falsedesktopORI2020-09-30000007426020000113{"tbl_sim": "https://q10k.com/tbl-sim", "search": "https://q10k.com/search"}{"q10k_tbl_0": "☒\tQuarterly report pursuant to section 13 or 15(d) of the Security Exchange Act of 1934\t\n\tfor the quarterly period ended:\tSeptember 30 2020\nor\t\t\n☐\tTransition report pursuant to section 13 or 15(d) of the Security Exchange Act of 1934\t\n", "q10k_tbl_1": "Large accelerated filer\t☒\tAccelerated filer\t☐\nNon-accelerated filer\t☐\tSmaller reporting company\t☐\n\t\tEmerging growth company\t☐\n", "q10k_tbl_2": "OLD REPUBLIC INTERNATIONAL CORPORATION\t\t\nReport on Form 10-Q / September 30 2020\t\t\nINDEX\t\t\n\t\tPAGE NO.\nPART I\tFINANCIAL INFORMATION:\t\n\tCONSOLIDATED BALANCE SHEETS\t3\n\tCONSOLIDATED STATEMENTS OF INCOME\t4\n\tCONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME\t5\n\tCONSOLIDATED STATEMENTS OF PREFERRED STOCK AND COMMON\t\n\tSHAREHOLDERS' EQUITY\t6\n\tCONSOLIDATED STATEMENTS OF CASH FLOWS\t7\n\tNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\t8 - 19\n\tMANAGEMENT ANALYSIS OF FINANCIAL POSITION AND RESULTS OF OPERATIONS\t20 - 49\n\tQUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK\t50\n\tCONTROLS AND PROCEDURES\t50\nPART II\tOTHER INFORMATION:\t\n\tITEM 1 - LEGAL PROCEEDINGS\t51\n\tITEM 1A - RISK FACTORS\t51\n\tITEM 6 - EXHIBITS\t52\nSIGNATURE\t\t53\nEXHIBIT INDEX\t\t54\n", "q10k_tbl_3": "Old Republic International Corporation and Subsidiaries\t\t\nConsolidated Balance Sheets\t\t\n($ in Millions Except Share Data)\t\t\n\t(Unaudited)\t\n\tSeptember 30\tDecember 31\n\t2020\t2019\nAssets\t\t\nInvestments:\t\t\nAvailable for sale:\t\t\nFixed maturity securities (at fair value) (amortized cost: $9620.9 and $8537.3)\t10206.6\t8796.5\nShort-term investments (at fair value which approximates cost)\t748.1\t484.3\nTotal\t10954.8\t9280.9\nHeld to maturity:\t\t\nFixed maturity securities (at amortized cost) (fair value: $- and $1058.2)\t0\t1021.7\nEquity securities (at fair value) (cost: $3271.0 and $3089.1)\t3682.9\t4030.5\nOther investments\t25.2\t26.0\nTotal investments\t14662.9\t14359.2\nOther Assets:\t\t\nCash\t95.0\t78.8\nAccrued investment income\t88.0\t89.3\nAccounts and notes receivable\t1734.0\t1466.7\nFederal income tax recoverable: Current\t0\t5.7\nReinsurance balances and funds held\t202.2\t178.4\nReinsurance recoverable: Paid losses\t81.0\t68.5\nPolicy and claim reserves\t4278.8\t3755.3\nDeferred policy acquisition costs\t328.8\t325.4\nSundry assets\t777.6\t748.5\nTotal Other Assets\t7585.7\t6717.1\nTotal Assets\t22248.7\t21076.3\nLiabilities Preferred Stock and Common Shareholders' Equity\t\t\nLiabilities:\t\t\nLosses claims and settlement expenses\t10557.1\t9929.5\nUnearned premiums\t2495.6\t2224.7\nOther policyholders' benefits and funds\t194.3\t194.4\nTotal policy liabilities and accruals\t13247.1\t12348.7\nCommissions expenses fees and taxes\t540.3\t550.9\nReinsurance balances and funds\t852.1\t616.0\nFederal income tax payable: Current\t9.4\t0\nFederal income tax payable: Deferred\t66.4\t112.2\nDebt\t966.2\t974.0\nSundry liabilities\t492.5\t474.1\nCommitments and contingent liabilities\t\t\nTotal Liabilities\t16174.0\t15076.1\nPreferred Stock (1)\t0\t0\nCommon Shareholders' Equity:\t\t\nCommon stock (1)\t304.0\t303.6\nAdditional paid-in capital\t1305.6\t1297.5\nRetained earnings\t4234.9\t4386.0\nAccumulated other comprehensive income (loss)\t336.1\t77.7\nUnallocated ESSOP shares (at cost)\t(106.1)\t(64.8)\nTotal Common Shareholders' Equity\t6074.6\t6000.1\nTotal Liabilities Preferred Stock and Common Shareholders' Equity\t22248.7\t21076.3\n", "q10k_tbl_4": "Old Republic International Corporation and Subsidiaries\t\t\t\t\nConsolidated Statements of Income (Unaudited)\t\t\t\t\n($ in Millions Except Share Data)\t\t\t\t\n\tQuarters Ended\t\tNine Months Ended\t\n\tSeptember 30\t\tSeptember 30\t\n\t2020\t2019\t2020\t2019\nRevenues:\t\t\t\t\nNet premiums earned\t1496.0\t1423.4\t4225.8\t4016.5\nTitle escrow and other fees\t168.9\t138.2\t418.9\t363.8\nTotal premiums and fees\t1664.9\t1561.7\t4644.8\t4380.4\nNet investment income\t106.4\t112.7\t329.3\t337.8\nOther income\t31.7\t32.9\t98.5\t97.4\nTotal operating revenues\t1803.0\t1707.3\t5072.7\t4815.7\nInvestment gains (losses):\t\t\t\t\nRealized from actual transactions\t1.4\t6.3\t12.7\t31.3\nRealized from impairments\t0\t0\t0\t(2.0)\nUnrealized from changes in fair value of\t\t\t\t\nequity securities\t79.2\t57.3\t(529.4)\t439.3\nTotal realized and unrealized investment\t\t\t\t\ngains (losses)\t80.7\t63.6\t(516.7)\t468.7\nTotal revenues\t1883.8\t1771.0\t4556.0\t5284.4\nBenefits Claims and Expenses:\t\t\t\t\nBenefits claims and settlement expenses\t633.2\t659.5\t1870.8\t1887.9\nDividends to policyholders\t4.9\t4.2\t14.0\t17.2\nUnderwriting acquisition and other expenses\t929.1\t845.0\t2603.0\t2372.0\nInterest and other charges\t9.5\t9.7\t31.8\t30.8\nTotal expenses\t1576.8\t1518.6\t4519.8\t4308.0\nIncome (loss) before income taxes (credits)\t306.9\t252.4\t36.1\t976.3\nIncome Taxes (Credits):\t\t\t\t\nCurrent\t45.0\t38.9\t110.9\t113.2\nDeferred\t15.9\t10.5\t(113.7)\t82.4\nTotal\t60.9\t49.5\t(2.7)\t195.6\nNet Income (Loss)\t246.0\t202.8\t38.9\t780.6\nNet Income (Loss) Per Share:\t\t\t\t\nBasic\t.83\t.68\t.13\t2.60\nDiluted\t.83\t.67\t.13\t2.59\nAverage shares outstanding: Basic\t297729418\t299894995\t298526123\t299740751\nDiluted\t297990822\t301384364\t299015526\t301034156\n", "q10k_tbl_5": "Old Republic International Corporation and Subsidiaries\t\t\t\t\nConsolidated Statements of Comprehensive Income (Unaudited)\t\t\t\t\n($ in Millions)\t\t\t\t\n\tQuarters Ended\t\tNine Months Ended\t\n\tSeptember 30\t\tSeptember 30\t\n\t2020\t2019\t2020\t2019\nNet Income (Loss) As Reported\t246.0\t202.8\t38.9\t780.6\nOther comprehensive income (loss):\t\t\t\t\nUnrealized gains (losses) on securities:\t\t\t\t\nUnrealized gains (losses) before reclassifications\t\t\t\t\nnot included in the statements of income\t32.3\t53.3\t321.5\t366.6\nAmounts reclassified as realized investment (gains)\t\t\t\t\nlosses in the statements of income\t(.7)\t7.3\t7.8\t10.7\nPretax unrealized gains (losses) on securities\t31.6\t60.7\t329.3\t377.3\nDeferred income taxes (credits)\t6.6\t12.7\t69.5\t79.5\nNet unrealized gains (losses) on securities net of tax\t24.9\t48.0\t259.8\t297.8\nDefined benefit pension plans:\t\t\t\t\nNet pension adjustment before reclassifications\t0\t0\t0\t(2.6)\nAmounts reclassified as underwriting acquisition\t\t\t\t\nand other expenses in the statements of income\t.9\t1.0\t2.7\t3.0\nPretax net adjustment related to defined benefit\t\t\t\t\npension plans\t.9\t1.0\t2.7\t.4\nDeferred income taxes (credits)\t.1\t.2\t.5\t.1\nNet adjustment related to defined benefit pension\t\t\t\t\nplans net of tax\t.7\t.8\t2.1\t.3\nForeign currency translation and other adjustments\t2.8\t(1.6)\t(3.6)\t3.8\nTotal other comprehensive income (loss)\t28.5\t47.2\t258.3\t302.0\nComprehensive Income (Loss)\t274.5\t250.1\t297.3\t1082.7\n", "q10k_tbl_6": "Old Republic International Corporation and Subsidiaries\t\t\t\t\nConsolidated Statements of Preferred Stock\t\t\t\t\nand Common Shareholders' Equity (Unaudited)\t\t\t\t\n($ in Millions)\t\t\t\t\n\tQuarters Ended\t\tNine Months Ended\t\n\tSeptember 30\t\tSeptember 30\t\n\t2020\t2019\t2020\t2019\nConvertible Preferred Stock:\t\t\t\t\nBalance beginning and end of period\t0\t0\t0\t0\nCommon Stock:\t\t\t\t\nBalance beginning of period\t304.0\t303.2\t303.6\t302.7\nDividend reinvestment plan\t0\t0\t0\t0\nNet issuance of shares under stock based compensation plans\t0\t.3\t.3\t.7\nBalance end of period\t304.0\t303.5\t304.0\t303.5\nAdditional Paid-in Capital:\t\t\t\t\nBalance beginning of period\t1305.1\t1288.6\t1297.5\t1277.6\nDividend reinvestment plan\t.2\t1.0\t.7\t1.4\nNet issuance of shares under stock based compensation plans\t.1\t4.3\t4.8\t10.3\nStock based compensation\t.4\t.4\t2.0\t3.6\nESSOP shares released\t0\t.8\t.7\t2.1\nOther - net\t(.2)\t0\t(.2)\t0\nBalance end of period\t1305.6\t1295.2\t1305.6\t1295.2\nRetained Earnings:\t\t\t\t\nBalance beginning of period\t4051.2\t4326.7\t4386.0\t3849.8\nChange in accounting principle\t0\t0\t(2.3)\t18.4\nBalance beginning of period as adjusted\t4051.2\t4326.7\t4383.6\t3868.3\nNet income (loss)\t246.0\t202.8\t38.9\t780.6\nDividends on common shares ($.21 $1.20 $.63 and $1.60 per\t\t\t\t\ncommon share)\t(62.4)\t(359.4)\t(187.7)\t(478.8)\nBalance end of period\t4234.9\t4170.1\t4234.9\t4170.1\nAccumulated Other Comprehensive Income (Loss):\t\t\t\t\nBalance beginning of period\t307.5\t44.8\t77.7\t(210.0)\nNet unrealized gains (losses) on securities net of tax\t24.9\t48.0\t259.8\t297.8\nNet adjustment related to defined benefit pension plans\t\t\t\t\nnet of tax\t.7\t.8\t2.1\t.3\nForeign currency translation and other adjustments\t2.8\t(1.6)\t(3.6)\t3.8\nBalance end of period\t336.1\t92.0\t336.1\t92.0\nUnallocated ESSOP Shares:\t\t\t\t\nBalance beginning of period\t(109.0)\t(69.4)\t(64.8)\t(73.9)\nESSOP shares released\t2.8\t2.2\t8.6\t6.8\nPurchase of unallocated ESSOP shares\t0\t0\t(50.0)\t0\nBalance end of period\t(106.1)\t(67.1)\t(106.1)\t(67.1)\n", "q10k_tbl_7": "Old Republic International Corporation and Subsidiaries\t\t\nConsolidated Statements of Cash Flows (Unaudited)\t\t\n($ in Millions)\t\t\n\tNine Months Ended\t\n\tSeptember 30\t\n\t2020\t2019\nCash flows from operating activities:\t\t\nNet income (loss)\t38.9\t780.6\nAdjustments to reconcile net income (loss) to\t\t\nnet cash provided by operating activities:\t\t\nDeferred policy acquisition costs\t(3.3)\t(16.5)\nPremiums and other receivables\t(263.5)\t(188.3)\nUnpaid claims and related items\t328.8\t142.8\nUnearned premiums and other policyholders' liabilities\t46.0\t81.0\nIncome taxes\t(99.7)\t97.1\nPrepaid federal income taxes\t0\t(8.6)\nReinsurance balances\t193.1\t130.5\nRealized investment (gains) losses from actual transactions and impairments\t(12.7)\t(29.3)\nUnrealized investment (gains) losses from changes in fair value\t\t\nof equity securities\t529.4\t(439.3)\nAccounts payable accrued expenses and other\t51.9\t116.1\nTotal\t808.9\t666.2\nCash flows from investing activities:\t\t\nFixed maturity securities:\t\t\nAvailable for sale:\t\t\nMaturities and early calls\t935.3\t464.4\nSales\t343.6\t430.3\nSales of:\t\t\nEquity securities\t159.1\t520.6\nOther - net\t7.1\t28.2\nPurchases of:\t\t\nFixed maturity securities:\t\t\nAvailable for sale\t(1380.2)\t(1016.4)\nEquity securities\t(321.0)\t(430.2)\nOther - net\t(31.7)\t(42.4)\nNet decrease (increase) in short-term investments\t(263.6)\t(132.0)\nOther - net\t(.4)\t(1.2)\nTotal\t(551.9)\t(178.6)\nCash flows from financing activities:\t\t\nIssuance of common shares\t6.0\t12.7\nRedemption of debentures and notes\t(8.6)\t(8.4)\nPurchase of unallocated common shares by ESSOP\t(50.0)\t0\nDividends on common shares (including a special dividend paid in September\t\t\n2019 of $303.4)\t(187.7)\t(478.8)\nOther - net\t(.5)\t(3.7)\nTotal\t(240.8)\t(478.3)\nIncrease (decrease) in cash\t16.1\t9.2\nCash beginning of period\t78.8\t100.3\nCash end of period\t95.0\t109.6\nSupplemental cash flow information:\t\t\nCash paid (received) during the period for: Interest\t41.3\t41.9\nIncome taxes\t98.2\t99.0\n", "q10k_tbl_8": "\tQuarters Ended\t\tNine Months Ended\t\n\tSeptember 30\t\tSeptember 30\t\n\t2020\t2019\t2020\t2019\nNumerator:\t\t\t\t\nBasic and diluted earnings per share -\t\t\t\t\nincome (loss) available to common stockholders\t246.0\t202.8\t38.9\t780.6\nDenominator:\t\t\t\t\nBasic earnings per share -\t\t\t\t\nweighted-average shares (a)\t297729418\t299894995\t298526123\t299740751\nEffect of dilutive securities - stock based\t\t\t\t\ncompensation awards\t261404\t1489369\t489403\t1293405\nDiluted earnings per share -\t\t\t\t\nadjusted weighted-average shares (a)\t297990822\t301384364\t299015526\t301034156\nEarnings per share: Basic\t.83\t.68\t.13\t2.60\nDiluted\t.83\t.67\t.13\t2.59\nAnti-dilutive common stock equivalents\t\t\t\t\nexcluded from earnings per share computations:\t\t\t\t\nStock based compensation awards\t8063111\t40000\t5858669\t2238055\n", "q10k_tbl_9": "\tAmortized Cost\tGross Unrealized Gains\tGross Unrealized Losses\tEstimated Fair Value\nFixed Maturity Securities by Type:\t\t\t\t\nSeptember 30 2020:\t\t\t\t\nAvailable for sale:\t\t\t\t\nU.S. & Canadian Governments\t1860.2\t105.4\t.1\t1965.5\nTax-exempt\t1004.1\t66.8\t0\t1071.0\nCorporate\t6756.5\t425.5\t11.9\t7170.1\n\t9620.9\t597.8\t12.1\t10206.6\nDecember 31 2019:\t\t\t\t\nAvailable for sale:\t\t\t\t\nU.S. & Canadian Governments\t1842.3\t36.9\t.4\t1878.8\nCorporate\t6694.9\t225.5\t2.8\t6917.6\n\t8537.3\t262.5\t3.3\t8796.5\nHeld to maturity:\t\t\t\t\nTax-exempt\t1021.7\t36.5\t0\t1058.2\n", "q10k_tbl_10": "\tAmortized Cost\tEstimated Fair Value\nFixed Maturity Securities Stratified by Contractual Maturity at September 30 2020:\t\t\nAvailable for sale:\t\t\nDue in one year or less\t993.2\t1003.2\nDue after one year through five years\t5444.9\t5750.7\nDue after five years through ten years\t3036.4\t3303.2\nDue after ten years\t146.3\t149.3\n\t9620.9\t10206.6\n", "q10k_tbl_11": "Fixed Maturity Securities Stratified by Credit Quality (a):\t\t\t\n\tAll Fixed Maturity Securities\t\tHeld to Maturity\n\tSeptember 30\tDecember 31\tDecember 31\n\t2020\t2019\t2019\nAaa\t24.5%\t23.9%\t39.5%\nAa\t12.5\t13.1\t52.5\nA\t33.6\t32.6\t8.0\nBaa\t26.5\t26.1\t0\nTotal investment grade\t97.1\t95.7\t100.0\nAll other (b)\t2.9\t4.3\t0\nTotal\t100.0%\t100.0%\t100.0%\n", "q10k_tbl_12": "\tLess than 12 Months\t\t12 Months or Greater\t\tTotal\t\n\tFair Value\tUnrealized Losses\tFair Value\tUnrealized Losses\tFair Value\tUnrealized Losses\nSeptember 30 2020:\t\t\t\t\t\t\nFixed Maturity Securities:\t\t\t\t\t\t\nAvailable for sale:\t\t\t\t\t\t\nU.S. & Canadian Governments\t210.3\t.1\t0\t0\t210.3\t.1\nCorporate\t514.3\t11.9\t1.3\t0\t515.7\t11.9\n\t724.7\t12.1\t1.3\t0\t726.0\t12.1\nNumber of available for sale\t\t\t\t\t\t\nsecurities in unrealized\t\t\t\t\t\t\nloss position\t\t94\t\t4\t\t98\nDecember 31 2019:\t\t\t\t\t\t\nFixed Maturity Securities:\t\t\t\t\t\t\nAvailable for sale:\t\t\t\t\t\t\nU.S. & Canadian Governments\t217.2\t.3\t53.0\t.1\t270.3\t.4\nCorporate\t176.4\t1.9\t54.3\t.8\t230.7\t2.8\n\t393.7\t2.3\t107.4\t1.0\t501.1\t3.3\nNumber of available for sale\t\t\t\t\t\t\nsecurities in unrealized\t\t\t\t\t\t\nloss position\t\t54\t\t47\t\t101\nHeld to maturity:\t\t\t\t\t\t\nTax-exempt\t0\t0\t21.7\t0\t21.7\t0\nNumber of held to maturity\t\t\t\t\t\t\nsecurities in unrealized\t\t\t\t\t\t\nloss position\t\t0\t\t8\t\t8\n", "q10k_tbl_13": "\tEquity Securities\t\t\t\n\tCost\tGross Unrealized Gains\tGross Unrealized Losses\tEstimated Fair Value\nSeptember 30 2020\t3271.0\t776.3\t364.4\t3682.9\nDecember 31 2019\t3089.1\t968.0\t26.6\t4030.5\n", "q10k_tbl_14": "\tFair Value Measurements\t\t\t\nAs of September 30 2020:\tLevel 1\tLevel 2\tLevel 3\tTotal\nAvailable for sale:\t\t\t\t\nFixed maturity securities:\t\t\t\t\nU.S. & Canadian Governments\t1157.8\t807.7\t0\t1965.5\nTax-exempt\t0\t1071.0\t0\t1071.0\nCorporate\t0\t7159.6\t10.5\t7170.1\nShort-term investments\t748.1\t0\t0\t748.1\nEquity securities\t3681.0\t0\t1.8\t3682.9\nAs of December 31 2019:\t\t\t\t\nAvailable for sale:\t\t\t\t\nFixed maturity securities:\t\t\t\t\nU.S. & Canadian Governments\t1068.1\t810.7\t0\t1878.8\nCorporate\t0\t6907.1\t10.5\t6917.6\nShort-term investments\t484.3\t0\t0\t484.3\nHeld to maturity:\t\t\t\t\nFixed maturity securities:\t\t\t\t\nTax-exempt\t0\t1058.2\t0\t1058.2\nEquity securities\t4028.7\t0\t1.7\t4030.5\n", "q10k_tbl_15": "\tQuarters Ended\t\tNine Months Ended\t\n\tSeptember 30\t\tSeptember 30\t\n\t2020\t2019\t2020\t2019\nInvestment income:\t\t\t\t\nFixed maturity securities\t71.3\t74.4\t218.3\t224.3\nEquity securities\t36.1\t36.2\t111.1\t106.6\nShort-term investments\t.1\t2.7\t2.3\t7.6\nOther sources\t.3\t1.0\t2.7\t4.4\nGross investment income\t107.9\t114.4\t334.5\t343.1\nInvestment expenses (a)\t1.5\t1.7\t5.1\t5.2\nNet investment income\t106.4\t112.7\t329.3\t337.8\nInvestment gains (losses):\t\t\t\t\nFrom actual transactions:\t\t\t\t\nFixed maturity securities:\t\t\t\t\nGains\t6.3\t.8\t10.0\t4.6\nLosses\t(5.6)\t(6.0)\t(17.9)\t(11.1)\nNet\t.6\t(5.1)\t(7.8)\t(6.5)\nEquity securities:\t\t\t\t\nGains\t.7\t42.7\t21.7\t97.0\nLosses\t0\t(29.0)\t(1.2)\t(57.0)\nNet\t.7\t13.6\t20.5\t40.0\nOther investments net\t0\t(2.2)\t0\t(2.1)\nTotal from actual transactions\t1.4\t6.3\t12.7\t31.3\nFrom impairments\t0\t0\t0\t(2.0)\nFrom unrealized changes in fair value of equity securities\t79.2\t57.3\t(529.4)\t439.3\nTotal realized and unrealized investment gains (losses)\t80.7\t63.6\t(516.7)\t468.7\nCurrent and deferred income taxes (credits)\t16.9\t13.5\t(108.7)\t98.7\nNet of tax realized and unrealized investment gains (losses)\t63.7\t50.1\t(408.0)\t369.9\nChanges in unrealized investment gains (losses)\t\t\t\t\nreflected directly in shareholders' equity:\t\t\t\t\nFixed maturity securities\t31.5\t58.2\t325.9\t373.6\nLess: Deferred income taxes (credits)\t6.6\t12.1\t68.7\t78.6\n\t24.8\t46.0\t257.1\t295.0\nOther investments\t.1\t2.5\t3.4\t3.6\nLess: Deferred income taxes (credits)\t0\t.6\t.7\t.8\n\t0\t1.9\t2.7\t2.8\nNet changes in unrealized investment gains (losses)\t\t\t\t\nnet of tax\t24.9\t48.0\t259.8\t297.8\n", "q10k_tbl_16": "\tNine Months Ended\t\n\tSeptember 30\t\n\t2020\t2019\nGross reserves at beginning of period\t9929.5\t9471.2\nLess: reinsurance losses recoverable\t3249.7\t3006.3\nNet reserves at beginning of period:\t\t\nGeneral Insurance\t6021.3\t5766.1\nTitle Insurance\t530.9\t533.4\nRFIG Run-off\t118.9\t154.5\nOther\t8.4\t10.8\nSub-total\t6679.7\t6464.9\nIncurred claims and claim adjustment expenses:\t\t\nProvisions for insured events of the current year:\t\t\nGeneral Insurance\t1787.9\t1815.9\nTitle Insurance\t80.8\t71.3\nRFIG Run-off (a)\t36.2\t29.9\nOther\t8.3\t10.9\nSub-total\t1913.4\t1928.1\nChange in provision for insured events of prior years:\t\t\nGeneral Insurance\t(11.6)\t(11.1)\nTitle Insurance\t(19.6)\t(18.0)\nRFIG Run-off (a)\t(7.8)\t(6.4)\nOther\t(2.3)\t(3.2)\nSub-total\t(41.4)\t(38.7)\nTotal incurred claims and claim adjustment expenses (a)\t1871.9\t1889.3\nPayments:\t\t\nClaims and claim adjustment expenses attributable to\t\t\ninsured events of the current year:\t\t\nGeneral Insurance\t505.9\t562.2\nTitle Insurance\t1.9\t2.2\nRFIG Run-off\t.6\t2.0\nOther\t4.8\t7.2\nSub-total\t513.4\t573.8\nClaims and claim adjustment expenses attributable to\t\t\ninsured events of prior years:\t\t\nGeneral Insurance\t968.3\t1068.4\nTitle Insurance\t35.5\t49.8\nRFIG Run-off\t23.9\t51.3\nOther\t1.9\t2.9\nSub-total\t1029.8\t1172.5\nTotal payments\t1543.2\t1746.3\nAmount of reserves for unpaid claims and claim adjustment expenses\t\t\nat the end of each period net of reinsurance losses recoverable:\t\t\nGeneral Insurance\t6323.4\t5940.1\nTitle Insurance\t554.5\t534.6\nRFIG Run-off\t122.7\t124.6\nOther\t7.7\t8.3\nSub-total\t7008.4\t6607.8\nReinsurance losses recoverable\t3548.6\t3209.5\nGross reserves at end of period\t10557.1\t9817.4\n", "q10k_tbl_17": "\tQuarters Ended\t\tNine Months Ended\t\n\tSeptember 30\t\tSeptember 30\t\n\t2020\t2019\t2020\t2019\nGeneral Insurance (a):\t\t\t\t\nNet premiums earned\t861.9\t870.2\t2532.8\t2551.9\nNet investment income and other income\t117.3\t121.4\t362.1\t362.8\nTotal revenues excluding investment gains (losses)\t979.3\t991.7\t2895.0\t2914.7\nSegment pretax operating income (loss) (b)\t109.7\t90.7\t305.1\t285.8\nIncome tax expense (credits) on above\t20.5\t17.2\t56.9\t54.2\nTitle Insurance:\t\t\t\t\nNet premiums earned\t620.2\t535.5\t1648.7\t1408.4\nTitle escrow and other fees\t168.9\t138.2\t418.9\t363.8\nSub-total\t789.1\t673.8\t2067.7\t1772.3\nNet investment income and other income\t10.5\t10.4\t32.1\t31.3\nTotal revenues excluding investment gains (losses)\t799.6\t684.3\t2099.8\t1803.7\nSegment pretax operating income (loss) (b)\t103.1\t72.8\t211.9\t153.7\nIncome tax expense (credits) on above\t21.5\t15.9\t44.4\t33.0\nRFIG Run-off Business (a):\t\t\t\t\nNet premiums earned\t10.8\t14.2\t35.1\t45.8\nNet investment income and other income\t3.4\t4.2\t11.8\t13.2\nTotal revenues excluding investment gains (losses)\t14.3\t18.5\t46.9\t59.1\nSegment pretax operating income (loss)\t4.5\t7.3\t8.0\t23.9\nIncome tax expense (credits) on above\t.8\t1.4\t1.2\t4.6\n", "q10k_tbl_18": "Consolidated Revenues:\t\t\t\t\nTotal revenues of Company segments\t1793.3\t1694.6\t5041.8\t4777.6\nOther sources (c)\t36.4\t43.0\t112.6\t131.1\nConsolidated investment gains (losses):\t\t\t\t\nRealized from actual transactions and impairments\t1.4\t6.3\t12.7\t29.3\nUnrealized from changes in fair value of equity securities\t79.2\t57.3\t(529.4)\t439.3\nTotal realized and unrealized investment gains (losses)\t80.7\t63.6\t(516.7)\t468.7\nConsolidation elimination adjustments\t(26.7)\t(30.3)\t(81.7)\t(93.0)\nConsolidated revenues\t1883.8\t1771.0\t4556.0\t5284.4\nConsolidated Pretax Income (Loss):\t\t\t\t\nTotal segment pretax operating income (loss) of\t\t\t\t\nCompany segments\t217.4\t170.9\t525.0\t463.4\nOther sources - net (c)\t8.7\t17.7\t27.8\t44.2\nConsolidated investment gains (losses):\t\t\t\t\nRealized from actual transactions and impairments\t1.4\t6.3\t12.7\t29.3\nUnrealized from changes in fair value of equity securities\t79.2\t57.3\t(529.4)\t439.3\nTotal realized and unrealized investment gains (losses)\t80.7\t63.6\t(516.7)\t468.7\nConsolidated income (loss) before income\t\t\t\t\ntaxes (credits)\t306.9\t252.4\t36.1\t976.3\n", "q10k_tbl_19": "\tQuarters Ended\t\tNine Months Ended\t\n\tSeptember 30\t\tSeptember 30\t\n\t2020\t2019\t2020\t2019\nConsolidated Income Tax Expense (Credits):\t\t\t\t\nTotal income tax expense (credits)\t\t\t\t\nof Company segments\t42.9\t34.7\t102.7\t91.9\nOther sources - net (c)\t.9\t1.3\t3.2\t5.0\nIncome tax expense (credits) on consolidated realized\t\t\t\t\nand unrealized investment gains (losses)\t16.9\t13.5\t(108.7)\t98.7\nConsolidated income tax expense (credits)\t60.9\t49.5\t(2.7)\t195.6\n", "q10k_tbl_20": "\tSeptember 30\tDecember 31\n\t2020\t2019\nConsolidated Assets:\t\t\nGeneral Insurance\t18963.3\t17870.0\nTitle Insurance\t1780.9\t1695.0\nRFIG Run-off Business\t565.0\t615.1\nTotal assets for the above company segments\t21309.4\t20180.2\nOther assets (c)\t1150.9\t1095.4\nConsolidation elimination adjustments\t(211.7)\t(199.3)\nConsolidated assets\t22248.7\t21076.3\n", "q10k_tbl_21": "\tSeptember 30 2020\t\tDecember 31 2019\t\n\tCarrying Amount\tFair Value\tCarrying Amount\tFair Value\n4.875% Senior Notes issued in 2014 and due 2024\t397.7\t454.4\t397.3\t439.5\n3.875% Senior Notes issued in 2016 and due 2026\t546.7\t625.1\t546.2\t580.0\nOther miscellaneous debt\t21.7\t21.7\t30.4\t30.4\nTotal debt\t966.2\t1101.3\t974.0\t1050.0\n", "q10k_tbl_22": "\tCarrying\tFair\t\t\t\n\tValue\tValue\tLevel 1\tLevel 2\tLevel 3\nFinancial Liabilities:\t\t\t\t\t\nDebt:\t\t\t\t\t\nSeptember 30 2020\t966.2\t1101.3\t0\t1079.6\t21.7\nDecember 31 2019\t974.0\t1050.0\t0\t1019.5\t30.4\n", "q10k_tbl_23": "Old Republic International Corporation reported the following consolidated results:\t\t\t\t\t\t\nOVERALL RESULTS\t\t\t\t\t\t\n\tQuarters Ended September 30\t\t\tNine Months Ended September 30\t\t\n\t2020\t2019\t% Change\t2020\t2019\t% Change\nPretax income (loss)\t306.9\t252.4\t\t36.1\t976.3\t\nPretax investment gains (losses)\t80.7\t63.6\t\t(516.7)\t468.7\t\nPretax income (loss) excluding investment gains (losses)\t226.2\t188.7\t19.9%\t552.8\t507.6\t8.9%\nNet income (loss)\t246.0\t202.8\t\t38.9\t780.6\t\nNet of tax investment gains (losses)\t63.7\t50.1\t\t(408.0)\t369.9\t\nNet income (loss) excluding investment gains (losses)\t182.3\t152.7\t19.4%\t446.9\t410.6\t8.8%\nPER DILUTED SHARE\t\t\t\t\t\t\n\tQuarters Ended September 30\t\t\tNine Months Ended September 30\t\t\n\t2020\t2019\t% Change\t2020\t2019\t% Change\nNet income (loss)\t.83\t.67\t\t.13\t2.59\t\nNet of tax investment gains (losses)\t.21\t.16\t\t(1.37)\t1.23\t\nNet income (loss) excluding investment gains (losses)\t.62\t.51\t21.6%\t1.50\t1.36\t10.3%\nSHAREHOLDERS' EQUITY\t\t\t\t\t\t\n\t\t\t\tSept. 30\tDec. 31\t\n\t\t\t\t2020\t2019\t% Change\nShareholders' equity: Total\t\t\t\t6074.6\t6000.1\t1.2%\nPer Common Share\t\t\t\t20.39\t19.98\t2.1%\n", "q10k_tbl_24": "FINANCIAL HIGHLIGHTS\t\t\t\t\t\t\n\tQuarters Ended September 30\t\t\tNine Months Ended September 30\t\t\nSUMMARY INCOME STATEMENTS:\t2020\t2019\t% Change\t2020\t2019\t% Change\nRevenues:\t\t\t\t\t\t\nNet premiums and fees earned\t1664.9\t1561.7\t6.6%\t4644.8\t4380.4\t6.0%\nNet investment income\t106.4\t112.7\t-5.6\t329.3\t337.8\t-2.5\nOther income\t31.7\t32.9\t-3.6\t98.5\t97.4\t1.1\nTotal operating revenues\t1803.0\t1707.3\t5.6\t5072.7\t4815.7\t5.3\nInvestment gains (losses):\t\t\t\t\t\t\nRealized from actual transactions\t1.4\t6.3\t\t12.7\t31.3\t\nRealized from impairments\t0\t0\t\t0\t(2.0)\t\nUnrealized from changes in fair value of equity securities\t79.2\t57.3\t\t(529.4)\t439.3\t\nTotal investment gains (losses)\t80.7\t63.6\t\t(516.7)\t468.7\t\nTotal revenues\t1883.8\t1771.0\t\t4556.0\t5284.4\t\nOperating expenses:\t\t\t\t\t\t\nClaim costs\t638.1\t663.7\t-3.9\t1884.8\t1905.1\t-1.1\nSales and general expenses\t929.1\t845.0\t10.0\t2603.0\t2372.0\t9.7\nInterest and other charges\t9.5\t9.7\t-2.5\t31.8\t30.8\t3.4\nTotal operating expenses\t1576.8\t1518.6\t3.8%\t4519.8\t4308.0\t4.9%\nPretax income (loss)\t306.9\t252.4\t\t36.1\t976.3\t\nIncome taxes (credits)\t60.9\t49.5\t\t(2.7)\t195.6\t\nNet income (loss)\t246.0\t202.8\t\t38.9\t780.6\t\nCOMMON STOCK STATISTICS:\t\t\t\t\t\t\nComponents of net income (loss) per share:\t\t\t\t\t\t\nBasic net income (loss) excluding investment gains (losses)\t0.62\t0.51\t21.6%\t1.50\t1.37\t9.5%\nNet investment gains (losses):\t\t\t\t\t\t\nRealized from actual transactions and impairments\t0\t0.02\t\t0.03\t0.08\t\nUnrealized from changes in fair value of equity securities\t0.21\t0.15\t\t(1.40)\t1.15\t\nBasic net income (loss)\t0.83\t0.68\t\t0.13\t2.60\t\nDiluted net income (loss) excluding investment gains (losses)\t0.62\t0.51\t21.6%\t1.50\t1.36\t10.3%\nNet investment gains (losses):\t\t\t\t\t\t\nRealized from actual transactions and impairments\t0\t0.01\t\t0.03\t0.08\t\nUnrealized from changes in fair value of equity securities\t0.21\t0.15\t\t(1.40)\t1.15\t\nDiluted net income (loss)\t0.83\t0.67\t\t0.13\t2.59\t\nCash dividends on common stock\t0.21\t1.20\t\t0.63\t1.60\t\nBook value per share\t\t\t\t20.39\t19.31\t5.6%\n", "q10k_tbl_25": "\tMajor Segmented and Consolidated Elements of Income (Loss)\t\t\t\t\t\n\tQuarters Ended September 30\t\t\tNine Months Ended September 30\t\t\n\t2020\t2019\t% Change\t2020\t2019\t% Change\nA. Net premiums fees and other income:\t\t\t\t\t\t\nGeneral insurance\t861.9\t870.2\t-1.0%\t2532.8\t2551.9\t-0.7%\nTitle insurance\t789.1\t673.8\t17.1\t2067.7\t1772.3\t16.7\nCorporate and other\t2.9\t3.3\t-11.8\t9.0\t10.2\t-11.5\nOther income\t31.7\t32.9\t-3.6\t98.5\t97.4\t1.1\nSubtotal\t1685.8\t1580.3\t6.7\t4708.2\t4431.9\t6.2\nRFIG run-off business (c)\t10.8\t14.2\t-24.0\t35.1\t45.8\t-23.4\nConsolidated\t1696.6\t1594.6\t6.4%\t4743.3\t4477.8\t5.9%\nB. Underwriting and related\t\t\t\t\t\t\nservices income (loss):\t\t\t\t\t\t\nGeneral insurance\t38.7\t19.7\t96.1%\t89.5\t74.6\t20.0%\nTitle insurance\t93.2\t63.3\t47.2\t182.3\t126.1\t44.5\nCorporate and other\t(3.7)\t(0.3)\tN/M\t(12.6)\t(10.9)\t-16.4\nSubtotal\t128.2\t82.7\t54.9\t259.2\t189.9\t36.5\nRFIG run-off business (c)\t1.1\t3.0\t-62.8\t(3.7)\t10.7\t-135.2\nConsolidated\t129.3\t85.7\t50.8%\t255.4\t200.6\t27.3%\nC. Consolidated underwriting ratio:\t\t\t\t\t\t\nClaim ratio\t38.3%\t42.5%\t\t40.6%\t43.5%\t\nExpense ratio\t53.7\t51.9\t\t53.6\t51.7\t\nCombined ratio\t92.0%\t94.4%\t\t94.2%\t95.2%\t\nD. Net investment income:\t\t\t\t\t\t\nGeneral insurance\t85.9\t88.7\t-3.2%\t264.2\t265.8\t-0.6%\nTitle insurance\t10.2\t10.2\t-0.6\t31.4\t30.8\t1.8\nCorporate and other\t6.8\t9.4\t-27.6\t21.8\t27.9\t-21.8\nSubtotal\t102.9\t108.4\t-5.0\t317.5\t324.6\t-2.2\nRFIG run-off business\t3.4\t4.2\t-19.2\t11.8\t13.2\t-10.8\nConsolidated\t106.4\t112.7\t-5.6%\t329.3\t337.8\t-2.5%\nE. Interest and other charges (credits):\t\t\t\t\t\t\nGeneral insurance\t14.8\t17.7\t\t48.7\t54.6\t\nTitle insurance\t0.3\t0.7\t\t1.8\t3.3\t\nCorporate and other (a)\t(5.7)\t(8.7)\t\t(18.7)\t(27.1)\t\nSubtotal\t9.5\t9.7\t\t31.8\t30.8\t\nRFIG run-off business\t0\t0\t\t0\t0\t\nConsolidated\t9.5\t9.7\t-2.5%\t31.8\t30.8\t3.4%\nF. Segmented and consolidated\t\t\t\t\t\t\npretax income (loss) excluding\t\t\t\t\t\t\ninvestment gains (losses)(B+D-E):\t\t\t\t\t\t\nGeneral insurance\t109.7\t90.7\t20.9%\t305.1\t285.8\t6.8%\nTitle insurance\t103.1\t72.8\t41.5\t211.9\t153.7\t37.9\nCorporate and other\t8.7\t17.7\t-50.6\t27.8\t44.2\t-37.0\nSubtotal\t221.6\t181.4\t22.2\t544.8\t483.7\t12.6\nRFIG run-off business (c)\t4.5\t7.3\t-37.3\t8.0\t23.9\t-66.4\nConsolidated\t226.2\t188.7\t19.9%\t552.8\t507.6\t8.9%\nIncome taxes (credits) on above (b)\t43.9\t36.0\t\t105.9\t96.9\t\nG. Net income (loss) excluding\t\t\t\t\t\t\ninvestment gains (losses)\t182.3\t152.7\t19.4%\t446.9\t410.6\t8.8%\nH. Consolidated pretax investment\t\t\t\t\t\t\ngains (losses):\t\t\t\t\t\t\nRealized from actual transactions\t\t\t\t\t\t\nand impairments\t1.4\t6.3\t\t12.7\t29.3\t\nUnrealized from changes in\t\t\t\t\t\t\nfair value of equity securities\t79.2\t57.3\t\t(529.4)\t439.3\t\nTotal\t80.7\t63.6\t\t(516.7)\t468.7\t\nIncome taxes (credits) on above\t16.9\t13.5\t\t(108.7)\t98.7\t\nNet of tax investment gains (losses)\t63.7\t50.1\t\t(408.0)\t369.9\t\nI. Net income (loss)\t246.0\t202.8\t\t38.9\t780.6\t\nJ. Consolidated operating cash flow\t370.6\t352.7\t\t808.9\t666.2\t\n", "q10k_tbl_26": "\tGeneral Insurance Summary Operating Results\t\t\t\t\t\n\tQuarters Ended September 30\t\t\tNine Months Ended September 30\t\t\n\t2020\t2019\t% Change\t2020\t2019\t% Change\nNet premiums written\t932.5\t921.0\t1.2%\t2586.0\t2637.2\t-1.9%\nNet premiums earned\t861.9\t870.2\t-1.0\t2532.8\t2551.9\t-0.7\nNet investment income\t85.9\t88.7\t-3.2\t264.2\t265.8\t-0.6\nOther income\t31.4\t32.7\t-3.9\t97.8\t97.0\t0.9\nOperating revenues\t979.3\t991.7\t-1.2\t2895.0\t2914.7\t-0.7\nClaim costs\t607.5\t634.8\t-4.3\t1790.4\t1821.9\t-1.7\nSales and general expenses\t247.2\t248.4\t-0.5\t750.7\t752.2\t-0.2\nInterest and other charges\t14.8\t17.7\t-16.0\t48.7\t54.6\t-10.8\nOperating expenses\t869.5\t900.9\t-3.5\t2589.9\t2628.9\t-1.5\nSegment pretax operating income (loss)\t109.7\t90.7\t20.9%\t305.1\t285.8\t6.8%\nClaim ratio\t70.5%\t72.9%\t\t70.7%\t71.4%\t\nExpense ratio\t25.0\t24.8\t\t25.8\t25.7\t\nCombined ratio\t95.5%\t97.7%\t\t96.5%\t97.1%\t\n", "q10k_tbl_27": "\t\t\tEffect of Prior Periods'\t\t\t\n\t\t\t(Favorable)/\t\tClaim Ratio Excluding\t\n\tReported\t\tUnfavorable Claim\t\tPrior Periods' Claim\t\n\tClaim Ratio\t\tReserves Development\t\tReserves Development\t\n2015\t\t74.1%\t\t1.5%\t\t72.6%\n2016\t\t73.0\t\t0.3\t\t72.7\n2017\t\t71.8\t\t0.7\t\t71.1\n2018\t\t72.2\t\t0\t\t72.2\n2019\t\t71.8%\t\t0.4%\t\t71.4%\n3rd Quarter 2019\t\t72.9%\t\t(0.5)%\t\t73.4%\n3rd Quarter 2020\t\t70.5%\t\t(0.8)%\t\t71.3%\n1st Nine Months 2019\t\t71.4%\t\t(0.4)%\t\t71.8%\n1st Nine Months 2020\t\t70.7%\t\t(0.5)%\t\t71.2%\n", "q10k_tbl_28": "\tTitle Insurance Summary Operating Results\t\t\t\t\t\n\tQuarters Ended September 30\t\t\tNine Months Ended September 30\t\t\n\t2020\t2019\t% Change\t2020\t2019\t% Change\nNet premiums and fees earned\t789.1\t673.8\t17.1%\t2067.7\t1772.3\t16.7%\nNet investment income\t10.2\t10.2\t-0.6\t31.4\t30.8\t1.8\nOther income\t0.3\t0.1\t56.6\t0.6\t0.5\t34.1\nOperating revenues\t799.6\t684.3\t16.9\t2099.8\t1803.7\t16.4\nClaim costs\t21.7\t20.7\t5.0\t61.1\t53.3\t14.5\nSales and general expenses\t674.3\t589.9\t14.3\t1825.0\t1593.3\t14.5\nInterest and other charges\t0.3\t0.7\t-52.5\t1.8\t3.3\t-44.8\nOperating expenses\t696.5\t611.4\t13.9\t1887.9\t1650.0\t14.4\nSegment pretax operating income (loss)\t103.1\t72.8\t41.5%\t211.9\t153.7\t37.9%\nClaim ratio\t2.8%\t3.1%\t\t3.0%\t3.0%\t\nExpense ratio\t85.4\t87.5\t\t88.2\t89.9\t\nCombined ratio\t88.2%\t90.6%\t\t91.2%\t92.9%\t\n", "q10k_tbl_29": "\t\t\tEffect of Prior Periods'\t\t\t\n\t\t\t(Favorable)/\t\tClaim Ratio Excluding\t\n\tReported\t\tUnfavorable Claim\t\tPrior Periods' Claim\t\n\tClaim Ratio\t\tReserves Development\t\tReserves Development\t\n2015\t\t4.9%\t\t(0.6)%\t\t5.5%\n2016\t\t3.8\t\t(1.1)\t\t4.9\n2017\t\t0.9\t\t(3.3)\t\t4.2\n2018\t\t2.1\t\t(2.0)\t\t4.1\n2019\t\t2.7%\t\t(1.3)%\t\t4.0%\n3rd Quarter 2019\t\t3.1%\t\t(1.0)%\t\t4.1%\n3rd Quarter 2020\t\t2.8%\t\t(1.1)%\t\t3.9%\n1st Nine Months 2019\t\t3.0%\t\t(1.0)%\t\t4.0%\n1st Nine Months 2020\t\t3.0%\t\t(0.9)%\t\t3.9%\n", "q10k_tbl_30": "\tRFIG Run-off Summary Operating Results (a)\t\t\t\t\t\n\tQuarters Ended September 30\t\t\tNine Months Ended September 30\t\t\n\t2020\t2019\t% Change\t2020\t2019\t% Change\nA. Mortgage Insurance (MI)\t\t\t\t\t\t\nNet premiums earned\t10.8\t14.2\t-24.0%\t35.1\t45.5\t-22.7%\nNet investment income\t3.4\t4.2\t-19.2\t11.8\t12.9\t-9.0\nClaim costs\t6.7\t7.6\t-11.5\t28.4\t24.1\t17.8\nMI pretax operating income (loss)\t4.5\t7.3\t-37.3%\t8.0\t22.8\t-64.9%\nClaim ratio\t62.4%\t53.6%\t\t80.8%\t53.0%\t\nExpense ratio\t27.2\t25.1\t\t29.9\t25.2\t\nCombined ratio\t89.6%\t78.7%\t\t110.7%\t78.2%\t\nB. Consumer Credit Indemnity (CCI) (a)\t\t\t\t\t\t\nCCI pretax operating income (loss)\t\t\t\t0\t1.0\t\nC. Total MI and CCI Run-off business (a)\t\t\t\t\t\t\nSegment pretax operating income (loss)\t4.5\t7.3\t-37.3%\t8.0\t23.9\t-66.4%\n", "q10k_tbl_31": "\t\t\tEffect of Prior Periods'\t\t\t\n\t\t\t(Favorable)/\t\tClaim Ratio Excluding\t\n\tReported\t\tUnfavorable Claim\t\tPrior Periods' Claim\t\n\tClaim Ratio\t\tReserves Development\t\tReserves Development\t\n2015\t\t56.4%\t\t(65.0)%\t\t121.4%\n2016\t\t34.1\t\t(39.8)\t\t73.9\n2017\t\t57.6\t\t(38.3)\t\t95.9\n2018\t\t43.2\t\t(27.0)\t\t70.2\n2019\t\t55.0%\t\t(12.5)%\t\t67.5%\n3rd Quarter 2019\t\t53.6%\t\t(14.2)%\t\t67.8%\n3rd Quarter 2020\t\t62.4%\t\t(77.8)%\t\t140.2%\n1st Nine Months 2019\t\t53.0%\t\t(9.6)%\t\t62.6%\n1st Nine Months 2020\t\t80.8%\t\t(22.3)%\t\t103.1%\n", "q10k_tbl_32": "\tCorporate and Other Summary Operating Results\t\t\t\t\t\n\tQuarters Ended September 30\t\t\tNine Months Ended September 30\t\t\n\t2020\t2019\t% Change\t2020\t2019\t% Change\nNet life and accident premiums earned\t2.9\t3.3\t-11.8%\t9.0\t10.2\t-11.5%\nNet investment income\t6.8\t9.4\t-27.6\t21.8\t27.9\t-21.8\nOther operating income\t0\t0\t0\t0\t0\t0\nOperating revenues\t9.7\t12.7\t-23.5\t30.8\t38.1\t-19.1\nClaim costs\t2.0\t0.5\tN/M\t4.9\t6.3\t-22.1\nInsurance expenses\t0.9\t0.9\t-0.7\t3.3\t3.5\t-4.8\nCorporate interest and other expenses - net\t(2.0)\t(6.5)\t68.2\t(5.2)\t(15.9)\t66.9\nOperating expenses\t0.9\t(5.0)\t118.9\t3.0\t(6.1)\t149.0\nCorporate and other pretax operating income (loss)\t8.7\t17.7\t-50.6%\t27.8\t44.2\t-37.0%\n", "q10k_tbl_33": "\tSeptember 30\tDecember 31\tSeptember 30\n\t2020\t2019\t2019\nAssets:\t\t\t\nCash and fixed maturity securities\t11049.8\t10381.5\t10291.4\nEquity securities\t3682.9\t4030.5\t3770.6\nOther invested assets\t113.3\t115.4\t117.7\nCash and invested assets\t14846.0\t14527.4\t14179.7\nAccounts and premiums receivable\t1734.0\t1466.7\t1687.5\nFederal income tax recoverable: Current\t0\t5.7\t0.5\nPrepaid federal income taxes\t0\t0\t138.5\nReinsurance balances recoverable\t4359.8\t3823.9\t3923.7\nDeferred policy acquisition costs\t328.8\t325.4\t333.0\nSundry assets\t979.9\t927.0\t918.6\nTotal assets\t22248.7\t21076.3\t21181.8\nLiabilities and Shareholders' Equity:\t\t\t\nPolicy liabilities\t2689.9\t2419.2\t2602.0\nClaim reserves\t10557.1\t9929.5\t9817.4\nFederal income tax payable: Current\t9.4\t0\t0\nDeferred\t66.4\t112.2\t171.3\nReinsurance balances and funds\t852.1\t616.0\t759.9\nDebt\t966.2\t974.0\t973.7\nSundry liabilities\t1032.8\t1025.1\t1063.3\nTotal liabilities\t16174.0\t15076.1\t15387.9\nShareholders' equity\t6074.6\t6000.1\t5793.9\nTotal liabilities and shareholders' equity\t22248.7\t21076.3\t21181.8\n", "q10k_tbl_34": "\t\t\t\tCash Invested Assets and Shareholders' Equity\t\t\t\t\n\t\t\t\t\t\t\t% Change\t\n\t\t\t\tSept. 30\tDec. 31\tSept. 30\tSept. '20/\tSept. '20/\n\t\t\t\t2020\t2019\t2019\tDec. '19\tSept. '19\nCash and invested assets:\t\t\t\t\t\t\t\t\n\tFixed maturity securities cash and other invested assets\t\t\t11163.1\t10496.9\t10409.1\t6.3%\t7.2%\n\tEquity securities\t\t\t3682.9\t4030.5\t3770.6\t-8.6\t-2.3\n\tTotal per balance sheet\t\t\t14846.0\t14527.4\t14179.7\t2.2%\t4.7%\n\tTotal at cost for all\t\t\t13849.1\t13327.2\t13126.2\t3.9%\t5.5%\nComposition of shareholders' equity per share:\t\t\t\t\t\t\t\t\n\tEquity before items below\t\t\t18.17\t17.25\t16.95\t5.3%\t7.2%\n\tUnrealized investment gains (losses) and other\t\t\t\t\t\t\t\n\t\taccumulated comprehensive income (loss)\t\t2.22\t2.73\t2.36\t\t\n\t\t\tTotal\t20.39\t19.98\t19.31\t2.1%\t5.6%\nSegmented composition of\t\t\t\t\t\t\t\t\nshareholders' equity per share:\t\t\t\t\t\t\t\t\n\tExcluding RFIG run-off segment\t\t\t18.93\t18.37\t17.70\t3.0%\t6.9%\n\tRFIG run-off segment\t\t\t1.46\t1.61\t1.61\t\t\n\t\t\tConsolidated total\t20.39\t19.98\t19.31\t2.1%\t5.6%\n", "q10k_tbl_35": "\tShareholders' Equity Per Share\t\t\t\n\tQuarter\t\t\tYear\n\tEnded\tNine Months Ended\t\tEnded\n\tSept. 30\tSeptember 30\t\tDec. 31\n\t2020\t2020\t2019\t2019\nBeginning balance\t19.68\t19.98\t17.23\t17.23\nChanges in shareholders' equity:\t\t\t\t\nNet income (loss) excluding net investment gains (losses)\t0.62\t1.50\t1.37\t1.85\nNet of tax realized investment gains (losses)\t0\t0.03\t0.08\t0.10\nNet of tax unrealized investment gains (losses) on\t\t\t\t\nsecurities carried at fair value\t0.30\t(0.53)\t2.14\t2.53\nTotal net of tax realized and unrealized\t\t\t\t\ninvestment gains (losses)\t0.30\t(0.50)\t2.22\t2.63\nCash dividends\t(0.21)\t(0.63)\t(1.60)\t(1.80)\nOther\t0\t0.04\t0.09\t0.07\nNet change\t0.71\t0.41\t2.08\t2.75\nEnding balance\t20.39\t20.39\t19.31\t19.98\nPercentage change for the period\t3.6%\t2.1%\t12.1%\t16.0%\n", "q10k_tbl_36": "\tCapitalization\t\t\n\tSeptember 30\tDecember 31\tSeptember 30\n\t2020\t2019\t2019\nDebt:\t\t\t\n4.875% Senior Notes due 2024\t397.7\t397.3\t397.2\n3.875% Senior Notes due 2026\t546.7\t546.2\t546.1\nOther miscellaneous debt\t21.7\t30.4\t30.4\nTotal debt\t966.2\t974.0\t973.7\nCommon shareholders' equity\t6074.6\t6000.1\t5793.9\nTotal capitalization\t7040.8\t6974.2\t6767.6\nCapitalization ratios:\t\t\t\nDebt\t13.7%\t14.0%\t14.4%\nCommon shareholders' equity\t86.3\t86.0\t85.6\nTotal\t100.0%\t100.0%\t100.0%\n", "q10k_tbl_37": "Gross Unrealized Losses Stratified by Industry Concentration for Non-Investment Grade Fixed Maturity Securities\t\t\t\t\t\nSeptember 30 2020\t\t\tAmortized Cost\t\tGross Unrealized Losses\nFixed Maturity Securities by Industry Concentration:\t\t\t\t\t\n\tEnergy\t\t54.1\t\t6.0\n\tNatural Gas\t\t21.3\t\t1.4\n\t\tTotal\t75.4\t(a)\t7.5\n", "q10k_tbl_38": "Gross Unrealized Losses Stratified by Industry Concentration for Investment Grade Fixed Maturity Securities\t\t\t\t\t\nSeptember 30 2020\t\t\tAmortized Cost\t\tGross Unrealized Losses\nFixed Maturity Securities by Industry Concentration:\t\t\t\t\t\n\tIndustrial\t\t52.8\t\t.5\n\tConsumer Staples\t\t52.2\t\t.5\n\tHealth Care\t\t53.5\t\t.4\n\tEnergy\t\t21.8\t\t.4\n\tOther (includes 13 industry groups)\t\t482.1\t\t2.4\n\t\tTotal\t662.7\t(b)\t4.5\n", "q10k_tbl_39": "Gross Unrealized Losses Stratified by Industry Concentration for Equity Securities\t\t\t\t\t\t\nSeptember 30 2020\t\t\tCost\t\tGross Unrealized Losses\t\nEquity Securities by Industry Concentration:\t\t\t\t\t\t\n\tEnergy\t\t536.8\t\t253.8\t\n\tRetail\t\t73.0\t\t26.1\t\n\tUtilities\t\t200.7\t\t23.8\t\n\tTelecom\t\t108.4\t\t13.3\t\n\tOther (includes 19 industry groups)\t\t496.3\t\t47.3\t\n\t\tTotal\t1415.5\t(c)\t364.4\t(d)\n", "q10k_tbl_40": "Gross Unrealized Losses Stratified by Maturity Ranges for All Fixed Maturity Securities\t\t\t\t\t\n\t\tAmortized Cost of Fixed Maturity Securities\t\tGross Unrealized Losses\t\nSeptember 30 2020\t\tAll\tNon- Investment Grade Only\tAll\tNon- Investment Grade Only\nMaturity Ranges:\t\t\t\t\t\nDue in one year or less\t\t6.4\t1.3\t0\t0\nDue after one year through five years\t\t264.8\t44.1\t4.4\t4.2\nDue after five years through ten years\t\t384.8\t29.9\t6.7\t3.3\nDue after ten years\t\t82.1\t0\t.8\t0\n\tTotal\t738.2\t75.4\t12.1\t7.5\n", "q10k_tbl_41": "Gross Unrealized Losses Stratified by Duration and Amount of Unrealized Losses\t\t\t\t\t\t\t\n\t\t\tAmount of Gross Unrealized Losses\t\t\t\t\nSeptember 30 2020\t\t\tLess than 20% of Cost\t20% to 50% of Cost\tMore than 50% of Cost\tTotal Gross Unrealized Loss\t\nNumber of Months in Unrealized Loss Position:\t\t\t\t\t\t\t\nFixed Maturity Securities:\t\t\t\t\t\t\t\n\tOne to six months\t\t9.6\t.8\t0\t10.5\t\n\tSeven to twelve months\t\t1.5\t0\t0\t1.5\t\n\tMore than twelve months\t\t0\t0\t0\t0\t\n\t\tTotal\t11.2\t.8\t0\t12.1\t\nNumber of Issues in Unrealized Loss Position:\t\t\t\t\t\t\t\nFixed Maturity Securities:\t\t\t\t\t\t\t\n\tOne to six months\t\t91\t1\t0\t92\t\n\tSeven to twelve months\t\t2\t0\t0\t2\t\n\tMore than twelve months\t\t4\t0\t0\t4\t\n\t\tTotal\t97\t1\t0\t98\t(e)\n", "q10k_tbl_42": "Age Distribution of Fixed Maturity Securities\t\t\t\t\n\t\t\tSeptember 30\tDecember 31\n\t\t\t2020\t2019\nMaturity Ranges:\t\t\t\t\n\tDue in one year or less\t\t10.3%\t10.7%\n\tDue after one year through five years\t\t56.6\t55.6\n\tDue after five years through ten years\t\t31.6\t33.4\n\tDue after ten years\t\t1.5\t.3\n\t\tTotal\t100.0%\t100.0%\nAverage Maturity in Years\t\t\t4.2\t4.1\nDuration (f)\t\t\t3.8\t3.7\n", "q10k_tbl_43": "Composition of Unrealized Gains (Losses)\t\t\t\t\n\t\t\tSeptember 30\tDecember 31\n\t\t\t2020\t2019\nAvailable for Sale Fixed Maturity Securities:\t\t\t\t\n\tAmortized cost\t\t9620.9\t8537.3\n\tEstimated fair value\t\t10206.6\t8796.5\n\t\tNet unrealized gains (losses)\t585.7\t259.1\n\tComponents of net unrealized gains (losses):\t\t\t\n\tGross unrealized gains\t\t597.8\t262.5\n\tGross unrealized losses\t\t(12.1)\t(3.3)\n\t\tNet unrealized gains (losses)\t585.7\t259.1\nEquity Securities:\t\t\t\t\n\tCost\t\t3271.0\t3089.1\n\tEstimated fair value\t\t3682.9\t4030.5\n\t\tNet unrealized gains (losses)(g)\t411.8\t941.3\n\tComponents of net unrealized gains (losses):\t\t\t\n\tGross unrealized gains\t\t776.3\t968.0\n\tGross unrealized losses\t\t(364.4)\t(26.6)\n\t\tNet unrealized gains (losses)(g)\t411.8\t941.3\n", "q10k_tbl_44": "\tNet Earned Premiums and Fees\t\t\t\t\t\n\tGeneral\tTitle\tRFIG Run-off\tOther\tTotal\t% Change from prior period\nYears Ended December 31:\t\t\t\t\t\t\n2017\t3110.8\t2287.2\t122.9\t18.8\t5539.7\t3.9%\n2018\t3277.1\t2336.1\t75.9\t14.6\t5703.9\t3.0\n2019\t3432.4\t2489.2\t59.2\t13.4\t5994.2\t5.1\nNine Months Ended September 30:\t\t\t\t\t\t\n2019\t2551.9\t1772.3\t45.8\t10.2\t4380.4\t2.9\n2020\t2532.8\t2067.7\t35.1\t9.0\t4644.8\t6.0\nQuarters Ended September 30:\t\t\t\t\t\t\n2019\t870.2\t673.8\t14.2\t3.3\t1561.7\t3.8\n2020\t861.9\t789.1\t10.8\t2.9\t1664.9\t6.6%\n", "q10k_tbl_45": "\tGeneral Insurance Net Earned Premiums by Type of Coverage\t\t\t\t\t\n\tCommercial Automobile (mostly trucking)\tWorkers' Compensation\tInland Marine and Property\tFinancial Indemnity\tGeneral Liability\tOther\nYears Ended December 31:\t\t\t\t\t\t\n2017\t34.6%\t33.6%\t7.6%\t4.9%\t6.3%\t13.0%\n2018\t36.8\t31.1\t7.7\t5.3\t6.2\t12.9\n2019\t37.2\t29.1\t7.6\t6.4\t6.6\t13.1\nNine Months Ended September 30:\t\t\t\t\t\t\n2019\t37.3\t29.1\t7.5\t6.1\t6.6\t13.4\n2020\t37.8\t26.0\t8.3\t7.8\t6.2\t13.9\nQuarters Ended September 30:\t\t\t\t\t\t\n2019\t37.1\t28.3\t7.5\t6.5\t6.5\t14.1\n2020\t37.6%\t25.3%\t9.1%\t7.8%\t5.8%\t14.4%\n", "q10k_tbl_46": "Title Premium and Fee Production by Source\t\t\n\tDirect Operations\tIndependent Title Agents & Other\nYears Ended December 31:\t\t\n2017\t26.9%\t73.1%\n2018\t26.1\t73.9\n2019\t27.4\t72.6\nNine Months Ended September 30:\t\t\n2019\t28.0\t72.0\n2020\t27.6\t72.4\nQuarters Ended September 30:\t\t\n2019\t28.0\t72.0\n2020\t28.6%\t71.4%\n", "q10k_tbl_47": "\tEarned Premiums\t\tPersistency\t\nPremium and Persistency Trends by Type:\tDirect\tNet\tTraditional Primary\tBulk\nYears Ended December 31:\t\t\t\t\n2017\t110.4\t109.8\t77.9%\t78.2%\n2018\t74.4\t74.4\t79.7\t76.3\n2019\t58.8\t58.8\t77.1\t84.5\nNine Months Ended September 30:\t\t\t\t\n2019\t45.5\t45.5\t80.8\t84.8\n2020\t35.1\t35.1\t75.6%\t84.6%\nQuarters Ended September 30:\t\t\t\t\n2019\t14.2\t14.2\t\t\n2020\t10.8\t10.8\t\t\n", "q10k_tbl_48": "Net Risk in Force\t\t\t\t\nNet Risk in Force By Type:\tTraditional Primary\tBulk\tOther\tTotal\nAs of December 31:\t\t\t\t\n2017\t3888.0\t292.4\t12.1\t4192.6\n2018\t3098.3\t235.3\t11.2\t3345.0\n2019\t2388.3\t198.2\t3.6\t2590.1\nAs of September 30:\t\t\t\t\n2019\t2621.3\t208.3\t3.6\t2833.3\n2020\t1985.3\t174.9\t3.6\t2163.9\n", "q10k_tbl_49": "Analysis of Risk in Force\t\t\t\t\nRisk in Force Distribution By FICO Scores:\tFICO less than 620\tFICO 620 to 680\tFICO Greater than 680\tUnscored/ Unavailable\nTraditional Primary:\t\t\t\t\nAs of December 31:\t\t\t\t\n2017\t7.5%\t31.5%\t60.2%\t.8%\n2018\t7.9\t32.2\t59.1\t.8\n2019\t8.5\t33.8\t56.8\t.9\nAs of September 30:\t\t\t\t\n2019\t8.2\t32.8\t58.2\t.8\n2020\t9.0%\t34.6%\t55.5%\t.9%\nBulk(a):\t\t\t\t\nAs of December 31:\t\t\t\t\n2017\t31.8%\t31.7%\t36.3%\t.2%\n2018\t33.6\t31.5\t34.8\t.1\n2019\t34.4\t31.2\t34.2\t.2\nAs of September 30:\t\t\t\t\n2019\t33.8\t31.4\t34.7\t.1\n2020\t35.6%\t31.6%\t32.6%\t.2%\n", "q10k_tbl_50": "Risk in Force Distribution By Loan to Value (\"LTV\") Ratio:\tLTV 85.0% and below\tLTV 85.01% to 90.0%\tLTV 90.01% to 95.0%\tLTV Greater than 95.0%\nTraditional Primary(b):\t\t\t\t\nAs of December 31:\t\t\t\t\n2017\t4.0%\t30.9%\t30.5%\t34.6%\n2018\t4.1\t30.7\t29.7\t35.5\n2019\t4.1\t30.7\t28.4\t36.8\nAs of September 30:\t\t\t\t\n2019\t4.2\t30.9\t28.8\t36.1\n2020\t4.1%\t31.2%\t28.0%\t36.7%\nBulk(a):\t\t\t\t\nAs of December 31:\t\t\t\t\n2017\t45.3%\t29.9%\t12.6%\t12.2%\n2018\t43.4\t30.9\t13.1\t12.6\n2019\t42.7\t31.4\t13.7\t12.2\nAs of September 30:\t\t\t\t\n2019\t43.0\t31.2\t13.2\t12.6\n2020\t42.9%\t31.8%\t13.7%\t11.6%\n", "q10k_tbl_51": "\t\tTraditional Primary\t\t\t\t\t\t\t\t\n\tTX\tFL\tGA\tIL\tCA\tNJ\tPA\tNY\tVA\tMD\nAs of December 31:\t\t\t\t\t\t\t\t\t\t\n2017\t5.9%\t8.1%\t6.0%\t6.1%\t4.8%\t4.6%\t4.3%\t3.1%\t3.7%\t4.2%\n2018\t5.5\t8.5\t6.0\t6.4\t4.9\t4.8\t4.3\t3.2\t3.8\t4.6\n2019\t4.8\t9.0\t6.1\t6.9\t5.1\t5.2\t4.2\t3.4\t3.9\t5.1\nAs of September 30:\t\t\t\t\t\t\t\t\t\t\n2019\t5.2\t8.7\t6.1\t6.7\t5.0\t5.0\t4.2\t3.3\t3.9\t4.8\n2020\t4.5%\t9.3%\t6.0%\t7.1%\t5.2%\t5.5%\t4.1%\t3.8%\t3.9%\t5.3%\n", "q10k_tbl_52": "\t\tBulk (a)\t\t\t\t\t\t\t\t\n\tTX\tFL\tGA\tIL\tCA\tNC\tPA\tNY\tOH\tMD\nAs of December 31:\t\t\t\t\t\t\t\t\t\t\n2017\t5.4%\t8.3%\t5.1%\t4.4%\t12.4%\t2.5%\t3.8%\t7.8%\t4.4%\t2.7%\n2018\t5.6\t8.2\t5.4\t4.6\t12.4\t2.7\t4.0\t7.1\t4.7\t2.8\n2019\t5.5\t8.1\t5.6\t4.7\t12.7\t2.7\t3.8\t7.1\t4.9\t3.0\nAs of September 30:\t\t\t\t\t\t\t\t\t\t\n2019\t5.5\t8.0\t5.6\t4.7\t12.5\t2.7\t3.7\t7.4\t4.9\t2.9\n2020\t5.6%\t8.2%\t5.7%\t4.8%\t12.7%\t2.8%\t4.0%\t7.2%\t5.0%\t2.9%\n", "q10k_tbl_53": "Risk in Force Distribution By Level of Documentation:\tFull Documentation\tReduced Documentation\nTraditional Primary:\t\t\nAs of December 31:\t\t\n2017\t92.3%\t7.7%\n2018\t92.2\t7.8\n2019\t91.8\t8.2\nAs of September 30:\t\t\n2019\t92.1\t7.9\n2020\t91.5%\t8.5%\nBulk (a):\t\t\nAs of December 31:\t\t\n2017\t69.4%\t30.6%\n2018\t71.8\t28.2\n2019\t72.6\t27.4\nAs of September 30:\t\t\n2019\t71.9\t28.1\n2020\t72.9%\t27.1%\n", "q10k_tbl_54": "Risk in Force Distribution By Loan Type:\tFixed Rate & ARMs with Resets >=5 Years\tARMs with Resets <5 years\nTraditional Primary:\t\t\nAs of December 31:\t\t\n2017\t97.2%\t2.8%\n2018\t97.2\t2.8\n2019\t97.1\t2.9\nAs of September 30:\t\t\n2019\t97.1\t2.9\n2020\t97.0%\t3.0%\nBulk (a):\t\t\nAs of December 31:\t\t\n2017\t70.1%\t29.9%\n2018\t68.6\t31.4\n2019\t68.0\t32.0\nAs of September 30:\t\t\n2019\t68.1\t31.9\n2020\t67.1%\t32.9%\n", "q10k_tbl_55": "\tInvested Assets at Cost\t\t\t\t\tFair Value Adjust- ment\tInvested Assets at Fair Value (a)\n\tGeneral\tTitle\tRFIG Run-off\tCorporate and Other\tTotal\nAs of December 31:\t\t\t\t\t\t\t\n2018\t10162.3\t1105.6\t583.6\t904.3\t12755.9\t238.6\t12994.6\n2019\t10577.9\t1172.3\t566.3\t841.7\t13158.4\t1200.7\t14359.2\nAs of September 30:\t\t\t\t\t\t\t\n2019\t10493.0\t1137.9\t519.5\t770.7\t12921.2\t1054.1\t13975.4\n2020\t10888.4\t1233.5\t536.9\t1005.8\t13664.7\t998.2\t14662.9\n", "q10k_tbl_56": "\tNet Investment Income\t\t\t\t\tYield at\t\n\tGeneral\tTitle\tRFIG Run-off\tCorporate and Other\tTotal\tCost\tFair Value\nYears Ended\t\t\t\t\t\t\t\nDecember 31:\t\t\t\t\t\t\t\n2017\t318.9\t37.3\t21.7\t31.4\t409.4\t3.32%\t3.14%\n2018\t341.0\t38.8\t20.1\t31.7\t431.8\t3.41\t3.28\n2019\t356.4\t41.4\t17.6\t35.1\t450.7\t3.48\t3.30\nNine Months Ended\t\t\t\t\t\t\t\nSeptember 30:\t\t\t\t\t\t\t\n2019\t265.8\t30.8\t13.2\t27.9\t337.8\t3.51\t3.34\n2020\t264.2\t31.4\t11.8\t21.8\t329.3\t3.27\t3.03\nQuarters Ended\t\t\t\t\t\t\t\nSeptember 30:\t\t\t\t\t\t\t\n2019\t88.7\t10.2\t4.2\t9.4\t112.7\t3.48\t3.24\n2020\t85.9\t10.2\t3.4\t6.8\t106.4\t3.15%\t2.94%\n", "q10k_tbl_57": "\tRealized Investment Gains (Losses) from Actual Transactions\t\t\tImpairment Losses\t\t\tUnrealized Gains (Losses) from Changes in Fair Value of Equity Securities\t\t\n\tFixed Maturity Securities\tEquity Securities and Other Investments\tTotal\tFixed Maturity Securities\tEquity Securities and Other Investments\tTotal\t\tInvestment Gains (Losses)\nYears Ended\t\t\t\t\t\t\t\t\t\nDecember 31:\t\t\t\t\t\t\t\t\t\n2017\t16.6\t194.9\t211.6\t0\t0\t0\t0\t\t211.6\n2018\t(4.8)\t63.1\t58.2\t0\t0\t0\t(293.8)\t\t(235.6)\n2019\t(1.9)\t40.6\t38.6\t(2.0)\t0\t(2.0)\t599.5\t\t636.1\nNine Months Ended\t\t\t\t\t\t\t\t\t\nSeptember 30:\t\t\t\t\t\t\t\t\t\n2019\t(6.5)\t37.8\t31.3\t(2.0)\t0\t(2.0)\t439.3\t\t468.7\n2020\t(7.8)\t20.6\t12.7\t0\t0\t0\t(529.4)\t\t(516.7)\nQuarters Ended\t\t\t\t\t\t\t\t\t\nSeptember 30:\t\t\t\t\t\t\t\t\t\n2019\t(5.1)\t11.4\t6.3\t0\t0\t0\t57.3\t\t63.6\n2020\t.6\t.7\t1.4\t0\t0\t0\t79.2\t\t80.7\n", "q10k_tbl_58": "\t\t\tClaim and Loss Adjustment Expense Reserves\t\t\t\n\t\t\tSeptember 30 2020\t\tDecember 31 2019\t\n\t\t\tGross\tNet\tGross\tNet\nWorkers' compensation\t\t\t4946.5\t3080.0\t4887.6\t3079.1\nGeneral liability\t\t\t1316.7\t640.6\t1254.7\t610.9\nCommercial automobile (mostly trucking)\t\t\t2274.2\t1563.9\t1948.2\t1403.0\nOther coverages\t\t\t1065.1\t773.3\t918.9\t673.5\nUnallocated loss adjustment expense reserves\t\t\t265.8\t265.3\t256.6\t254.6\n\t\tTotal general insurance reserves\t9868.4\t6323.4\t9266.2\t6021.3\nTitle\t\t\t554.5\t554.5\t530.9\t530.9\nRFIG Run-off\t\t\t122.7\t122.7\t118.9\t118.9\nLife and accident\t\t\t11.2\t7.7\t13.3\t8.4\n\t\tTotal claim and loss adjustment expense reserves\t10557.1\t7008.4\t9929.5\t6679.7\nAsbestosis and environmental claim reserves included\t\t\t\t\t\t\n\tin the above general insurance reserves:\t\t\t\t\t\n\t\tAmount\t130.1\t83.3\t126.8\t83.3\n\t\t% of total general insurance reserves\t1.3%\t1.3%\t1.4%\t1.4%\n", "q10k_tbl_59": "\tSeptember 30\tSeptember 30\tDecember 31\tDecember 31\n\t2020\t2019\t2019\t2018\nEstimated reduction in beginning reserve\t1.6\t3.2\t3.2\t19.0\nTotal incurred claims and settlement expenses\t\t\t\t\nreduced (increased) by changes in\t\t\t\t\nestimated rescissions:\t\t\t\t\nCurrent year\t.3\t.3\t.6\t.9\nPrior year\t(.1)\t(1.2)\t(.9)\t(12.3)\nSub-total\t.1\t(.9)\t(.3)\t(11.4)\nEstimated rescission reduction in paid claims\t(.6)\t(.7)\t(1.3)\t(4.4)\nEstimated reduction in ending reserve\t1.1\t1.6\t1.6\t3.2\n", "q10k_tbl_60": "\tGeneral\tTitle\tRFIG Run-off\tConsolidated\nYears Ended December 31:\t\t\t\t\n2017\t71.8%\t.9%\t160.9%\t44.7%\n2018\t72.2\t2.1\t39.4\t43.1\n2019\t71.8\t2.7\t53.5\t42.9\nNine Months Ended September 30:\t\t\t\t\n2019\t71.4\t3.0\t51.2\t43.5\n2020\t70.7\t3.0\t80.8\t40.6\nQuarters Ended September 30:\t\t\t\t\n2019\t72.9\t3.1\t53.6\t42.5\n2020\t70.5%\t2.8%\t62.4%\t38.3%\n", "q10k_tbl_61": "\tGeneral Insurance Claim Ratios by Type of Coverage\t\t\t\t\t\t\n\tAll Coverages\tCommercial Automobile (mostly trucking)\tWorkers' Compen-sation\tInland Marine and Property\tFinancial Indemnity\tGeneral Liability\tOther\nYears Ended\t\t\t\t\t\t\t\nDecember 31:\t\t\t\t\t\t\t\n2017\t71.8%\t76.8%\t75.5%\t59.3%\t62.1%\t73.1%\t59.0%\n2018\t72.2\t79.3\t70.7\t62.8\t73.8\t68.9\t60.1\n2019\t71.8\t84.0\t63.2\t62.6\t64.0\t77.8\t61.4\nNine Months Ended\t\t\t\t\t\t\t\nSeptember 30:\t\t\t\t\t\t\t\n2019\t71.4\t81.5\t65.2\t63.5\t63.4\t72.1\t62.8\n2020\t70.7\t80.3\t63.6\t58.6\t59.4\t74.2\t67.3\nQuarters Ended\t\t\t\t\t\t\t\nSeptember 30:\t\t\t\t\t\t\t\n2019\t72.9\t85.6\t55.4\t61.6\t73.1\t77.7\t71.7\n2020\t70.5%\t80.4%\t54.1%\t59.3%\t58.0%\t95.6%\t70.1%\n", "q10k_tbl_62": "\tAverage Settled Claim Amount (a)\t\tReported Delinquency Ratio at End of Period\t\tClaims Rescissions and Denials\n\tTraditional Primary\tBulk\tTraditional Primary\tBulk\nYears Ended December 31:\t\t\t\t\t\n2017\t47267\t51446\t10.52%\t23.31%\t13.1\n2018\t47055\t54809\t9.38\t16.94\t4.4\n2019\t49233\t58708\t9.60\t15.97\t1.3\nNine Months Ended September 30:\t\t\t\t\t\n2019\t49633\t57512\t9.03\t15.40\t.7\n2020\t44090\t65722\t13.91%\t17.29%\t.6\nQuarters Ended September 30:\t\t\t\t\t\n2019\t51939\t57195\t\t\t.2\n2020\t39987\t67779\t\t\t.1\n", "q10k_tbl_63": "\t\tTraditional Primary Delinquency Ratios for Top Ten States (b):\t\t\t\t\t\t\t\t\n\tTX\tFL\tGA\tIL\tCA\tVA\tPA\tMD\tNJ\tNY\nAs of December 31:\t\t\t\t\t\t\t\t\t\t\n2017\t11.4%\t15.6%\t8.3%\t10.1%\t6.0%\t8.4%\t12.0%\t11.5%\t19.6%\t21.9%\n2018\t10.0\t9.8\t7.7\t8.7\t5.8\t7.9\t11.4\t10.5\t14.3\t19.6\n2019\t12.1\t8.0\t8.3\t8.5\t5.9\t7.6\t11.9\t10.2\t11.8\t19.2\nAs of September 30:\t\t\t\t\t\t\t\t\t\t\n2019\t10.1\t7.9\t8.1\t8.1\t5.9\t7.2\t11.1\t10.4\t11.0\t17.5\n2020\t17.3%\t12.7%\t13.3%\t14.2%\t9.7%\t11.9%\t15.9%\t14.8%\t19.4%\t25.5%\n", "q10k_tbl_64": "\t\tBulk Delinquency Ratios for Top Ten States (b):\t\t\t\t\t\t\t\t\n\tTX\tFL\tGA\tIL\tCA\tNC\tPA\tMD\tOH\tNY\nAs of December 31:\t\t\t\t\t\t\t\t\t\t\n2017\t20.3%\t34.2%\t17.8%\t21.5%\t26.4%\t19.7%\t25.3%\t24.8%\t15.0%\t44.2%\n2018\t14.5\t23.5\t14.5\t19.1\t13.0\t17.3\t21.0\t16.0\t12.4\t32.3\n2019\t15.4\t20.3\t13.1\t17.5\t9.7\t19.6\t17.7\t15.9\t14.3\t29.6\nAs of September 30:\t\t\t\t\t\t\t\t\t\t\n2019\t11.1\t19.8\t12.9\t15.4\t9.4\t17.0\t19.1\t13.6\t14.6\t30.5\n2020\t16.2%\t24.8%\t13.2%\t21.8%\t11.3%\t19.7%\t16.2%\t20.4%\t12.9%\t27.5%\n", "q10k_tbl_65": "\tTotal Delinquency Ratios for Top Ten States (includes \"other\" business) (b):\t\t\t\t\t\t\t\t\t\n\tTX\tFL\tGA\tIL\tCA\tVA\tPA\tMD\tNJ\tNY\nAs of December 31:\t\t\t\t\t\t\t\t\t\t\n2017\t12.1%\t16.9%\t8.8%\t10.6%\t9.2%\t8.6%\t12.8%\t12.0%\t21.1%\t25.0%\n2018\t10.4\t10.6\t8.1\t9.2\t6.8\t7.9\t12.0\t10.7\t15.3\t21.3\n2019\t12.4\t8.8\t8.6\t9.0\t6.5\t7.8\t12.4\t10.4\t12.4\t20.7\nAs of September 30:\t\t\t\t\t\t\t\t\t\t\n2019\t10.2\t8.7\t8.4\t8.4\t6.4\t7.3\t11.7\t10.5\t11.9\t19.3\n2020\t17.2%\t13.6%\t13.3%\t14.6%\t9.9%\t11.9%\t16.0%\t14.8%\t19.4%\t25.8%\n", "q10k_tbl_66": "\t\t\tRFIG\t\n\tGeneral\tTitle\tRun-off\tConsolidated\nYears Ended December 31:\t\t\t\t\n2017\t25.5%\t90.0%\t16.6%\t52.0%\n2018\t25.0\t90.0\t21.5\t51.6\n2019\t25.7\t89.5\t25.0\t52.2\nNine Months Ended September 30:\t\t\t\t\n2019\t25.7\t89.9\t25.5\t51.7\n2020\t25.8\t88.2\t29.9\t53.6\nQuarters Ended September 30:\t\t\t\t\n2019\t24.8\t87.5\t25.1\t51.9\n2020\t25.0%\t85.4%\t27.2%\t53.7%\n", "q10k_tbl_67": "\t\t\tRFIG\t\n\tGeneral\tTitle\tRun-off\tConsolidated\nYears Ended December 31:\t\t\t\t\n2017\t97.3%\t90.9%\t177.5%\t96.7%\n2018\t97.2\t92.1\t60.9\t94.7\n2019\t97.5\t92.2\t78.5\t95.1\nNine Months Ended September 30:\t\t\t\t\n2019\t97.1\t92.9\t76.7\t95.2\n2020\t96.5\t91.2\t110.7\t94.2\nQuarters Ended September 30:\t\t\t\t\n2019\t97.7\t90.6\t78.7\t94.4\n2020\t95.5%\t88.2%\t89.6%\t92.0%\n", "q10k_tbl_68": "31.1\tCertification by Craig R. Smiddy Chief Executive Officer pursuant to Rule 13a-14(a) and 15d-14(a) as\n\tadopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.\n31.2\tCertification by Karl W. Mueller Chief Financial Officer pursuant to Rule 13a-14(a) and 15d-14(a) as\n\tadopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.\n32.1\tCertification by Craig R. Smiddy Chief Executive Officer pursuant to Section 1350 Chapter 63 of Title\n\t18 United States Code as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.\n32.2\tCertification by Karl W. Mueller Chief Financial Officer pursuant to Section 1350 Chapter 63 of Title\n\t18 United States Code as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.\n101.INS\tXBRL Instance Document - The Instance Document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.\n101.SCH\tXBRL Taxonomy Extension Schema\n101.CAL\tXBRL Taxonomy Extension Calculation Linkbase\n101.DEF\tXBRL Taxonomy Extension Definition Linkbase\n101.LAB\tXBRL Taxonomy Extension Label Linkbase\n101.PRE\tXBRL Taxonomy Extension Presentation Linkbase\n", "q10k_tbl_69": "Exhibit\t\nNo.\tDescription\n31.1\tCertification by Craig R. Smiddy Chief Executive Officer pursuant to Rule 13a-14(a) and 15d-14(a) as\n\tadopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.\n31.2\tCertification by Karl W. Mueller Chief Financial Officer pursuant to Rule 13a-14(a) and 15d-14(a) as\n\tadopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.\n32.1\tCertification by Craig R. Smiddy Chief Executive Officer pursuant to Section 1350 Chapter 63 of Title\n\t18 United States Code as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.\n32.2\tCertification by Karl W. Mueller Chief Financial Officer pursuant to Section 1350 Chapter 63 of Title\n\t18 United States Code as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.\n101.INS\tXBRL Instance Document - The Instance Document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.\n101.SCH\tXBRL Taxonomy Extension Schema\n101.CAL\tXBRL Taxonomy Extension Calculation Linkbase\n101.DEF\tXBRL Taxonomy Extension Definition Linkbase\n101.LAB\tXBRL Taxonomy Extension Label Linkbase\n101.PRE\tXBRL Taxonomy Extension Presentation Linkbase\n"}{"bs": "q10k_tbl_3", "is": "q10k_tbl_24", "cf": "q10k_tbl_7"}None
Quarterly report pursuant to section 13 or 15(d) of the Security Exchange Act of 1934
for the quarterly period ended:
September 30, 2020
or
☐
Transition report pursuant to section 13 or 15(d) of the Security Exchange Act of 1934
Commission File Number:
001-10607
OLD REPUBLIC INTERNATIONAL CORPORATION
(Exact name of registrant as specified in its charter)
Delaware
36-2678171
(State or other jurisdiction of
(IRS Employer Identification No.)
incorporation or organization)
307 North Michigan Avenue
Chicago
Illinois
60601
(Address of principal executive office)
(Zip Code)
Registrant's telephone number, including area code: 312-346-8100
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common Stock / $1 par value
ORI
New York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. Yes: ☒ No: ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes: ☒ No: ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer
☒
Accelerated filer
☐
Non-accelerated filer
☐
Smaller reporting company
☐
Emerging growth company
☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Exchange Act Rule 12b-2).Yes: ☐ No: ☒
The number of shares of the Registrant's Common Stock outstanding at September 30, 2020 was 304,062,837.
There are 54 pages in this report
OLD REPUBLIC INTERNATIONAL CORPORATION
Report on Form 10-Q / September 30, 2020
INDEX
PAGE NO.
PART I
FINANCIAL INFORMATION:
CONSOLIDATED BALANCE SHEETS
3
CONSOLIDATED STATEMENTS OF INCOME
4
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
5
CONSOLIDATED STATEMENTS OF PREFERRED STOCK AND COMMON
SHAREHOLDERS' EQUITY
6
CONSOLIDATED STATEMENTS OF CASH FLOWS
7
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
8 - 19
MANAGEMENT ANALYSIS OF FINANCIAL POSITION AND RESULTS OF OPERATIONS
20 - 49
QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK
50
CONTROLS AND PROCEDURES
50
PART II
OTHER INFORMATION:
ITEM 1 - LEGAL PROCEEDINGS
51
ITEM 1A - RISK FACTORS
51
ITEM 6 - EXHIBITS
52
SIGNATURE
53
EXHIBIT INDEX
54
2
Old Republic International Corporation and Subsidiaries
Equity securities (at fair value) (cost: $3,271.0 and $3,089.1)
3,682.9
4,030.5
Other investments
25.2
26.0
Total investments
14,662.9
14,359.2
Other Assets:
Cash
95.0
78.8
Accrued investment income
88.0
89.3
Accounts and notes receivable
1,734.0
1,466.7
Federal income tax recoverable: Current
—
5.7
Reinsurance balances and funds held
202.2
178.4
Reinsurance recoverable: Paid losses
81.0
68.5
Policy and claim reserves
4,278.8
3,755.3
Deferred policy acquisition costs
328.8
325.4
Sundry assets
777.6
748.5
Total Other Assets
7,585.7
6,717.1
Total Assets
$
22,248.7
$
21,076.3
Liabilities, Preferred Stock, and Common Shareholders' Equity
Liabilities:
Losses, claims, and settlement expenses
$
10,557.1
$
9,929.5
Unearned premiums
2,495.6
2,224.7
Other policyholders' benefits and funds
194.3
194.4
Total policy liabilities and accruals
13,247.1
12,348.7
Commissions, expenses, fees, and taxes
540.3
550.9
Reinsurance balances and funds
852.1
616.0
Federal income tax payable: Current
9.4
—
Federal income tax payable: Deferred
66.4
112.2
Debt
966.2
974.0
Sundry liabilities
492.5
474.1
Commitments and contingent liabilities
Total Liabilities
16,174.0
15,076.1
Preferred Stock (1)
—
—
Common Shareholders' Equity:
Common stock (1)
304.0
303.6
Additional paid-in capital
1,305.6
1,297.5
Retained earnings
4,234.9
4,386.0
Accumulated other comprehensive income (loss)
336.1
77.7
Unallocated ESSOP shares (at cost)
(106.1)
(64.8)
Total Common Shareholders' Equity
6,074.6
6,000.1
Total Liabilities, Preferred Stock and Common Shareholders' Equity
$
22,248.7
$
21,076.3
________
(1)At September 30, 2020and December 31, 2019, there were 75,000,000 shares of $0.01 par value preferred stock authorized, of which no shares were outstanding. As of the same dates, there were 500,000,000 shares of common stock, $1.00 par value, authorized, of which 304,062,837 and 303,652,553 were issued as of September 30, 2020and December 31, 2019, respectively. At September 30, 2020 and December 31, 2019, there were 100,000,000 shares of Class B Common Stock, $1.00 par value, authorized, of which no shares were issued.
See accompanying Notes to Consolidated Financial Statements.
3
Old Republic International Corporation and Subsidiaries
Consolidated Statements of Income (Unaudited)
($ in Millions, Except Share Data)
Quarters Ended
Nine Months Ended
September 30,
September 30,
2020
2019
2020
2019
Revenues:
Net premiums earned
$
1,496.0
$
1,423.4
$
4,225.8
$
4,016.5
Title, escrow, and other fees
168.9
138.2
418.9
363.8
Total premiums and fees
1,664.9
1,561.7
4,644.8
4,380.4
Net investment income
106.4
112.7
329.3
337.8
Other income
31.7
32.9
98.5
97.4
Total operating revenues
1,803.0
1,707.3
5,072.7
4,815.7
Investment gains (losses):
Realized from actual transactions
1.4
6.3
12.7
31.3
Realized from impairments
—
—
—
(2.0)
Unrealized from changes in fair value of
equity securities
79.2
57.3
(529.4)
439.3
Total realized and unrealized investment
gains (losses)
80.7
63.6
(516.7)
468.7
Total revenues
1,883.8
1,771.0
4,556.0
5,284.4
Benefits, Claims and Expenses:
Benefits, claims and settlement expenses
633.2
659.5
1,870.8
1,887.9
Dividends to policyholders
4.9
4.2
14.0
17.2
Underwriting, acquisition, and other expenses
929.1
845.0
2,603.0
2,372.0
Interest and other charges
9.5
9.7
31.8
30.8
Total expenses
1,576.8
1,518.6
4,519.8
4,308.0
Income (loss) before income taxes (credits)
306.9
252.4
36.1
976.3
Income Taxes (Credits):
Current
45.0
38.9
110.9
113.2
Deferred
15.9
10.5
(113.7)
82.4
Total
60.9
49.5
(2.7)
195.6
Net Income (Loss)
$
246.0
$
202.8
$
38.9
$
780.6
Net Income (Loss) Per Share:
Basic
$
.83
$
.68
$
.13
$
2.60
Diluted
$
.83
$
.67
$
.13
$
2.59
Average shares outstanding: Basic
297,729,418
299,894,995
298,526,123
299,740,751
Diluted
297,990,822
301,384,364
299,015,526
301,034,156
See accompanying Notes to Consolidated Financial Statements.
4
Old Republic International Corporation and Subsidiaries
Consolidated Statements of Comprehensive Income (Unaudited)
($ in Millions)
Quarters Ended
Nine Months Ended
September 30,
September 30,
2020
2019
2020
2019
Net Income (Loss) As Reported
$
246.0
$
202.8
$
38.9
$
780.6
Other comprehensive income (loss):
Unrealized gains (losses) on securities:
Unrealized gains (losses) before reclassifications,
not included in the statements of income
32.3
53.3
321.5
366.6
Amounts reclassified as realized investment (gains)
losses in the statements of income
(.7)
7.3
7.8
10.7
Pretax unrealized gains (losses) on securities
31.6
60.7
329.3
377.3
Deferred income taxes (credits)
6.6
12.7
69.5
79.5
Net unrealized gains (losses) on securities, net of tax
24.9
48.0
259.8
297.8
Defined benefit pension plans:
Net pension adjustment before reclassifications
—
—
—
(2.6)
Amounts reclassified as underwriting, acquisition,
and other expenses in the statements of income
.9
1.0
2.7
3.0
Pretax net adjustment related to defined benefit
pension plans
.9
1.0
2.7
.4
Deferred income taxes (credits)
.1
.2
.5
.1
Net adjustment related to defined benefit pension
plans, net of tax
.7
.8
2.1
.3
Foreign currency translation and other adjustments
2.8
(1.6)
(3.6)
3.8
Total other comprehensive income (loss)
28.5
47.2
258.3
302.0
Comprehensive Income (Loss)
$
274.5
$
250.1
$
297.3
$
1,082.7
See accompanying Notes to Consolidated Financial Statements.
5
Old Republic International Corporation and Subsidiaries
Consolidated Statements of Preferred Stock
and Common Shareholders' Equity (Unaudited)
($ in Millions)
Quarters Ended
Nine Months Ended
September 30,
September 30,
2020
2019
2020
2019
Convertible Preferred Stock:
Balance, beginning and end of period
$
—
$
—
$
—
$
—
Common Stock:
Balance, beginning of period
$
304.0
$
303.2
$
303.6
$
302.7
Dividend reinvestment plan
—
—
—
—
Net issuance of shares under stock based compensation plans
—
.3
.3
.7
Balance, end of period
$
304.0
$
303.5
$
304.0
$
303.5
Additional Paid-in Capital:
Balance, beginning of period
$
1,305.1
$
1,288.6
$
1,297.5
$
1,277.6
Dividend reinvestment plan
.2
1.0
.7
1.4
Net issuance of shares under stock based compensation plans
.1
4.3
4.8
10.3
Stock based compensation
.4
.4
2.0
3.6
ESSOP shares released
—
.8
.7
2.1
Other - net
(.2)
—
(.2)
—
Balance, end of period
$
1,305.6
$
1,295.2
$
1,305.6
$
1,295.2
Retained Earnings:
Balance, beginning of period
$
4,051.2
$
4,326.7
$
4,386.0
$
3,849.8
Change in accounting principle
—
—
(2.3)
18.4
Balance, beginning of period, as adjusted
4,051.2
4,326.7
4,383.6
3,868.3
Net income (loss)
246.0
202.8
38.9
780.6
Dividends on common shares ($.21, $1.20, $.63 and $1.60 per
common share)
(62.4)
(359.4)
(187.7)
(478.8)
Balance, end of period
$
4,234.9
$
4,170.1
$
4,234.9
$
4,170.1
Accumulated Other Comprehensive Income (Loss):
Balance, beginning of period
$
307.5
$
44.8
$
77.7
$
(210.0)
Net unrealized gains (losses) on securities, net of tax
24.9
48.0
259.8
297.8
Net adjustment related to defined benefit pension plans,
net of tax
.7
.8
2.1
.3
Foreign currency translation and other adjustments
2.8
(1.6)
(3.6)
3.8
Balance, end of period
$
336.1
$
92.0
$
336.1
$
92.0
Unallocated ESSOP Shares:
Balance, beginning of period
$
(109.0)
$
(69.4)
$
(64.8)
$
(73.9)
ESSOP shares released
2.8
2.2
8.6
6.8
Purchase of unallocated ESSOP shares
—
—
(50.0)
—
Balance, end of period
$
(106.1)
$
(67.1)
$
(106.1)
$
(67.1)
See accompanying Notes to Consolidated Financial Statements.
6
Old Republic International Corporation and Subsidiaries
Consolidated Statements of Cash Flows (Unaudited)
($ in Millions)
Nine Months Ended
September 30,
2020
2019
Cash flows from operating activities:
Net income (loss)
$
38.9
$
780.6
Adjustments to reconcile net income (loss) to
net cash provided by operating activities:
Deferred policy acquisition costs
(3.3)
(16.5)
Premiums and other receivables
(263.5)
(188.3)
Unpaid claims and related items
328.8
142.8
Unearned premiums and other policyholders' liabilities
46.0
81.0
Income taxes
(99.7)
97.1
Prepaid federal income taxes
—
(8.6)
Reinsurance balances
193.1
130.5
Realized investment (gains) losses from actual transactions and impairments
(12.7)
(29.3)
Unrealized investment (gains) losses from changes in fair value
of equity securities
529.4
(439.3)
Accounts payable, accrued expenses and other
51.9
116.1
Total
808.9
666.2
Cash flows from investing activities:
Fixed maturity securities:
Available for sale:
Maturities and early calls
935.3
464.4
Sales
343.6
430.3
Sales of:
Equity securities
159.1
520.6
Other - net
7.1
28.2
Purchases of:
Fixed maturity securities:
Available for sale
(1,380.2)
(1,016.4)
Equity securities
(321.0)
(430.2)
Other - net
(31.7)
(42.4)
Net decrease (increase) in short-term investments
(263.6)
(132.0)
Other - net
(.4)
(1.2)
Total
(551.9)
(178.6)
Cash flows from financing activities:
Issuance of common shares
6.0
12.7
Redemption of debentures and notes
(8.6)
(8.4)
Purchase of unallocated common shares by ESSOP
(50.0)
—
Dividends on common shares (including a special dividend paid in September
2019 of $303.4)
(187.7)
(478.8)
Other - net
(.5)
(3.7)
Total
(240.8)
(478.3)
Increase (decrease) in cash
16.1
9.2
Cash, beginning of period
78.8
100.3
Cash, end of period
$
95.0
$
109.6
Supplemental cash flow information:
Cash paid (received) during the period for: Interest
$
41.3
$
41.9
Income taxes
$
98.2
$
99.0
See accompanying Notes to Consolidated Financial Statements.
7
OLD REPUBLIC INTERNATIONAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
($ in Millions, Except Share Data)
1. Accounting Policies and Basis of Presentation:
The accompanying consolidated financial statements have been prepared in conformity with the Financial Accounting Standards Board's ("FASB") Accounting Standards Codification ("ASC") of accounting principles generally accepted in the United States of America ("GAAP"). These interim financial statements should be read in conjunction with these notes and those included in the Company's 2019 Annual Report on Form 10-K incorporated herein by reference.
Pertinent accounting and disclosure pronouncements issued from time to time by the FASB are adopted by the Company as they become effective. Recent pronouncements are discussed below.
a) Effective January 1, 2019, the Company adopted FASB guidance on lease accounting which requires balance sheet recognition of all leases with a term greater than 12 months. The Company's adoption of this guidance is discussed in Note 7.
b) Effective January 1, 2020, the Company adopted the FASB’s current expected credit loss standard ("CECL") which requires the immediate recognition of estimated credit losses expected to occur over the remaining life of certain financial assets measured at amortized cost, including the Company’s reinsurance recoverables, held to maturity securities and its accounts and notes receivable. CECL replaces the current incurred loss impairment model that recognizes losses when a probability threshold is met with a requirement to recognize lifetime expected credit losses immediately when a financial asset is originated or purchased and at subsequent measurement dates. The expected credit losses, and subsequent adjustment to such losses, are recorded through an allowance account that is deducted from the amortized cost basis of the financial asset, with the net carrying value of the asset presented on the consolidated balance sheet.
The guidance also modifies the impairment model for available for sale fixed maturity securities by requiring the recognition of other than temporary impairments ("OTTI") relating to credit losses through an allowance account, as opposed to a charge that cannot be revised should the underlying security recover. Under the guidance, the length of time a security has been in an unrealized loss position will no longer impact the determination as to whether an OTTI loss exists.
The guidance relating to financial assets measured at amortized cost was adopted on a modified retrospective basis, resulting in a net of tax adjustment to January 1, 2020 retained earnings of $2.3. The Company’s total credit loss allowance relating to financial assets increased from $30.1 as of January 1, 2020 to $35.7 at September 30, 2020. The September 30, 2020 allowance was comprised of $16.0 related to reinsurance recoverables and $19.7 related to accounts and notes receivable. At adoption, the allowance included $14.5 related to reinsurance recoverables, $15.5 related to accounts and notes receivable, and an immaterial amount related to held to maturity securities.
The Company performs an ongoing evaluation of reinsurance balances outstanding and uses a probability-of-default methodology to estimate the credit allowance for uncollectible amounts. Allowances for uncollectible accounts and notes receivable are established based on a review of amounts outstanding, historical charge off activity, and current and forecasted economic conditions.
The revised impairment guidance for available for sale fixed maturity securities was adopted on a prospective basis. Related disclosures relative to this standard’s impact on the Company’s investment portfolio are included in Note 3.
The financial accounting and reporting process relies on estimates and on the exercise of judgment. In the opinion of management all adjustments consisting only of normal recurring accruals necessary for a fair presentation of interim periods' results and financial position have been recorded. Amounts shown in the consolidated financial statements and applicable notes are stated (except as otherwise indicated and as to share data) in millions, which amounts may not add to totals shown due to truncation. Necessary reclassifications are made in prior periods' financial statements whenever appropriate to conform to the most current presentation.
2. Common Share Data:
Earnings Per Share - Consolidated basic earnings per share excludes the dilutive effect of common stock equivalents and is computed by dividing income (loss) available to common stockholders by the weighted-average number of common shares actually outstanding for the quarterly and year-to-date periods. Diluted earnings per share are similarly calculated with the inclusion of dilutive common stock equivalents. The following table provides a reconciliation of net income (loss) and the number of shares used in basic and diluted earnings per share calculations.
8
Quarters Ended
Nine Months Ended
September 30,
September 30,
2020
2019
2020
2019
Numerator:
Basic and diluted earnings per share -
income (loss) available to common stockholders
$
246.0
$
202.8
$
38.9
$
780.6
Denominator:
Basic earnings per share -
weighted-average shares (a)
297,729,418
299,894,995
298,526,123
299,740,751
Effect of dilutive securities - stock based
compensation awards
261,404
1,489,369
489,403
1,293,405
Diluted earnings per share -
adjusted weighted-average shares (a)
297,990,822
301,384,364
299,015,526
301,034,156
Earnings per share: Basic
$
.83
$
.68
$
.13
$
2.60
Diluted
$
.83
$
.67
$
.13
$
2.59
Anti-dilutive common stock equivalents
excluded from earnings per share computations:
Stock based compensation awards
8,063,111
40,000
5,858,669
2,238,055
__________
(a) In calculating earnings per share, pertinent accounting rules require that common shares owned by the Company's Employee Savings and Stock Ownership Plan that are not yet allocated to participants in the plan be excluded from the calculation. Such shares are issued and outstanding, and have the same voting and other rights applicable to all common shares.
3. Investments:
The Company classifies its fixed maturity securities as those it either (1) has the positive intent and ability to hold until maturity, (2) has available for sale or (3) has the intention of trading. As of June 30, 2020 the Company changed its intent to hold its tax exempt municipal bond portfolio until maturity and consequently, reclassified these securities from their previous held to maturity designation to available for sale. As a result, cumulative net of tax unrealized gains of $48.5 were recognized in other comprehensive income as of that date. The Company's entire fixed maturity portfolio is now classified as available for sale.
Fixed maturity securities classified as "available for sale" are reported at fair value with changes in such values, net of deferred income taxes, reflected directly in shareholders' equity. Fixed maturity securities classified as "held to maturity" are carried at amortized cost. Equity securities are reported at fair value with changes in such values reflected as unrealized investment gains (losses) in the consolidated statements of income. Fair values for fixed maturity securities and equity securities are based on quoted market prices or estimates using values obtained from recognized independent pricing services.
The status and fair value changes of each of the fixed maturity investments are reviewed at least once per quarter during the year, and estimates of other-than-temporary impairments ("OTTI") in the portfolio's value are evaluated and established at each quarterly balance sheet date. In reviewing investments for OTTI, the Company, in addition to a security's market price history, considers the totality of such factors as the issuer's operating results, financial condition and liquidity, its ability to access capital markets, credit rating trends, most current audited financial statements, industry and securities markets conditions, and analyst expectations to reach its conclusions. Sudden fair value declines caused by such adverse developments as newly emerged or imminent bankruptcy filings, issuer default on significant obligations, or reports of financial accounting developments that bring into question the validity of the issuer's previously reported earnings or financial condition, are recognized as realized losses as soon as credible publicly available information emerges to confirm such developments. In the event the Company's estimate of OTTI is insufficient at any point in time, future periods' net income (loss) would be negatively impacted by the recognition of additional impairment losses, but its financial position would not necessarily be affected adversely inasmuch as such losses, or a portion of them, could have been recognized previously as unrealized losses directly in shareholders' equity. The Company recognized no OTTI adjustments for the quarter and nine months ended September 30, 2020, and $0 and $2.0 of OTTI adjustments for the quarter and nine months ended September 30, 2019, respectively.
A summary of fixed maturity securities by type, contractual maturity and credit quality are shown in the following tables. Expected maturities will differ from contractual maturities since borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
9
Amortized Cost
Gross Unrealized Gains
Gross Unrealized Losses
Estimated Fair Value
Fixed Maturity Securities by Type:
September 30, 2020:
Available for sale:
U.S. & Canadian Governments
$
1,860.2
$
105.4
$
.1
$
1,965.5
Tax-exempt
1,004.1
66.8
—
1,071.0
Corporate
6,756.5
425.5
11.9
7,170.1
$
9,620.9
$
597.8
$
12.1
$
10,206.6
December 31, 2019:
Available for sale:
U.S. & Canadian Governments
$
1,842.3
$
36.9
$
.4
$
1,878.8
Corporate
6,694.9
225.5
2.8
6,917.6
$
8,537.3
$
262.5
$
3.3
$
8,796.5
Held to maturity:
Tax-exempt
$
1,021.7
$
36.5
$
—
$
1,058.2
Amortized Cost
Estimated Fair Value
Fixed Maturity Securities Stratified by Contractual Maturity at September 30, 2020:
Available for sale:
Due in one year or less
$
993.2
$
1,003.2
Due after one year through five years
5,444.9
5,750.7
Due after five years through ten years
3,036.4
3,303.2
Due after ten years
146.3
149.3
$
9,620.9
$
10,206.6
Fixed Maturity Securities Stratified by Credit Quality (a):