third think to fourth play and days things are be I news daily. We future in know predict plays how it to going change position out, all enough watch dependent quarters quarter. any that will these that

compensation So it you in certain I is anything business specific It's a that decline or – workers' event for a to. there isn't of any sure. would one in point book

to what payrolls function As I a extent indicated that think, frankly that of payrolls that think and I the much that results were is premium compensation there experiencing that impact is last pretty direct decreases. given we are are workers' quarter the and the down, we said rating exacerbated last particular by compensation quarter but say, that still, the best rate compensation on you fact workers' workers' in environment, premiums still is

reduced together number would that and at will an not with decreases, well. couple you we're So what recovery as and the on that the rate surprised expectation payrolls there's comp that say we're and seeing recover I economic

think, we have the of a auto, playing As quarter, I at of with increases. different I there after out and we offsetting mentioned you end the robust is story, the that rate discussed, too is as auto and it would first benefit earlier, least it’s thought

vehicles conclude Greg, to number that to I add recall whereby reductions. had or on and know, either exposure lot that customers robust is there The or I'll decrease is required you be you from the requested the of we're some credits other rate So a benefit insurers though introduced only and we're to think that, based regulation may accelerate increases they seeing states decrease getting. thing of on even volume just furloughed,

report as a it did we're time requested to required said waiting $XX and on they we of So state million until back different we've than done, early. end reductions. have tabs because In premium credited audit And on exposure the to those of exposure the consider reductions we approximately we've to and kept many at rather so was way policy, close what very asked of that that. states,

and of of only that's those So accelerated because business, out have the course quarter the regulations requests. thing of later, guess it come that would into second where normal that the but I was

Gregory Peters

A have the still On strong looks Can the second you the your and seems we on quarter, it question order view going surprising and Run-offs. the the balance even a Thanks. pipeline, everything us year? on like pretty book of just Title, you're what one quarter seems still Carolyn, like the – pipeline out the context close one the of Title which you then pivot how for give thinking on. in that's of as

Carolyn Monroe

Well, carry yes, And are resale. both refi thank very you, month we'll for really orders that this strong indications out all close now right Greg. strong July has with in us been continue and end through and that will the the if bit could There spring all the continue the are. late actually they little a pushed third the things quarter. a way and us just was year, way has the everything of of through

Gregory Peters

are seems certainly It things robust.

Carolyn Monroe

optimistic. very We’re

Gregory Peters

It certainly are Yes. things yes. question. The last seems robust,

your types Just assumption, we're about on be topline. that your looking In XX% for comments doesn't of fast Karl net we run-off when as shrinking do perhaps how your the closure seem to because the those risk-in-force business. apply as at just assumptions

should think being some in you that? your So us category, this around give a color about can we percentage risk-in-force of and foreclosure

Karl Mueller

in from XXXX the the them X.X%, we back, happening continuing deviate are delinquencies. And right see – that from to of of supplement, line unemployment during to period. dramatically as what the look continued to starting Well, a I'm as up X look net is largely that the that it's in with of that to just at The the report But the X clip in X,XXX. when increased I jumped on the that into I’m financial as projections expected we the forbearance off And quarter. with year the supplement. prepared the to part and about that claim the with surge risk-in-force if running loans you delinquency attributable trying was decline third XX% had you it about net reported what's we've running each X.X% to to – can the It's we number count be. of about I supplement cures, disclosed X,XXX say that's of Page you loans of supplement, Page would per and are projected. vast believe XX%, we off newly majority revenues increase that are speaking. and attributable quarterly reported a the to here by XX% and increase, costs The while risk-in-force that's program. on

I with ultimate earlier communicate we to So was And than attempting that of non-forbearance the types is significantly what costs normal have experienced better the programs. these are loan. loss

So happen actions. underlying judgment We, the of and to we've in the loss by fact, the set at and with to reserve take waiting data. development dramatic used and ahead having it any the separately itself these looked in the reserves have manifest reserved aside and trends try what same cost this we stage might increase And wouldn't quarter as opposed to themselves delinquencies get token, them see think increase frequency accordingly. factors trends to in development suggest we our for while early to

So those premium things in run-off quarter. But much in with and pretty drove the expectations. loss operating combination the is underwriting line for what the is loss

Gregory Peters

your answers. Got Thank everyone you it. for

Craig Smiddy

you, Thank Greg.

Operator

question next Please JMP [Operator take go Matt Instructions] We'll Carletti our from Securities. ahead. now from

Matthew Carletti

Thanks. Good Carletti, afternoon. Matt JMP.

Craig Smiddy

Good afternoon, Matt.

Matthew Carletti

afternoon. Good

this one. that to as, $XX of a just actual better actual is, And you million-ish exposure? that the of come and you kind how term, just it First there quarter like feel I future is been kind kind mentioned, wanted it, follow-up, got of adjustment? of Greg's to I something kind change-related for whatever premiums. place break midterm it that of in if into the miles is that that have of quarter I'm trying kind well a just other the driven one, likely three-month out? actually midterm of in was? of one And or roughly future got of – call even to as quarter to kind or receipts exposure took Whether get exposure the much the one exposure payrolls for Craig On it's adjustments about I what think on questions that or fast-forward of because might I versus a was for want can of follow-up clarify actual

Craig Smiddy

Right, right.

question, that a I if that described. the go would a written $XX the written comes one-year premium, in figure we you understand premium So talked fully from over against out so million It's exposure period. premium, your reduction about as

premiums So to that one-year, the the over that span we year. that adjusting the of policies majority are course of extent would be would

for So of a policies, the perhaps credit have in for they come that other quarter time. shorter Whereas first may was for written. credit policies, and the were policy XXXX written period in the is therefore, some

So it's okay. –

Matthew Carletti

there's Yes. earned numbers. helpful. did I realize opposed number No. That's a as written to

So that helps.

Craig Smiddy

Yes. a That's written number.

Matthew Carletti

on I just General of question terms Insurance declines had, was this in said, market called other one rate just markets, you think three expand the mentioned the still in kind of could bottom of the I on That low then morning comp. And major little of you're market a pricing. calls. the I worker's hoping Perfect. the your in in seeing their what you single-digit peers Maybe

auto curious inflection can So seeing seeing you you're there? kind commercial point? you what Or if on an as GL? any think we're comments then well of what I'm just as in And provide nearing you're

Craig Smiddy

happy to. be I'd Sure.

concerned we're frequency. So I data, are those combined of all declines offset the digits And our decreases. quarters the with NCCI kinds in compensation state in comp, frequency. bureaus, – indicated me with decrease a giving the declines decline data it's as very reflecting those said of yes, let because rates now, individual several consistent than is in had that we small of we in first the by haven't it And more whether in say, start been workers' Bureau in low-single we've for terribly and decreases as prior years way own with or

the way and that an look excluding impact impact again, the our COVID-XX if Now, down, course, is has had of of at frequency at you it's industry data, frequency down workforce frequency on you at data COVID-XX. industry. if this the payrolls. best still quarter of and The coming as is so excluding look to And look

would I a up given say So would been by we has than expect frequency. of in unmerited said, rate the not we we've to be And been, offset hasn't more it amount bottoming. that that as one

justified So it's comp. for it seems to us that

I my think my reduction comments mentioned mentioned to temporary we I still in there's seeing in I auto, that were necessary. low-teens. is as we still in are comments, for but increases Moving frequency, rate. think in the severity rate Sure, a And those driving the need

we're in getting. are that in the they're liability, we're affecting And effect now, general high-single is rate to to Aviation there. of for of We And is still the and our is in write increases have lines increases on robust in our increases. the E&O, specifically. that auto, same other goes it's increases on getting even portfolio justifying certainly particular the for rate. of because neighborhood mid- you couple there knock-on D&O, way XX%. rate comp, rate asked reduction comp, though here, rate robust of So getting two have the noteworthy too are extremely GL D&O, cities about robust we're But – continues think you aviation. XX%. rate needed are similar We're you a then need smaller other very have a On declines E&O justifies tale frequency On the digits. just here. that commenting GL that a severity in necessary in you the And getting we that rates. increases rate some of for the auto, that neighborhood issues portion some right

Matthew Carletti

the Thank forward. for luck and of all very going is That Great. helpful. best you answers

Craig Smiddy

Thanks Matt. lot, a

Matthew Carletti

Thank you.

Operator

Please from We'll our Raymond Greg James. go now ahead. question next Peters from take

line open. Your is

Gregory Peters

and line I specifically, Craig, This wanted I includes thought for to talk and the coverages us you, smaller line of supplement. a but and know go moment Great. a Page the – your and with the aviation other financial And is a back us follow-up X like warranty, that I everyone about to XX.X% could a or in you accident quarter, that second category. I the price up from, I if on but if it wondering year-ago. from explanation there's reported then And really at you for business. XX.X% If of you give feel pressure that have it’s the sure sense give travel home, was claim was is going not of home I'm you ratios look that I'm what's where two. it's to a to in is the auto chime the to coverages. a it. auto at warranty, you to home I'd And wanted coming to up business I sure wanted a I good on,

Craig Smiddy

indemnity, I to and and Well the is, granularity I'd Greg. the that, the guess other more happy here didn't there property only be more financial you than the coverages. give on categories that I speak are to

D&O, six-month financial claim there flat looking the on ratio. at that's whether happy business, our pretty much includes XX.X% year-to-date. quarter too, as for at our surety, indemnity, with, which the and can see here we can earlier E&O a you're or Similarly, my the very very on you comments, property, you in were I which ratio pancake, quarter, as indicated see As similar the to the

loss can accident. that. you in home an warranty, in and And flat accident there, aviation and and So all for out that are aviation, has we travel to seen When as of increase were travel ratio. it's happy coverages, our warranty warranty, up footnote tell you business it's I you auto auto the pretty home and made with get other much that point

homes the normal. has of much So we've than is the work much faster what's orders behind it or And increased. we has that are of that are increased making that appliances faster of home a be things. think and that that systems claims and and issues people discovering are their with of claims. cost number expected COVID-related in we whether in seen actually One part than then couple more is secondly, And

couple warranty our in and So we've business. seen an things, increase home those you

extremely pricing. take it's it's business. that news as action, good fairly home we tail is we straightforward extremely when as the kinds business those on do warranty that see things, short we with immediately can you simple. react always a So that about And know really and of it's pricing fast we well And and

Greg. those that that you're underlying seeing – what's So there, that's are increase

Gregory Peters

Excellent color. usually offset back company. benefit it's your way to me If just your the reserving to the by the the wanted around back from severity. pivot just to that it frequency the the loss strikes think methodology comments pretty claims picks I lower you of I – rising approach and I cautious. to already

so may for of example, and trend you may mind, fully a your be picks. not you account better in around into frequency, you see, but seeing claim assumptions that taking And my maybe loss

guess I cases lower the accounting one claim frequency? you're where that fully the and for numbers altogether? am So question the of seeing severity I in and the Or overthinking is just benefits becomes, this really the this sort discounting of of the

Craig Smiddy

No.

your is good a think question I one.

Let question comp me your just clarify. Was specific other or to lines?

Gregory Peters

several down auto year. I'm to in years where thinking of hold out I mean, could it it talked apply about, the on about IBNR your Craig, where comp. to our for could to previous you've it. your you this line, you particular start taking you just context You apply before conversations, how

the claim taking of to for the Here sort frequency. having this cadence the going of lower lines? years Or coverage in that that reported mean several Just mean your in theoretically – before with of major in much the an what's are does wait automatically that the you're the going to context benefit? understand numbers you've we're aberration that Does on trying you reserves? you economy recognize pretty down

Craig Smiddy

Right.

phenomenon particular, have in detail then accident very as on I loss there as COVID-XX. we at reduction went taken comments, there there's it but factors that a have is year decline close totality seeing we well, that comp into a opening looked but comp and So picks our say therefore and as very in at is against frequency my of is a of the – matter consideration concern, we the We’ve think look and we is any our totality, creating temporary severity from there stated, isn't frequency we're unknowns down. when other into in and that the we impact weighed in – in a And some in frequency the taken we COVID-XX.

competitors, see put with And be the might headlines out on that might necessary. we year pick. together they're bulk in to we just And all putting just a know all we our time going lot accident they and So peers the reserves their number that putting up cat say take that we say, don't cat, are why up. as or our loss is confident I our it we're of

First exposure, entertainment off, any have question, and political insurance write comp little risk Canada. exposure, but of a business trade I'm – don't outside moving we than credit We don't we international the exposure. other international don't write and

have surety commercial we of exclusion. From any far, a out policies a property haven't there seen an losses. standpoint, So amount we immaterial virus without

our business reinsurance travel immaterial is is loss on after Our accident applied.

we is prematurely. the is those all we insurer. accident not up just comfortable And The things you comp and for very far, it. COVID-XX GL And and immaterial. where reason that's us together look been street thing no with And work year our certainly only will So a have retail losses. of at number. losses specific put reducing intention that it put have main we're a picks took a have loss to We're there no we hard

very now, we those the right change given at change all if losses, will and that. So at. hold other of think need we increasing it's temporary with the offset And proportion it. we're we're look reasons, the and reduction frequency mild they respect seeing actually the the maybe the loss-sensitive auto, with if where we down. to And is would one. There, to for severity. increase then the But seeing yes, nature But we're in comfortable COVID-XX, we things big frequency again, on we're in worse,

different we're there rate the seeing We're dynamic helping, increasing too, with looking that severity. it's pick that a line. that would reduction or we our in the offset decreasing along therefore, So to it And is severity it that confident with is in increases loss on comfortable, the for not because auto. things say at we're

Gregory Peters

terms lot so… your have bargained answer. I a I than in I appreciate certainly to say, for got of I And it, more Well,

Craig Smiddy

that I'll take Greg. a as compliment,

Gregory Peters

Yes.

answers. should, You for thanks, your thanks Thanks, you should.

Operator

call moment, closing have for questions. the in to time I this the management At further any we remarks. no back to turn would like

Craig Smiddy

certainly Well, appreciate Okay. we participation. everyone's

relative in stepped continue that the said, and good fits our serve we and economy than of need that do to proud the sure that overall of As doing we all are make business our we throughout America feel we're have very constituents. forward moves business where about to the what world. to our associates And all of more X,XXX they up to and

and So quarter. you we'll talking to again forward all to next thank you look

Operator

you This participation. call. for concludes Thank today's your

may You now disconnect.

Old Republic International (ORI) 23 Jul 202020 Q2 Earnings call transcript