The impact of the COVID-19 pandemic has resulted in significant uncertainty, volatility and disruption in the U.S. economy and financial markets. Governmental responses to the pandemic have included shelter-in-place orders, directing many businesses to cease operations and individuals to restrict their movements. These actions have resulted in rapid decreases in economic activity, an increase in unemployment and pressures on the commercial real estate market. For a further discussion of the impact of the pandemic on Old Republic’s business for the year ended December 31, 2020, see “Management Analysis of Financial Position and Results of Operations-COVID-19 Pandemic and Old Republic’s Business.”

In addition, the pandemic caused significant financial market disruptions, most particularly in the first and second quarters of 2020. This had an adverse impact on the Company’s investment portfolio and stock price. While many sectors in which the Company invests have recovered or partially recovered, should the COVID-19 pandemic continue to cause economic disruption, the Company’s investment portfolio could experience continued volatility. For more information on the Company’s investment portfolio performance, see “Management Analysis of Financial Position and Results of Operations-Financial Position.”

While the duration and ultimate effects of the pandemic remain highly uncertain, COVID-19 continues to have an adverse impact on the U.S. economy, which led to increased or continuing restrictions on business activity. A continuing or worsening reduction in economic activity could lead to a meaningful decline in the demand for the Company’s products. The pandemic could also have a more significant impact on Old Republic’s claims experience in future periods, resulting in a decrease in profitability.

~~Legislative and regulatory responses to COVID-19 could adversely affect Old Republic's business.~~

Federal, state and local government authorities, including state insurance departments, have taken various actions in response to the pandemic. For example, certain states are considering legislation that would retroactively mandate coverage for losses that are not covered under the terms of insurance policies. Certain state insurance departments are taking regulatory action that creates a presumption of compensability for workers in certain industries. Other regulatory initiatives include requirements to return premium, prevent the collection of premium, and/or prohibit the cancellation or non-renewal of policies. These legislative and regulatory actions, individually or in the aggregate, could adversely affect Old Republic’s business.

Old Republic’s loss reserves are based on estimates, and if these prove to be inadequate to cover its actual insured losses, Old Republic’s business, financial condition, and results of operations could be adversely affected.

To recognize liabilities for anticipated policy losses, the Company establishes reserves as balance sheet liabilities representing its best estimate of amounts needed to pay reported and unreported losses and the related loss adjustment expenses. It is not possible to calculate precisely what these liabilities will amount to in advance and, accordingly, the reserves represent a best estimate at a point in time. Estimating loss reserves is a difficult, complex, and inherently uncertain process involving many variables and subjective judgments. These estimates are based upon known historical loss data, assumptions, and expectations of future trends in claim frequency and severity, changes in legal, regulatory and litigation environments, and inflation and other economic considerations.

Moreover, for long-tail coverages which generally include workers' compensation, commercial ~~automobile (trucking)~~auto liability, general liability, errors and omissions (E&O) and directors’ and officers' (D&O) liability, as well as title insurance, significant periods of time often elapse between the occurrence of an insured loss, the reporting of the loss to the Company, and the payment of that loss. The length of time required to ultimately settle long-tailed claims and the costs associated with resolving these claims, coupled with uncertain and sometimes variable judicial rulings on coverage and policy allocation issues, along with the possibility of legislative actions, makes reserving for these exposures highly uncertain and creates a risk of possibly adverse developments in both known and as-yet-unknown claims.

As a result of these uncertainties, the ultimate paid loss and loss adjustment expense may deviate, perhaps substantially, from the point-in-time estimates of such losses and expenses, as reflected in the loss reserves included in the Company’s financial statements. For example, for the years ended December 31, ~~2020, 2019~~2023, 2022, and ~~2018,~~2021, the Company experienced consolidated favorable development of reserves for losses and loss adjustment expenses incurred in prior years of ~~$83.8~~$305.8 million, ~~$30.9~~$282.6 million, and ~~$77.8~~$210.6 million, respectively, which had a positive effect on results of operations in those periods. To the extent that loss and loss adjustment expenses exceed initial estimates, the Company will be required to immediately recognize the less favorable experience and increase loss reserves, with a corresponding reduction in net income in the period in which the unfavorable development is identified.

If the Company is unable to accurately underwrite risks and charge competitive yet profitable rates to its policyholders and customers, the Company’s business, financial condition, and results of operations ~~would~~could be materially and adversely affected.

In general, the premiums for the Company’s insurance policies are established at the time a policy is issued and, therefore, before all of the underlying liabilities and costs associated with the policy are known. Like other insurance companies, Old Republic relies on estimates and assumptions in setting premium rates. Establishing adequate premiums is necessary to generate sufficient revenue to offset losses, loss adjustment expenses and other underwriting costs and to earn an underwriting profit. If the Company does not accurately assess and underwrite the risks that it assumes, it may not charge adequate premiums to cover its losses and expenses, which would ~~negatively~~adversely affect the Company’s financial condition and results of operations. Alternatively, the Company could set its premiums too high, which could reduce its competitiveness and lead to lower revenues.

Pricing involves the acquisition and analysis of historical loss data, and the projection of future trends, loss costs and expenses, and inflation trends, among other factors, for each of the Company’s products. In order to accurately price its policies, the Company:

● •collects and analyzes a substantial volume of data from its insureds;

● •develops, tests, and applies appropriate projections and rating formulas;

● •closely monitors and timely recognizes changes in trends; ~~and;~~and

● •seeks to project expected losses for its insureds with reasonable accuracy.

The Company seeks to implement its pricing accurately in accordance with its assumptions, data available to it and its analysis of that data. Given the uncertainties generally inherent in estimates and assumptions, the Company’s ability to undertake these efforts successfully and, as a result, accurately price its policies, is not free from risk.

If the Company is unable to realize its investment objectives, its financial condition and results of operations may be adversely affected.

Investment income is an important component of the Company’s net income and one of its primary sources of cash flow to support operations. As of December 31, ~~2020,~~2023, the consolidated investment portfolio reflected an allocation of approximately ~~74%~~83% to ~~fixed-maturity~~fixed income (bonds and notes) and short-term investments, and ~~26%~~17% to equity securities (common ~~stock)~~stocks). For the years ended December 31, ~~2020, 2019~~2023, 2022, and ~~2018,~~2021, the Company reported ~~$438.9~~$578.3 million, ~~$450.7~~$459.5 million, and ~~$431.8~~$434.3 million of net investment income, respectively.

The Company’s ~~investments are~~entire investment portfolio is subject to market-wide risks and fluctuations inherent in the financial markets, including but not limited to, inflation, regulatory changes, inactive capital markets, governmental and social stability, economic outlooks, unemployment, financial industry events, and recession, as well as to risks inherent in particular securities. Changing or unprecedented market conditions ~~such as experienced in the first half of the year as a result of the COVID-19 pandemic,~~ could decrease liquidity and materially impact the future valuation of fixed ~~maturity~~income and equity securities in the investment portfolio.

In structuring its investment portfolio, the Company seeks to align its policyholder obligations and the maturity of its fixed ~~maturity~~income portfolio. As a result of either an unexpected increase in policyholder obligations (e.g., because of an underestimate in reserves) or a short fall in funds available (e.g., because of a default in a fixed ~~maturity~~income investment), the Company could have difficulty in meeting its obligations. In this case, the Company could be forced to liquidate its investments before their maturity or under adverse securities market conditions to obtain the funds necessary to meet its obligations. This could result in unexpected losses in the portfolio. Additionally, the Company may be forced to change its investments or investment policies depending upon regulatory, economic and market conditions, thus affecting the existing or anticipated financial condition and operating needs, including the tax position, of its business. In such circumstances, the Company’s investment objectives may not be achieved, and its financial condition and results of operations may be adversely affected.

Losses due to nonperformance or defaults by counterparties can have a material adverse effect on the Company’s profitability or sources of liquidity.

The Company has credit risk with counterparties associated with investments, premiums receivable, and reinsurance recoverables. The Company’s subsidiaries have significant business relationships with financial institutions, particularly national banks. ~~These~~To secure the obligations of the insureds and certain reinsurers, the insurance subsidiaries are often the beneficiaries of a significant amount of security in the form of letters of credit, trust funds, and ~~investments which certain banks hold as collateral securing the obligations of insureds and certain reinsurers.~~pledged investments. Other banks ~~are~~serve as depositories holding large sums of money in escrow accounts established by the Company's ~~title~~Title Insurance subsidiaries. ~~There~~Accordingly, there is ~~thus~~ a risk of concentrated financial ~~exposures~~exposure in one or more such commercial banking institutions. These counterparties may default on their obligations to the Company due to bankruptcy, insolvency, lack of liquidity, adverse economic conditions, operational failure, fraud, government intervention and other reasons. If any of these institutions fail or are unable to honor their credit obligations, or if escrowed funds become lost or tied up due to the failure of a bank, the result could have a materially adverse effect on the Company’s business, results of operations, and financial condition.

The Company is also exposed to credit risk with its reinsurers. Reinsurance does not discharge the Company’s insurance subsidiaries of their obligations under their insurance policies. The Company’s insurance subsidiaries remain liable to policyholders even if they are unable to make recoveries that they believe they are entitled to receive under their reinsurance contracts. With respect to long-tail coverages, the creditworthiness of the Company’s reinsurers may change before it can recover amounts to which it is entitled. If a reinsurer is unable to meet any of its

obligations to the Company, itthe Company would be responsible for all ~~claims~~loss and ~~claim settlement~~loss adjustment expenses for which it would have otherwise received payment from the reinsurer. If the Company is unable to collect amounts recoverable from reinsurers, its business, financial condition, and results of operations would be adversely affected.

The Company’s status as a holding company with no direct operations could adversely affect its liquidity and its ability to service debt and pay dividends.

Old Republic is an insurance holding company ~~with no operations of its own~~ that transacts business solely through its operating subsidiaries. Old Republic’s primary assets are the investments in these operating subsidiaries, and substantially all of the Company’s assets consist of those used for the business conducted by its insurance subsidiaries. Old Republic relies upon dividends and interest from these subsidiaries in order to pay the interest and principal on its debt obligations, dividends to shareholders, and corporate expenses.

The payment of dividends by the Company’s insurance subsidiaries is restricted by state insurance laws or subject to approval of the insurance regulatory authorities in the jurisdictions in which ~~they~~the subsidiaries are domiciled. These authorities recognize only statutory accounting practices for determining financial position, results of operations, and the ability of an insurer to pay dividends to its shareholders. The specific rules governing the payment of dividends by the Company’s insurance subsidiaries vary from jurisdiction to jurisdiction. The Company’s insurance subsidiaries are domiciled in many different jurisdictions. Generally, the insurance subsidiaries are prohibited from paying dividends to the holding company in excess of either the greater or lesser of (depending upon the state involved) 10% of statutory surplus or a portion of statutory net income without the prior approval of the applicable insurance regulatory authority. Dividends declared during the fiscal years ended December 31, ~~2020, 2019~~2023, 2022, and ~~2018~~2021 to the holding company by its subsidiaries amounted to ~~$472.4~~$673.3 million, ~~$399.5~~$614.6 million, and ~~$412.3~~$566.7 million, respectively. There can be no assurance that the Company’s subsidiaries will be able to continue to pay such dividends to usthe Company in the future. If the Company’s subsidiaries are unable to pay dividends to the holding company in amounts necessary to satisfy existing obligations, the Company’s ability to service its debt and pay dividends to its shareholders would be adversely affected.

Old Republic may not be able to maintain paying dividends at current rates, or at all.

Old Republic has a long history of paying regular quarterly dividends and in recent years has paid special dividends. Any determination to pay either type of dividend to the Company’s stockholders in the future will be at the discretion of the board of directors and will depend on the Company’s results of operations, financial condition, and other factors deemed relevant by the board of directors. Old Republic’s ability to pay dividends depends largely on the Company’s subsidiaries’ earnings and operating capital requirements, and is subject to regulatory and other constraints of the subsidiaries, including the effect of any such dividends or distributions on the AM Best rating or other ratings of the insurance subsidiaries. In addition, the Company may choose to retain capital to support growth or further mitigate risk, instead of returning excess capital to its shareholders. As a result, there can be no assurance that Old Republic will be able to maintain paying dividends as it has in the past.

Technology and security breaches or failures, including cybersecurity incidents, could disrupt the Company’s operations, result in financial losses, the loss of critical and confidential information, and expose the Company to additional liabilities, which could adversely affect its reputation and results of operations.

~~To perform day to day operations as well as communicate with customers, business partners and other stakeholders, the~~ TheCompany depends upon ~~an array of digital technologies. The Company’s business depends on effective~~technology-based information systems ~~and the integrity and timeliness of the data its information systems use~~ to ~~run its~~conduct business. The Company uses computer systems ~~to store, retrieve, evaluate~~ and ~~make use of customer, employee,~~other electronic information resources, including both proprietary and ~~company data and information. Some internal processes, in turn, rely upon~~ third-party technology systems and ~~tools. This combination of resources allow business units~~tools, to ~~provide insurance quotes,~~ process, ~~premium payments, make changes to existing policies, file~~transmit, receive, and ~~pay claims, provide customer support, execute transactions and manage investment portfolios. In addition, the Company routinely transmits, receives and stores~~store certain personal, confidential, and proprietary ~~information~~information; to communicate with customers, service providers and other third parties by email and other electronic ~~means. Although the Company attempts to keep this information confidential, it may be unable to do so in all events, especially with clients, vendors, service providers,~~means; and ~~other third parties.~~perform various business operations, including transferring significant amounts of funds using electronic means.

The Company’s systems and processes have ~~in the past~~ been, and will likely ~~continue~~remain, subject to ~~be, subjected to cyber threats~~cyber-attacks and other ~~computer related~~ intrusions. ~~Like other large companies, Old Republic is a target of potential cyber~~These attacks are occurring with greater frequency and ~~other security threats~~sophistication, and ~~must continuously monitor and develop information technology networks and infrastructure to prevent, detect, address and mitigate the risk of threats to data and systems, including~~include malware and computer virus attacks, ransomware, unauthorized access, misuse, denial-of-service attacks, system failures and disruptions. ~~In some cases, such unauthorized access may not be immediately detected and can remain undetected for some time, increasing the severity~~A future breach of the ~~incident. There is no assurance that the~~ Company’s security measures, including information security policies, will provide fully effective protection from such events. Any such cyber incident could have a material adverse effect on the Company’s business, financial condition and results of operations.

~~Any information security breach of~~ systems or ~~services or breach~~the systems of a third-party vendor or services provider ~~that results in the loss or unauthorized access of sensitive data~~ could disrupt the Company’s ability to conduct business ~~operations during recovery and any remediation period. In the~~operations. During such an event, ~~of a cyber-attack or other information security incident,~~ systems may be inaccessible to employees, customers, or business partners for an extended period of time and employees may be unable to perform their ~~duties for an extended period of time if data or systems are disabled or~~

~~destroyed. In addition, a successful cyber-attack or similar information security incident~~duties. These attacks could expose the Company to substantial costs and negative consequences, including the loss of funds, costs of investigation and remediation, ~~costs,~~ lost revenues, and reputational damage.

In addition, the email and computer systems used by the Company, its service providers, and agents for the transfer of funds have been subject to fraudulent spoofing attacks. In some cases, unauthorized access or fraudulent attacks have not been immediately detected, thereby increasing the severity of the incident. Funds transferred to a fraudulent recipient are not always recoverable and the Company may be liable for those unrecovered funds. Losses resulting from unrecovered funds could result in a material adverse effect on the Company’s financial condition and results of operations.

Old Republic regularly monitors its networks, infrastructure and procedures in an effort to prevent, detect, address, and mitigate these risks. There is no assurance that the Company’s security procedures will provide fully effective protection from such events. A cyber incident or fraud attack could have a material adverse effect on the Company’s business, financial condition, and results of operations.

Furthermore, Old Republic’s businesses must comply with laws and regulations enacted by U.S. federal and state governments, as well as laws enacted by various regulatory organizations or exchanges relating to the privacy and security of the information of clients, employees, or others. These laws and regulations are increasing in complexity and number, change frequently, and sometimes conflict. The compromise of personal, confidential, or proprietary information could expose the Company to liability under federal and state laws, ~~and~~ subject it to litigation and investigations, and result in reputational harm, which could have a material adverse effect on the Company’s business, financial condition, and results of operations.

The Company may suffer losses from litigation, which could materially and adversely affect its financial condition and business operations.

Like other large insurance companies, Old Republic continually faces risks associated with litigation of various types, including claims litigation arising in the ordinary course, corporate litigation, and disputes relating to bad faith ~~allegations that~~allegations. Any of this litigation could result in the Company incurring losses in excess of policy limits. The Company typically is a party to a variety of litigation matters throughout the year. Litigation is subject to inherent uncertainties, and if there were an outcome unfavorable to the Company, there exists the possibility of a material adverse impact on its results of operations and financial position in the period in which the outcome occurs. Even if an unfavorable outcome does not materialize, the Company still may face substantial expense and disruption associated with the litigation.

The Company competes with a large number of companies in the insurance industry for premium revenues.

Each of the Company's lines of continuing insurance business is highly competitive and is likely to remain so for the foreseeable future. The Company faces competition from specialty insurance companies, underwriting agencies and intermediaries, as well as diversified financial services companies that are significantly larger than ~~it is~~the Company and that have significantly greater financial, marketing, management, and other resources. The Company may also face competition from new sources of capital such as institutional investors seeking access to the insurance market, sometimes referred to as alternative capital, which may depress pricing or limit the Company’s opportunities to write business. The emergence of ~~insurtech~~Insurtech companies and other companies that may seek to write business without the appropriate regard for risk and profitability may lead to increased competition for premiums. All of these increases in competition threaten to reduce demand for the Company’s insurance products, reduce its market share and growth prospects, and potentially reduce the Company’s premium revenues and profitability.

If the Company’s investments in new underwriting subsidiaries are unsuccessful, the Company’s expectations for top- and bottom-line growth may not be met.

A significant component of the Company’s growth strategy includes the successful investment in new specialized insurance businesses focused on specialty niches. The Company makes upfront investments to build these new ventures and additional expenditures are required to support them as they seek to grow to scale. These new underwriting subsidiaries may not meet the Company's growth and profitability targets, and given the start-up nature

of these new businesses, there is a risk that the Company could suffer the loss of all or a significant portion of its capital investments.

In addition, these new businesses are exposed to risks and challenges that could cause the Company's overall growth projections to differ materially from expectations. These risks include, but are not limited to: the loss of one or more key employees, challenges in building new information technology (IT) systems and/or integrating new systems with existing IT systems, and difficulty in underwriting and managing exposures to new products and new markets, which may change the Company’s overall risk exposure. In addition, changing market conditions in these new business lines could also lead to growth and profitability expectations not being met. These challenges could negatively impact the Company's results in the near term, and if the investment in these subsidiaries is not successful, the Company’s results of operations and financial condition could be materially and adversely affected.

If the Company is unable to keep pace with the technological advancements in the insurance industry, its ability to compete effectively could be impaired.

The Company’s operations rely upon complex and expensive ~~information technology~~IT systems for interacting with policyholders, brokers and other business partners. The pace at which information systems must be upgraded is continually increasing, requiring an ongoing commitment of significant resources to maintain or upgrade to current standards. Many of the Company’s operating subsidiaries maintain separate IT systems. The Company will need to continue to develop and maintain ~~information technology~~IT systems that will allow its insurance subsidiaries to compete effectively. The development of new technologies may result in the Company being competitively disadvantaged if it is unable to upgrade its systems in a timely manner. If the Company is unable to keep pace with the advancements being made in technology, the Company’s ability to compete with other insurance companies that have more advanced technological capabilities will be negatively affected. Further, if the Company is unable to effectively update or replace its key legacy technology systems as they become obsolete or as emerging technology renders them competitively inefficient, the Company’s competitive position and its cost structure could be adversely affected.

Old Republic is subject to extensive governmental regulation, and if the Company fails to comply with these regulations, it can be subject to penalties, including fines and suspensions, which may adversely affect the Company’s realization of its business objectives as well as its financial condition, results of operations, and reputation.

Most insurance regulations are designed to protect the interests of policyholders rather than shareholders and other investors. These regulations are generally administered by a department of insurance in each state and territory in which the Company does business, and relate to, among other things, policy forms, premium rates, capital requirements, licensing, investments, policy limits, accounting methods, and reserving.

State insurance departments also conduct periodic examinations of the conduct and affairs of insurance companies and require the filing of annual, quarterly, and other reports relating to financial condition, holding company issues, and other matters. At any given time, governmental agencies are examining or investigating certain of the Company’s operations. These include examinations or investigations of market conduct, competitive practices, and other regulatory compliance matters. Changes in the level of regulation of the insurance industry or changes in laws or regulations themselves or interpretations by governmental or regulatory authorities could adversely affect the Company’s ability to operate its business as currently conducted and adversely affect or inhibit Old Republic’s ability to achieve some or all of its business objectives.

Regulatory authorities have relatively broad discretion to deny or revoke licenses for various reasons, including

the violation of regulations. In some instances, the Company follows practices based on its interpretations of regulations or practices that it believes may be generally followed by the industry. These practices may turn out to be different from the interpretations of regulatory authorities. If the Company does not have the requisite licenses and approvals or does not comply with applicable regulatory requirements, insurance regulatory authorities could initiate investigations or other proceedings, fine the Company, preclude or temporarily suspend the Company from carrying on some or all of its activities, or otherwise penalize the Company. ~~This~~Any of these outcomes could adversely affect the Company’s ability to operate its business.

In addition to regulations specific to the insurance industry, as a public company, Old Republic is also subject to the rules and regulations of the Securities and Exchange Commission and the New York Stock Exchange, ~~(NYSE),~~ each of which regulate many areas such as financial and business disclosures, corporate governance, and shareholder matters. Old Republic is also subject to the corporation laws of Delaware, its state of incorporation. At the federal level, among other laws, the Company is subject to the Sarbanes-Oxley Act and the Dodd-Frank Act, each of which regulate corporate governance, executive compensation and other areas, as well as laws relating to federal trade restrictions, privacy/data security and terrorism risk insurance laws. The Company monitors these laws, regulations, and rules to assess the Company’s compliance and make appropriate changes as necessary. Implementing such changes may require adjustments to the Company’s business methods, increases to its costs, and other changes that could cause the Company to be less competitive in the industry.

Climate Change could have a material adverse effect on Old Republic’s business and investments.

Old Republic is primarily involved in the commercial liability, risk management, and title insurance businesses. The Company believes the impact of climate change will not materially affect its Title Insurance business as title insurance does not provide property or liability coverage, but rather protects against defects in title ownership. With

regard to its liability insurance business, it is mostly concentrated in workers’ compensation and vehicle liability insurance. The Old Republic property and casualty insurance companies utilize recognized catastrophic modeling resources and reinsurance coverage to mitigate risk. Additionally, its underwriting risk is mostly subjected to re-pricing on an annual basis; therefore, to the extent that climate change may impact the number and severity of losses for Old Republic’s policyholders and clients, that impact would likely be long-term in nature and would be considered in Old Republic’s normal pricing and underwriting process.

As an insurance organization, Old Republic has a large investment portfolio of which a significant portion consists of fixed rate income investments that have an average term to maturity of under five years. While the Company believes its portfolio is well diversified, it has a significant amount invested in electric utilities and in the natural gas exploration and distribution industry. Many of these investments are for relatively short terms and some are for upgrading coal generation power plants to reduce emissions, for building or upgrading clean energy operations, natural gas or nuclear power plants, or for natural gas exploration, as well as other alternative energy initiatives that are pursued individually by these entities.

If climate change has a significant impact on a specific investment or bond issuer, or the economy in general, investment losses or reduction in premium and fee revenue could potentially occur. In that event, Old Republic would address such issues pursuant to sound business and investment practices.

While Old Republic believes it has taken a reasonable position on the risk of climate change, there can be no assurance that these assumptions or its policies and practices will be sufficient to insulate it from any long-term effects of climate change.

SPECIFIC RISKS RELATING TO GENERAL INSURANCE

Catastrophic losses, including those caused by natural disasters such as earthquakes or man-made events such as terrorist attacks, are inherently unpredictable and could cause the Company to suffer material financial losses.

While the General Insurance segment does not have a meaningful exposure to personal lines insurance such as homeowners ~~or other real property~~and private auto coverages, the property casualty or liability insurance it underwrites creates exposure to claims arising out of catastrophes. The two principal catastrophe exposures are ~~earthquakes~~natural catastrophes and acts of ~~terrorism~~terrorism. As it relates to workers' compensation policies, the exposure is greatest in areas where there are large concentrations of employees of an insured employer or other individuals who could potentially be injured and assert claims against an insured under workers' compensation policies. Collateral damage to property or persons from acts of terrorism and other calamities could also expose general liability policies.

Following the September 11, 2001 terrorist attack, the reinsurance industry eliminated coverage from substantially all reinsurance contracts for claims arising from acts of terrorism. As discussed elsewhere in this report, the U.S. Congress subsequently passed ~~TRIA, TRIREA,~~the Terrorism Risk Insurance Act (TRIA), the Terrorism Risk Insurance Revision and ~~TRIPRA~~Extension Act (TRIREA), and the Terrorism Risk Insurance Program Reauthorization Act (TRIPRA) legislation that required primary insurers to offer coverage for certified acts of terrorism under most commercial property and casualty insurance policies. Although these programs established a temporary federal reinsurance program through December 31, 2027, primary insurers like the Company’s ~~general insurance~~General Insurance subsidiaries retain significant exposure for terrorist act-related losses.

~~Since January 1, 2005,~~Additionally, the Company ~~has maintained maximum~~maintains treaty and facultative reinsurance coverage ~~of up to $200 million~~ for property and workers' compensation exposures. Pursuant to regulatory requirements, however, ~~all workers' compensation~~ primary insurers such as the Company remain liable for unlimited amounts in excess of reinsured limits. Therefore, it is possible that in the event of a catastrophe such as an earthquake that could cause massive property damage or lead to the death or injury of a large number of persons concentrated in a single place, the Company could experience significant non-reinsured losses if the losses exceeded its reinsurance coverage, which could materially and adversely affect the Company’s financial condition and results of operations.

In addition, natural events such as the COVID-19 pandemic can have a particular impact on certain business lines. For example, the General Insurance segment writes workers’ compensation business covering the continuing care industry, which ~~has been~~was adversely affected by the pandemic. The impact of ~~the~~a pandemic on covered individuals in this sector could cause the Company to experience increased claims and losses, which could also materially and adversely affect the Company’s financial condition and results of operations.

~~Current economic conditions could adversely affect the Company’s financial condition and results of operations.~~

Negative trends in employment rates can adversely affect Old Republic’s workers’ compensation business. If the Company’s customers reduce their workforce levels, the level of workers’ compensation insurance coverage they require and, as a result the premiums that the Company charges, would be reduced, and if the customer ceases operations, it will not renew its policy. For example, the pandemic's impact on employment levels, businesses, and other economic activities contributed to a reduction in net written and earned premium and fee revenues in the General Insurance segment for the year ended December 31, 2020. If the pandemic continues unabated, or current economic conditions do not improve, Old Republic could experience future decreases in business activity, which could have an adverse effect on the Company’s financial condition and results of operation.

If the Company is not able to obtain reinsurance on favorable terms, its business, financial condition, and results of operations could be adversely affected.

Reinsurance is a contractual arrangement whereby one insurer (the reinsurer) assumes some or all of the risk exposure written by another insurer (the reinsured). The Company depends on reinsurance to manage its risks ~~both~~ in

terms of the amount of coverage it is able to write, the amount it is able to retain for its own account, and the price at which the Company is able to write it. The availability of reinsurance and its price, however, are generally determined in the reinsurance market by conditions beyond the Company’s control.

Because reinsurance does not relieve the Company of its primary liability to insureds in the event of a loss, the ability of reinsurers to honor their counterparty obligations to the Company represents credit risk. The Company

attempts to mitigate this risk by limiting reinsurance placements to those reinsurers it considers ~~the best credit risks.~~creditworthy. In recent years, however, there has been an ever decreasing number of acceptable reinsurers. There can be no assurance that the Company will be able to find the desired or even adequate amounts of reinsurance at favorable rates from acceptable reinsurers in the future. If unable to do so, the Company would have greater exposure to catastrophic losses and be forced to reduce the volume of business written or retain increased amounts of liability exposure. In either case, any reduction or other changes in the Company’s reinsurance could adversely affect the Company's business, results of operations, and financial condition.

Losses due to defaults by insureds with which the Company has entered into ~~risk sharing~~risk-sharing arrangements could adversely affect its profitability.

A significant amount of Old Republic's liability and workers' compensation business, particularly for large commercial insureds, is written on the basis of ~~risk sharing~~risk-sharing underwriting methods. These methods may include the use of large deductibles, captive insurance risk retentions, or other arrangements by which the insureds effectively retain and fund all or a portion of the ~~losses~~loss experience. An insured’s financial strength and ability to pay are carefully evaluated as part of the underwriting process and monitored periodically thereafter. In addition, the exposure retained by an insured is estimated and collateralized based on a credit analysis and evaluation. Because the Company is primarily liable for losses incurred under its policies, the failure or inability of insureds to honor their retained liability represents a credit risk. If the Company incorrectly estimates the proper amount of collateral or if there is an impediment to the ~~Company accessing~~Company's ability to access that collateral, it could have a material adverse effect on the General Insurance segment’s ~~profitability,~~ results of operation and financial condition.

SPECIFIC RISKS RELATING TO TITLE INSURANCE

The Title Insurance segment’s products and services and claims experience may suffer as a result of deteriorations in the real estate market.

Demand for the products and services provided by the Title Insurance segment is generally dependent on the strength of the real estate market and the frequency of real estate transactions. If real estate market conditions and real estate values decline, the number of real estate transactions may decrease as a result of high or increasing mortgage interest rates and limited or decreasing availability of credit, including commercial and residential mortgage funding. Historically, increasing foreclosure activity has led to an increase in claims. These factors may adversely affect both net premiums and fees earned and profitability in the segment.

A significant portion of the Title Insurance segment’s business is generated by independent title ~~agents and underwritten insurance companies.~~agents. If this segment’s products and services become less attractive to these independent title agents, or if there is a decrease in the amount of title industry business placed by independent title agents, it could have a material adverse impact on this segment.

For the year ended December 31, ~~2020,~~2023, approximately ~~$2.4~~$2.0 billion or ~~75%~~79.0% of the Title Insurance segment’s consolidated premium and related fee income was produced by independent title agents. The other three large national title insurers generate a higher percentage of their business through employees or owned insurance agencies. Independent title agents can direct business to any title insurer, whereas owned agencies will typically direct business solely to their parent or affiliated title insurers. If the products and services provided by competitors are more attractive to independent title agents, or if the number of, or amount of business produced by, independent title agents decreases, the segment’s business may be adversely affected.

Because independent title agents issue a significant portion of the Title ~~segments~~Insurance segment's policies and operate with substantial independence from the business, the independent operations of these title agents could adversely affect the financial condition and profitability of this segment.

The Title Insurance segment issues a significant portion of its policies through title agents that operate largely independently and without direct supervision. The independent agents typically perform title searches and examinations and make underwriting decisions for which the Title Insurance segment bears the risk. The activities of these independent title agents are governed by contract. While the Title Insurance business has policies to audit and monitor their activities, there is no guarantee that these title agents will fulfill their contractual obligations. For example, an independent agent may issue a policy that is in excess of contractual limits, or the independent title agent may not adhere to required underwriting standards. The Title Insurance segment’s contracts with agents generally limit an agent’s liability for losses. However, under certain circumstances, the segment may be liable to third parties for actions (including defalcations) or omissions of these agents. In certain states a title insurer may be held liable for the actions or omissions of its agents in those states, including instances in which the insurer has issued a closing protection letter, regardless of contractual limitations imposed on an agent’s ~~activities.~~actions. A closing protection letter indemnifies the lender and borrower against losses relating to the status of title arising from certain actions of the agent. As a result, the use of independent title agents could result in increased claims and ~~an increase in~~ other costs and expenses.

Regulation of title insurance rates could adversely affect the Title Insurance segment.

Title insurance rates are subject to extensive regulation, which varies from state to state. In many states the approval of the applicable state insurance regulator is required prior to implementing a rate change. These regulations could hinder the Title Insurance segment’s ability to promptly adapt to changing market dynamics through price adjustments, which could adversely affect its results of operations, particularly in a rapidly declining market.

~~Florida represents approximately 19% of the~~

The Title ~~segment consolidated premium and related fee income, respectively. The Title~~Insurance segment’s business may be adversely affected by business or regulatory conditions that disproportionately affect Florida.

Florida is the largest source of revenue for the Title Insurance segment. In the aggregate in ~~2020,~~ 2023, Florida accounted for approximately ~~19%~~24% of total segment consolidated premium and related fee income. As a result of the significant income ~~associated with~~derived from customers in this state, the Title Insurance segment is exposed to adverse business or regulatory conditions that significantly or disproportionally affect ~~this state.~~Florida. For example, a declining business climate or real estate market that is localized in ~~this state~~Florida could have an adverse effect on the segment’s results of operations. Adverse regulatory developments, including reductions in rates or increased regulatory or capital requirements in ~~this state~~Florida could similarly adversely affect the segment’s business, financial condition, and results of operations.

~~Because the Company does not obtain reinsurance on certain large commercial title policies, a~~A title failure or other claim on ~~such~~ a large commercial title policy could adversely affect the Title Insurance segment and the Company.

The Title Insurance segment’s commercial business involves the issuance of title policies on commercial properties. Policies insuring title on large commercial properties (or aggregations of many smaller properties) may have policy exposure extending into the hundreds of millions of dollars. Historically, the segment has not obtained reinsurance on its large commercial policies. Given the large policy limits, a significant loss on one of these policies ~~would~~could have a material adverse effect on the Title Insurance segment and the Company.

SPECIFIC RISKS RELATING TO THE ~~RFIG-RUNOFF~~RFIG RUN-OFF SEGMENT

~~A failure to adequately reserve~~Inadequate reserves for losses could ~~materially adversely affect~~have a material adverse effect on the RFIG Run-off segment.

The Company establishes reserves for losses and loss adjustment expenses for its RFIG Run-off segment based upon loans reported by mortgage servicers to be in default, as well as estimates of those in default but not yet reported. The reserves are best estimates by management and take into consideration many variables, including the number of reported defaults, the payment status of those defaults, the segment’s historical loss data, and management’s assumptions and expectations regarding future trends in housing and mortgage markets, unemployment rates, and the economy in general.

Estimating reserves for mortgage guaranty exposures is an inherently uncertain process insofar as it is based on information reported by third parties and is subject to changes in economic conditions ~~which~~that could have a material impact on ultimate losses and loss adjustment expenses. See “Old Republic’s loss reserves are based on estimates and if its loss reserves prove to be inadequate to cover its actual insured losses, Old Republic’s business, financial condition and results of operations could be adversely affected” above.

~~Claim~~Loss reserve estimates for the RFIG Run-off segment rely on the accuracy and timeliness of information provided by mortgage servicers with regards to the number and payment status of mortgage loans in default. Inaccuracies or delays in the reporting of default information could adversely affect the level of carried reserves or the timing in which such reserves or changes therein are recorded. ~~With regard to changes~~Changes in economic trends and conditions, periods of sustained economic distress such as those experienced during the Great Recession of 2007-2012 or, more recently, by the adverse economic effects of the COVID-19 pandemic, subject estimates of loss reserves to an even greater degree of uncertainty and volatility.

The Coronavirus Aid, Relief, and Economic Security Act of 2020 (the CARES Act) introduced foreclosure moratoriums and established a forbearance option for borrowers suffering hardships induced by the pandemic. The RFIG Run-off segment loss reserves take into account expectations regarding the potential mitigating effects of the foreclosure moratoriums and loan forbearance provisions of the CARES Act and other loss mitigation programs implemented by mortgage servicers and governmental agencies which have oversight over mortgage servicing. The impact of the CARES Act or similar loss mitigation programs and efforts on the segment’s ultimate claim costs is unknown and will likely depend on the duration and severity of the pandemic.

As a result of these risk factors, the rate and severity of actual losses could prove to be greater than expected and could require the Company to effect substantial increases in ~~its~~RFIG Run-off segment loss reserves. Depending upon the magnitude, such increases could have a material adverse impact on the segment’s capital position and the Company's consolidated results of operations and financial condition. There can be no assurance that the actual losses for the RFIG Run-off segment will not be materially greater than previously established loss reserves.

On November 11, 2023, a definitive agreement was reached to sell the RFIG Run-off mortgage insurance business, including the asset portfolio and reserves, to Arch U.S. MI Holdings Inc., a subsidiary of Arch Capital Group Ltd., with the sale expected to close in the first half of 2024, subject to customary closing conditions, regulatory approvals, and other contingencies. The pending divestiture was disclosed in a Form 8-K filed on November 13, 2023.

Item 1B - Unresolved Staff Comments

None

Item 1C - Cybersecurity

Old Republic depends upon technology-based information systems to conduct business. The Company uses computer systems and other electronic information resources, including both proprietary and third-party technology systems and tools, to process, transmit, receive, and store certain personal, confidential, and proprietary information; to communicate withcustomers, service providers, and other third parties by email and other electronic means; and perform various business operations, including transferring significant amounts of funds.

The Company’s systems and processes have been, and will likely remain, subject to cyber threats and cyber-attacks and other intrusions. These threats and attacks are occurring with greater frequency and sophistication, and include malware and computer virus attacks, ransomware, unauthorized access, misuse, denial-of-service attacks, system failures and disruptions. While these cyber threats and attacks have not resulted in a material adverse effect on the Company, a future cyber incident involving breach of the Company’s information systems or the information

systems of a third-party vendor or services provider could adversely affect the Company’s business strategy, results of operations or financial condition by exposing the Company to substantial costs and negative consequences, including the loss of funds, costs of investigation and remediation, lost revenues and reputational damage.

Old Republic dedicates significant resources across the enterprise to regularly monitor its networks, infrastructure and procedures in an effort to prevent, detect, address and mitigate these risks. The Company’s Chief Information Security Officer (CISO) oversees the Company’s enterprise cybersecurity strategy while the Company’s Chief Executive Officer (CEO) retains primary responsibility for managing enterprise-wide risks, including those related to cybersecurity. The Company’s Board of Directors’ oversight responsibilities include ascertaining that appropriate policies and practices are in place for managing the identified risks faced by the enterprise, and, as discussed below, the Audit Committee of the Board of Directors has oversight authority over data protection and cybersecurity risk exposure. The Company’s CISO has more than 26 years of experience in the field of information technology and security, comprised of six years in the U.S. Defense Industry and 20 years in the civilian sector. The CISO has a bachelor’s degree in computer studies and is an EC-Council Certified Chief Information Security Officer, as well as a member of ISACA (formerly known as the Information Systems and Audit and Control Association) and the governing bodies for the Evanta National CISO community and the Evanta Regional (Dallas, Texas) CISO community.

Each Old Republic operating subsidiary maintains its own security program based on its particular risk, applicable insurance industry requirements, and mandates and guidance from the CISO and enterprise-wide security advisory team. These programs encompass asset protection, threat identification, monitoring, timely response procedures, containment and recovery measures, and internal escalation procedures. An enterprise-wide information technology team consisting of a working group of information technology leaders representing all operating subsidiaries meets regularly for the review and monitoring of and updates to information security business processes due to significant changes in operating environments, statutory or regulatory changes or changing or emerging threats. Operating subsidiaries are required to report certain cyber incidents based on documented severity classification to the enterprise-wide information technology team. This team consists of key information technology personnel, including the CISO and the Chief Information Officer (CIO). They are responsible for overseeing incident response and escalation to the Company’s General Counsel and Chief Financial Officer (CFO) when necessary. As part of the Company’s overall risk management strategy, the General Counsel, CFO, and CIO, in consultation with the CEO, navigate escalated incidents for law enforcement and other external engagements and assess the impact and materiality of such incidents on the Company’s enterprise-wide business.

While exact practices vary depending on each operating subsidiary’s particular business and risk, risk assessments performed at the enterprise-level and subsidiary level generally incorporate threat and vulnerability analyses and consider mitigations provided by in-place security controls. These procedures are intended to identify and assess internal and external cybersecurity risks that may threaten the security or integrity of nonpublic information stored on the Company’s information systems by use of defensive infrastructure and the implementation of policies and procedures to protect the Company’s information systems from unauthorized access, use or other malicious acts.

When engaging third-party vendors, operating subsidiaries are directed to use cybersecurity screening and risk assessment measures and to include appropriate data security privacy terms and conditions in vendor agreements, including, as necessary for certain vendors, a duty to report certain security incidents to the Company’s information technology team. Third-party engagement procedures generally include (1) the identification and risk assessment of third-party service providers; (2) minimum cybersecurity practices required to be met by such third-party service providers in order for them to do business with the Company; (3) due diligence processes used to evaluate the adequacy of cybersecurity practices of such third-party service providers; and (4) periodic assessment of such third-party service providers based on the risk they present and the continued adequacy of their cybersecurity practices.

Third-party cybersecurity consultants are periodically retained by the Company to conduct targeted security control assessments, and to review the Company’s security policies, standards, procedures, and controls, when applicable. Annual third-party penetration testing is used to simulate cyber-attacks and to identify potential vulnerabilities. The Company subscribes to paid third-party threat intelligence services that provide real-time information on emerging threats. The Company engages security platform partners to provide advisory services related to security technologies and practices.

At the holding company level, Old Republic employs security awareness and training initiatives to inform associates about their role in cybersecurity risk mitigation.

The Audit Committee of the Company’s Board of Directors has oversight authority to review the Company’s data protection and cybersecurity risk exposure and the steps management has taken to assess and respond to the overall threat landscape, including the strategy management implemented to mitigate the Company’s cyber risk exposure. The CISO and CIO report to the Audit Committee on current data protection and cybersecurity matters quarterly, and as may otherwise be needed. The CISO is authorized to report directly to the Audit Committee on the Company’s security program and status of cybersecurity risk management efforts. The Chair of the Audit Committee reports these matters, as appropriate, to the Board of Directors.

Item 2 - Properties

The principal executive offices of the Company are located in the Company-owned Old Republic Building in Chicago, Illinois. In addition to its Chicago building, the Company owns one other major office building. A subsidiary of the Title Insurance Group owns and partially occupies its operations headquarters building in Minneapolis, Minnesota. Certain smaller buildings are owned by Old Republic and its subsidiaries in various parts of the nation and are primarily used for its business.

Other operations of the Company and its subsidiaries are directed from leased premises. See Note ~~4(b) of~~14 in the Notes to Consolidated Financial Statements for a summary of all material lease obligations.

Item 3 - Legal Proceedings

Legal proceedings against the Company and its subsidiaries routinely arise in the normal course of business and usually pertain to claim matters related to insurance policies and contracts issued by its insurance subsidiaries. At December 31, ~~2020,~~2023, the Company had no material non-claim litigation exposures in its consolidated business.

Item 4 - Mine Safety Disclosures

Not applicable.

PART II

Item 5 - Market for the Registrant's Common Equity, Related Security Holder Matters and Issuer Purchases of Equity Securities

The Company's common stock is traded on the New York Stock Exchange under the symbol "ORI". As of January 31, ~~2021,~~2024, there were ~~2,090~~1,924 registered holders of the Company's Common Stock. See Note ~~3(c) of~~12 in the Notes to Consolidated Financial Statements for a description of certain regulatory restrictions on the payment of dividends by Old Republic's insurance subsidiaries.

Comparative ~~Five Year~~Five-Year Performance Graphs for Common Stock

The following table, prepared on the basis of market and related data furnished by Standard & Poor's (S&P) Total Return Service, reflects total market return data for the most recent five calendar years ended December 31, ~~2020.~~2023. For purposes of the presentation, the information is shown in terms of $100 invested at the close of trading on the last trading day preceding the first day of the fifth preceding year. The $100 investment is deemed to have been made either in Old Republic Common Stock, in the S&P 500 Index of common stocks, or in an aggregate of the common shares of the Peer Group of publicly held insurance businesses selected by Old Republic. The cumulative total return assumes reinvestment of cash dividends on a pretax basis. The information utilized to prepare the following table has been obtained from sources believed to be reliable, but no representation is made that it is accurate or complete in all respects.

Comparison of ~~Five Year~~Five-Year Total Market Return

OLD REPUBLIC INTERNATIONAL CORPORATION vs. S&P 500 vs. Peer Group

(For the five years ended December 31, ~~2020)~~2023)

Dec 15 Dec 16 Dec 17 Dec 18 Dec 19 Dec 20
ORI $ 100.00 $ 106.21 $ 124.13 $ 130.15 $ 153.25 $ 141.53
S&P 500 100.00 111.96 136.40 130.42 171.49 203.04
Peer Group 100.00 112.86 125.93 107.33 137.21 127.18


	Dec. 2018		Dec. 2019		Dec. 2020		Dec. 2021		Dec. 2022		Dec. 2023
ORI	$	100.00	$	117.75	$	108.75	$	157.60	$	168.12	$	212.37
S&P 500	100.00		131.49		155.68		200.37		164.08		207.21
Peer Group	100.00		127.84		118.49		159.41		176.68		188.69

The Peer Group ~~which~~ has been approved by the Compensation Committee of the Company's Board of Directors and consists of the following publicly held corporations with which the Company competes in various regards: American Financial Group, Inc., American International Group, Inc., W.R. Berkley Corporation, Chubb Limited, Cincinnati Financial Corporation, CNA Financial Corporation, Fidelity National Financial, Inc., First American Financial Corporation, The Hartford Financial Services Group, Inc., Stewart Information Services Corporation, and The Travelers Companies, Inc.

Purchase of Equity Securities

The following table summarizes share repurchase activity for the three months ended December 31, 2023:


Period	Total Number of Shares Purchased (a)	Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Plan	Approximate Dollar Value of Shares That May Yet be Purchased Under the Plan ($ in Millions)
October 1 - October 31, 2023	2,064,666	$	26.87	2,064,666	$	83.4
November 1 - November 30, 2023	—	$	—	—	$	83.4
December 1 - December 31, 2023	—	$	—	—	$	83.4
Total	2,064,666	$	26.87	2,064,666	$	83.4

__________

(a) On May 12, 2023, the Company announced a share repurchase program authorizing the repurchase of up to an additional $450 million in shares of the Company's common stock. The repurchase program was intended to comply with Rule 10b-18 and had no expiration date, did not require the purchase of any minimum number of shares and could be suspended, modified or discontinued at any time without prior notice. Following the close of the year and through February 20, 2024, the Company repurchased 2.9 million additional shares for $83.1 million (average price of $28.33), completing its repurchase program under the authorization.

Item 6 - Selected Financial Data ($ in millions, except share data)
December 31: 2020 2019 2018 2017 2016
FINANCIAL POSITION:
Cash and Invested Assets (a) $ 15,535.3 $ 14,527.4 $ 13,187.4 $ 13,536.4 $ 12,995.8
Other Assets 7,279.9 6,548.9 6,139.6 5,867.1 5,595.7
Total Assets $ 22,815.2 $ 21,076.3 $ 19,327.1 $ 19,403.5 $ 18,591.6
Liabilities, Other than Debt $ 15,662.0 $ 14,102.1 $ 13,199.4 $ 13,221.5 $ 12,602.2
Debt 966.4 974.0 981.4 1,448.7 1,528.7
Total Liabilities 16,628.5 15,076.1 14,180.8 14,670.2 14,130.9
Preferred Stock — — — — —
Common Shareholders' Equity 6,186.6 6,000.1 5,146.2 4,733.3 4,460.6
Total Liabilities and Shareholders' Equity $ 22,815.2 $ 21,076.3 $ 19,327.1 $ 19,403.5 $ 18,591.6
Total Capitalization (b) $ 7,153.1 $ 6,974.2 $ 6,127.6 $ 6,182.0 $ 5,989.4
Years Ended December 31: 2020 2019 2018 2017 2016
RESULTS OF OPERATIONS:
Net Premiums and Fees Earned (e) $ 6,737.8 $ 6,241.1 $ 5,940.9 $ 5,769.1 $ 5,537.5
Net Investment and Other Income 570.2 583.3 553.5 511.7 494.3
Investment Gains (Losses) (c) (142.0) 636.1 (235.6) 211.6 72.8
Net Revenues (e) 7,166.0 7,460.5 6,258.8 6,492.4 6,104.7
Benefits, Claims, and
Settlement Expenses 2,491.4 2,572.7 2,460.7 2,478.8 2,347.9
Underwriting and Other Expenses (e) 3,986.1 3,565.4 3,359.9 3,288.1 3,070.8
Pretax Income (Loss) 688.4 1,322.4 438.1 725.4 686.0
Income Taxes (Credits) 129.7 265.9 67.5 164.8 219.0
Net Income (Loss) $ 558.6 $ 1,056.4 $ 370.5 $ 560.5 $ 466.9
COMMON SHARE DATA:
Net Income (Loss):
Basic $ 1.87 $ 3.52 $ 1.26 $ 2.14 $ 1.80
Diluted $ 1.87 $ 3.51 $ 1.24 $ 1.92 $ 1.62
Dividends: Cash (d) $ 1.84 $ 1.80 $ .78 $ 1.76 $ .75
Book Value $ 20.75 $ 19.98 $ 17.23 $ 17.72 $ 17.16
Common Shares (thousands):
Outstanding 304,122 303,652 302,714 269,238 262,719
Average: Basic 298,407 299,885 294,248 262,114 259,429
Diluted 298,898 301,227 301,016 299,387 296,379

~~__________~~

~~(a)Consists of cash, investments and accrued investment income.~~

~~(b)Total capitalization consists of debt, preferred stock, and common shareholders' equity.~~

~~(c) Effective January 1, 2018, includes unrealized gains and losses from changes in fair value of equity securities.~~

(d) In December 2020, the Board declared a special cash dividend of $1.00 per share payable on January 15, 2021. In September 2019, the Company paid a special cash dividend of $1.00 per share. In late December 2017, the Board declared a special cash dividend of $1.00 per share which was paid on January 31, 2018.

(e) Reclassification adjustments were made to certain Title segment revenues and expenses in prior periods to conform to the presentation adopted in 2020. See Note 1(c) to the accompanying Notes to Consolidated Financial Statements.

Item 7 - Management Analysis of Financial Position and Results of Operations

($ in Millions, Except Share Data)


OVERVIEW

This management analysis of financial position and results of operations pertains to the consolidated accounts of Old Republic International Corporation ("Old Republic", "ORI", or "the Company"). The Company conducts its operations ~~principally~~ through a number of regulated insurance company subsidiaries organized into three ~~major regulatory segments, namely, its~~segments: General Insurance (property and ~~liability)~~liability insurance), Title Insurance, and Republic Financial Indemnity Group (RFIG) Run-off. On November 11, 2023, a definitive agreement was reached to sell the RFIG Run-off ~~Business.~~mortgage insurance business to Arch U.S. MI Holdings Inc., a subsidiary of Arch Capital Group Ltd., with the sale expected to close in the first half of 2024 (see Note 2 in the Notes to Consolidated Financial Statements for further discussion). A small life and accident insurance business, accounting for ~~.2%~~0.2% of consolidated operating revenues for the year ended December 31, ~~2020~~2023, and ~~.6%~~0.4% of consolidated assets as of that date, is included within the ~~corporate and other~~Corporate & Other caption of this report.

The consolidated accounts are presented in conformity with the Financial Accounting Standards ~~Board's ("FASB")~~Board (FASB) Accounting Standards Codification ~~("ASC")~~(ASC) of accounting principles generally accepted in the United States of America ~~("GAAP")~~(GAAP). As a publicly held company, Old Republic utilizes GAAP ~~largely~~ to comply with the financial reporting requirements of the Securities and Exchange Commission ~~("SEC")~~(SEC). From time to time the FASB and the SEC issue various releases, most of which require additional financial statement disclosures and provide related application guidance. ~~Of particular relevance to the Company's financial statements is~~Recent guidance ~~recently~~ issued by the FASB relative to recognition and measurement of financial instruments including the addition of equity security unrealized gains and losses in periodic income statements, lease accounting, and accounting for credit losses on financial instruments, all of which are discussedis summarized further in the Notes to Consolidated Financial ~~Statements.~~Statements where applicable.

As a state regulated financial institution vested with the public interest, however, business of the Company's insurance subsidiaries is managed pursuant to the laws, regulations, and accounting practices of the various states in the U.S. and those of a small number of other jurisdictions outside the U.S. in which they operate. In comparison with GAAP, the statutory accounting practices generally reflect greater conservatism and comparability among insurers and are intended to address the primary financial security interests of policyholders and their beneficiaries. Additionally, these practices also affect a significant number of important factors such as product pricing, risk bearing capacity and capital adequacy, the determination of Federal income taxes payable currently among ORI's tax-consolidated entities, and the upstreaming of dividends and payment of interest and principal on surplus notes by insurance subsidiaries to the parent holding company. The major differences between these statutory ~~financial~~ accounting practices and GAAP are summarized in Note ~~1(a)~~1 in the Notes to ~~the consolidated financial statements included elsewhere in this report.~~Consolidated Financial Statements.

The insurance business is distinguished from most others in that the prices (premiums) charged for ~~various insurance~~most products are set without ~~certainty of~~knowing what the ultimate ~~benefit and claim~~loss costs ~~that~~ will ~~emerge, often~~be. The Company also cannot know exactly when claims will be paid, which may be many years after ~~issuance and expiration of~~ a ~~policy.~~policy was issued or expired. This ~~basic fact~~ casts Old Republic as a risk-taking enterprise managed for the long run. ~~Management~~Old Republic therefore conducts ~~the~~its business with a primary focus on achieving favorable underwriting results over cycles, and on ~~the maintenance of~~maintaining a sound financial ~~soundness in~~condition to support ~~of the insurance~~its subsidiaries' long-term obligations to policyholders and their beneficiaries. To achieve these objectives, adherence to insurance risk management principles is stressed, and asset diversification and quality are emphasized. In addition, ~~Management~~management engages in an ongoing assessment of operating risks, such as cybersecurity risks, that could adversely affect the Company's business and reputation.

In addition to income arising from Old Republic's basic underwriting and related services functions, significant investment income is earned from invested funds generated by those functions and from capital ~~resources.~~required to support the risk of the underlying business. Investment management aims for stability of income from interest and dividends, protection of capital, and for sufficiency of liquidity to meet insurance underwriting and other obligations as they become payable in the future. Securities trading and the realization of capital gains are not primary objectives. The investment philosophy is therefore best characterized as emphasizing value, credit quality, and relatively long-term holding periods. The Company's ability to hold both fixed ~~maturity~~income and equity securities for long periods of time is ~~in turn~~ enabled by the scheduling of maturities in contemplation of an appropriate matching of assets and liabilities, and by investments in dividend paying, publicly traded, large capitalization, highly liquid equity securities.

In light of the above factors, the ~~Company's affairs are~~Company is managed for the long run and ~~without significant~~with little regard ~~to the arbitrary strictures of~~for quarterly or even annual reporting ~~periods that American industry must observe. In Old Republic's view, such short reporting~~periods. These time frames ~~do not comport well with the long-term nature of much of its business.~~are too short. Management ~~therefore~~ believes ~~that the Company's operating~~ results ~~and financial condition can~~are best be evaluated by ~~observing~~looking at underwriting and overall operating performance trends over ~~succeeding five-~~10-year intervals. These likely include one or ~~preferably ten-year intervals. A ten-year period in particular can likely encompass at least one~~two economic and/or underwriting ~~cycle and thereby provide an appropriate~~cycles. This provides enough time ~~frame~~ for ~~such cycle~~these cycles to run ~~its~~their course, ~~and~~ for premium rate changes and subsequent underwriting results to be reflected in financial statements, and for reserved ~~claim~~loss costs to be quantified ~~and emerge in financial results~~ with greater ~~finality and effect.~~certainty.

This management analysis should be read in conjunction with the consolidated financial statements and the footnotes appended to them.

2724


EXECUTIVE SUMMARY

Commentary within this Executive Summary provides management’s high level overview with a focus on current period results as compared to the immediately preceding year. For additional detail on these trends and all comparative year periods presented, refer to the detailed management analysis that follows.

Old Republic International Corporation reported the following consolidated results:

OVERALL RESULTS
Years Ended December 31: 2020 2019 2018
Pretax income (loss) $ 688.4 $ 1,322.4 $ 438.1
Pretax investment gains (losses) (142.0) 636.1 (235.6)
Pretax income (loss) excluding investment gains (losses) $ 830.4 $ 686.2 $ 673.7
Net income (loss) $ 558.6 $ 1,056.4 $ 370.5
Net of tax investment gains (losses) (112.1) 502.2 (185.9)
Net income (loss) excluding investment gains (losses) $ 670.8 $ 554.2 $ 556.4
PER DILUTED SHARE
Years Ended December 31: 2020 2019 2018
Net income (loss) $ 1.87 $ 3.51 $ 1.24
Net of tax investment gains (losses) (.37) 1.67 (.62)
Net income (loss) excluding investment gains (losses) $ 2.24 $ 1.84 $ 1.86
SHAREHOLDERS' EQUITY
December 31: 2020 2019
Shareholders' equity: Total $ 6,186.6 $ 6,000.1
Per Common Share $ 20.75 $ 19.98

Growth in 2020's net income, exclusive of all investment gains and (losses) was driven by greater profitability in both the General and Title Insurance segments. Overall, the business produced a consolidated combined ratio of 93.3%, improved from 95.3% and 94.9% registered in 2019 and 2018, respectively. Total and per share net income continue to be significantly impacted by changes in the fair value of equity securities.


OVERALL RESULTS

Years Ended December 31:	2023			2022			2021
Pretax income	$	747.4		$	857.4		$	1,922.1
Pretax investment gains (losses)	(190.9)			(201.1)			758.0
Pretax income excluding investment gains (losses)	$	938.4		$	1,058.6		$	1,164.0

Net income	$	598.6		$	686.4		$	1,534.3
Net of tax investment gains (losses)	(150.8)			(158.6)			598.4
Net income excluding investment gains (losses)	$	749.5		$	845.1		$	935.9

Combined ratio	92.6		%	91.0		%	89.9		%

PER DILUTED SHARE

Years Ended December 31:	2023			2022			2021
Net income	$	2.10		$	2.26		$	5.05
Net of tax investment gains (losses)	(0.53)			(0.53)			1.97
Net income excluding investment gains (losses)	$	2.63		$	2.79		$	3.08

SHAREHOLDERS' EQUITY (BOOK VALUE)

December 31:				2023			2022
Total				$	6,410.7		$	6,173.2
Per Common Share				$	23.31		$	21.07

The ~~COVID-19 pandemic and~~Company reported pretax income, excluding investment losses (pretax operating income), of $938.4 for 2023. Title Insurance pretax operating income declined for the associated governmental responses continued to have a widespread impact on the U.S. economy. A majority of Old Republic's approximately 9,000 associates are working remotely. The pandemic's impact on employment levels, businesses, and other economic activities contributed to a slight reduction in earned premiums in thefull year, while General Insurance ~~segment.~~ pretax operating income was higher.

Results for the year ended December 31, 2023 are summarized as follows:

•The consolidated combined ratio was 92.6%.

•Consolidated net premiums and fees earned decreased 12.6%. The continued decline in Title Insurance ~~segment experienced~~net premiums and fees earned was partially offset by strong growth in ~~premium~~General Insurance.

•Net investment income increased 25.8% driven by higher investment yields earned.

•Favorable loss reserve development improved the combined ratio by 4.6 percentage points.

•Total capital returned to shareholders was $806, comprised of $276 in dividends, and ~~fee revenues. The RFIG Run-off business produced~~$530 of share repurchases.

•Book value per share grew to $23.31, a ~~small underwriting loss due to elevated delinquencies and the continuing decline in net earned premiums.~~15.3% increase, inclusive of dividends.

Net investment income decreased in 2020 as the ongoing moderate growth in the invested asset base was more than offset by lower investment yields whereas 2019 investment income growth was fueled by higher dividends on equity securities. Financial market performance experienced significant volatility and reductions in market values in the last several weeks of 2020's first quarter, but continued to improve throughout the remainder of the year. The favorable valuation of the investment portfolio, coupled with positive earnings, outpaced cash dividends to shareholders, resulting in book value per share rising to $20.75 at December 31, 2020 compared to $19.98 at December 31, 2019.

The economic impacts from the COVID-19 pandemic could affect future premium and fee revenues in the General Insurance and Title Insurance segments, and conversely underwriting expense ratios could rise. In the RFIG Run-off business, future claims experience could depend upon the continued, mitigating effects of loan forbearance programs mandated by the Federal government, and the rate at which employment levels recover. These outcomes notwithstanding, management firmly believes that the Company’s strong financial condition will enable it to weather these challenges, and most importantly allow its insurance subsidiaries to meet their obligations to customers, policyholders and their beneficiaries.

Old Republic's business is ~~necessarily~~ managed for the long run. In this context management's key objectives are to achieve ~~a continuous, long-term improvement in~~highly profitable operating results over the long term, and to ensure balance sheet strength for the ~~primary needs of the~~ insurance underwriting subsidiaries' ~~underwriting and related services business. In this view,~~obligations. Therefore, the evaluation of periodic and long-term results excludes consideration of all investment gains ~~and~~ (losses). Under GAAP, however, net income, ~~(loss), which includes all specifically defined realized and unrealized~~inclusive of investment gains ~~and~~ (losses), is the measure of total profitability.

In management's opinion, the focus on income ~~(loss)~~ excluding ~~all~~ investment gains ~~and losses~~(losses), also described herein as segment pretax operating income, provides a better way to ~~realistically~~ analyze, evaluate, and establish accountability for the results ~~and benefits that arise from the basic operations~~ of the ~~business.~~insurance operations. The inclusion of realized investment gains ~~and~~ (losses) in net income ~~(loss)~~ can mask ~~the reality and~~ trends in ~~the fundamental~~ operating results, ~~of the insurance business. That is~~ because ~~their realization is, more~~such realizations are often ~~than not,~~ highly discretionary. It is usually affected by such randomly occurring factors as the timing of individual securities sales, tax-planning considerations, and modifications of investment management judgments about the direction of securities markets or the prospects of individual investees or industry sectors. Moreover,Similarly, the inclusion of unrealized investment gains ~~and~~ (losses) in equity securities can further distort such operating results ~~and trends therein and thus lead to even greater~~with significant period-to-period fluctuations in reported net income (loss). The impact of the continuous volatility in stock market valuations is most evident in its net of tax effect on net income (loss) for the periods reported upon.fluctuations.

FINANCIAL HIGHLIGHTS
% Change
2020 2019
Years Ended December 31: 2020 2019 2018 vs. 2019 vs. 2018
SUMMARY INCOME STATEMENTS (a):
Revenues:
Net premiums and fees earned $ 6,737.8 $ 6,241.1 $ 5,940.9 8.0 % 5.1 %
Net investment income 438.9 450.7 431.8 (2.6) 4.4
Other income 131.2 132.6 121.6 (1.0) 9.0
Total operating revenues 7,308.0 6,824.4 6,494.4 7.1 5.1
Investment gains (losses):
Realized from actual transactions 14.2 38.6 58.2
Realized from impairments — (2.0) —
Unrealized from changes in fair value of equity securities (156.2) 599.5 (293.8)
Total investment gains (losses) (142.0) 636.1 (235.6)
Total revenues 7,166.0 7,460.5 6,258.8
Operating expenses:
Claim costs 2,491.4 2,572.7 2,460.7 (3.2) 4.5
Sales and general expenses 3,942.4 3,525.4 3,317.7 11.8 6.3
Interest and other costs 43.7 40.0 42.2 9.1 (5.2)
Total operating expenses 6,477.5 6,138.1 5,820.7 5.5 % 5.5 %
Pretax income (loss) 688.4 1,322.4 438.1
Income taxes (credits) 129.7 265.9 67.5
Net income (loss) $ 558.6 $ 1,056.4 $ 370.5
COMMON STOCK STATISTICS:
Components of net income (loss) per share:
Basic net income (loss) excluding investment gains (losses)
$ 2.24 $ 1.85 $ 1.89 21.1 % (2.1) %
Net investment gains (losses):
Realized from actual transactions and impairments 0.04 0.10 0.16
Unrealized from changes in fair value of equity securities (0.41) 1.57 (0.79)
Basic net income (loss) $ 1.87 $ 3.52 $ 1.26
Diluted net income (loss) excluding investment gains (losses)
$ 2.24 $ 1.84 $ 1.86 21.7 % (1.1) %
Net investment gains (losses):
Realized from actual transactions and impairments 0.04 0.10 0.15
Unrealized from changes in fair value of equity securities (0.41) 1.57 (0.77)
Diluted net income (loss) $ 1.87 $ 3.51 $ 1.24
Cash dividends on common stock (b)
$ 1.84 $ 1.80 $ 0.78
Book value per share $ 20.75 $ 19.98 $ 17.23 3.9 % 16.0 %

(a) Certain reclassification adjustments were made to increase 2019 and 2018 periods' net premiums and fees earned with a corresponding increase to sales and general expenses to conform all prior periods to the presentation adopted in 2020. See Note 1(c) to the accompanying Notes to Consolidated Financial Statements. (b) Includes special cash dividends of $1.00 per share declared in December 2020 and September 2019.


FINANCIAL HIGHLIGHTS
							% Change
							2023		2022
Years Ended December 31:	2023		2022		2021		vs. 2022		vs. 2021
SUMMARY INCOME STATEMENTS:
Revenues:
Net premiums and fees earned	$	6,707.7	$	7,675.3	$	8,003.6	(12.6)	%	(4.1)	%
Net investment income	578.3		459.5		434.3		25.8		5.8
Other income	163.1		149.9		145.6		8.8		3.0
Total operating revenues	7,449.3		8,284.9		8,583.5		(10.1)		(3.5)
Investment gains (losses):
Realized from actual transactions and impairments	(21.4)		62.2		6.9
Realized from pending sale of mortgage insurance business	(45.6)		—		—
Unrealized from changes in fair value of equity securities	(123.9)		(263.4)		751.1
Total investment gains (losses)	(190.9)		(201.1)		758.0
Total revenues	7,258.3		8,083.7		9,341.6
Operating expenses:
Loss and loss adjustment expenses	2,596.6		2,440.2		2,420.9		6.4		0.8
Sales and general expenses	3,843.6		4,719.2		4,942.3		(18.6)		(4.5)
Interest and other charges	70.5		66.7		56.2		5.7		18.7
Total operating expenses	6,510.8		7,226.3		7,419.5		(9.9)	%	(2.6)	%
Pretax income	747.4		857.4		1,922.1
Income taxes	148.7		170.9		387.7
Net income	$	598.6	$	686.4	$	1,534.3


COMMON STOCK STATISTICS:
Components of net income per share:
Basic net income excluding investment gains (losses)	$	2.65	$	2.80	$	3.10	(5.4)	%	(9.7)	%
Net investment gains (losses):
Realized investment gains (losses)	(0.19)		0.17		0.02
Unrealized from changes in fair value of equity securities	(0.34)		(0.69)		1.96
Basic net income	$	2.12	$	2.28	$	5.08
Diluted net income excluding investment gains (losses)	$	2.63	$	2.79	$	3.08	(5.7)	%	(9.4)	%
Net investment gains (losses):
Realized investment gains (losses)	(0.19)		0.16		0.02
Unrealized from changes in fair value of equity securities	(0.34)		(0.69)		1.95
Diluted net income	$	2.10	$	2.26	$	5.05
Cash dividends on common stock	$	0.980	$	1.920	$	2.380

~~Management believes the~~The information presented in ~~sections A to G and J of the table on~~ the following ~~page highlight~~table highlights the most meaningful ~~realistic~~ indicators of ORI's segmented and consolidated financial performance. The information underscores the ~~necessity~~performance of ~~reviewing reported results by separating~~ the ~~inherent volatility~~Company's underwriting subsidiaries, as well as the sound investment of ~~securities markets~~their capital and ~~their above-noted impact on reported net income (loss).~~underwriting cash flows.

2926

Major Segmented and Consolidated
Elements of Income (Loss)
2020 2019
Years Ended December 31: 2020 2019 2018 vs. 2019 vs. 2018
A. Net premiums, fees, and other income (d):
General insurance $ 3,394.2 $ 3,432.4 $ 3,277.1 (1.1) % 4.7 %
Title insurance 3,286.3 2,736.0 2,573.1 20.1 6.3
Corporate and other 12.0 13.4 14.6 (10.0) (8.8)
Other income 131.2 132.6 121.6 (1.0) 9.0
Subtotal 6,823.9 6,314.4 5,986.6 8.1 5.5
RFIG run-off business (c) 45.1 59.2 75.9 (23.8) (22.0)
Consolidated $ 6,869.1 $ 6,373.7 $ 6,062.5 7.8 % 5.1 %
B. Underwriting and related services income (loss):
General insurance $ 151.8 $ 84.9 $ 91.2 78.8 % (6.9) %
Title insurance 305.8 193.4 185.1 58.0 4.6
Corporate and other (17.0) (15.5) (21.9) (9.5) 29.1
Subtotal 440.5 262.8 254.3 67.6 3.4
RFIG run-off business (c) (5.3) 12.7 29.7 (142.3) (57.3)
Consolidated $ 435.2 $ 275.6 $ 284.0 57.9 % (3.0) %
C. Consolidated underwriting ratio (d):
Claim ratio 37.0 % 41.2 % 41.4 %
Expense ratio 56.3 54.1 53.5
Combined ratio 93.3 % 95.3 % 94.9 %
D. Net investment income:
General insurance $ 352.2 $ 356.4 $ 341.0 (1.2) % 4.5 %
Title insurance 42.0 41.4 38.8 1.3 6.6
Corporate and other 29.4 35.1 31.7 (16.2) 10.7
Subtotal 423.6 433.0 411.7 (2.2) 5.2
RFIG run-off business 15.2 17.6 20.1 (13.4) (12.6)
Consolidated $ 438.9 $ 450.7 $ 431.8 (2.6) % 4.4 %
E. Interest and other charges (credits):
General insurance $ 64.2 $ 71.1 $ 68.3
Title insurance 3.8 4.1 4.6
Corporate and other (a) (24.3) (35.2) (30.6)
Subtotal 43.7 40.0 42.2
RFIG run-off business — — —
Consolidated $ 43.7 $ 40.0 $ 42.2 9.1 % (5.2) %
F. Segmented and consolidated pretax
income (loss) excluding investment
gains (losses)(B+D-E):
General insurance $ 439.8 $ 370.2 $ 363.9 18.8 % 1.7 %
Title insurance 344.0 230.8 219.3 49.0 5.2
Corporate and other 36.7 54.8 40.4 (33.1) 35.5
Subtotal 820.5 655.9 623.8 25.1 5.2
RFIG run-off business (c) 9.8 30.3 49.9 (67.4) (39.3)
Consolidated 830.4 686.2 673.7 21.0 % 1.9 %
Income taxes (credits) on above (b)
159.6 132.0 117.2
G. Net income (loss) excluding
investment gains (losses) 670.8 554.2 556.4 21.0 % (0.4) %
H. Consolidated pretax investment gains (losses):
Realized from actual transactions and impairments 14.2 36.6 58.2
Unrealized from changes in fair value of equity securities (156.2) 599.5 (293.8)
Total (142.0) 636.1 (235.6)
Income taxes (credits) on above (29.8) 133.8 (49.6)
Net of tax investment gains (losses) (112.1) 502.2 (185.9)
I. Net income (loss) $ 558.6 $ 1,056.4 $ 370.5
J. Consolidated operating cash flow $ 1,185.0 $ 936.2 $ 760.5


	Sources of Consolidated Income
										2023		2022
Years Ended December 31:	2023			2022			2021			vs. 2022		vs. 2021
Net premiums and fees earned:
General Insurance	$	4,119.2		$	3,808.6		$	3,555.5		8.2	%	7.1	%
Title Insurance	2,562.8			3,833.8			4,404.3			(33.2)		(13.0)
RFIG Run-off	16.4			23.2			32.6			(29.2)		(28.9)
Corporate & Other	9.1			9.6			11.0			(4.9)		(12.3)
Consolidated	$	6,707.7		$	7,675.3		$	8,003.6		(12.6)	%	(4.1)	%

Underwriting and related services income (loss):
General Insurance	$	406.0		$	400.9		$	311.4		1.3	%	28.7	%
Title Insurance	75.4			261.3			474.0			(71.1)		(44.9)
RFIG Run-off	14.9			28.4			21.3			(47.7)		33.3
Corporate & Other	(65.8)			(24.9)			(20.9)			(163.2)		(19.3)
Consolidated	$	430.6		$	665.8		$	785.9		(35.3)	%	(15.3)	%

Consolidated underwriting ratio:
Loss ratio:
Current year	43.3		%	35.5		%	32.9		%
Prior years	(4.6)			(3.7)			(2.7)
Total	38.7			31.8			30.2
Expense ratio	53.9			59.2			59.7
Combined ratio	92.6		%	91.0		%	89.9		%

Net investment income:
General Insurance	$	462.7		$	358.0		$	342.4		29.3	%	4.5	%
Title Insurance	57.0			47.9			43.8			18.9		9.4
RFIG Run-off	6.3			6.7			11.4			(6.8)		(41.1)
Corporate & Other	52.2			46.8			36.5			11.5		28.1
Consolidated	$	578.3		$	459.5		$	434.3		25.8	%	5.8	%

Interest and other charges (credits):
General Insurance	$	80.9		$	69.1		$	64.2
Title Insurance	(1.0)			0.4			2.1

Corporate & Other (a)	(9.3)			(2.8)			(10.1)
Consolidated	$	70.5		$	66.7		$	56.2		5.7	%	18.7	%

Segmented and consolidated pretax income
(loss) excluding investment gains (losses):
General Insurance	$	787.8		$	689.8		$	589.6		14.2	%	17.0	%
Title Insurance	133.5			308.8			515.7			(56.7)		(40.1)
RFIG Run-off	21.2			35.2			32.8			(39.9)		7.3
Corporate & Other	(4.2)			24.6			25.7			(117.3)		(4.3)
Consolidated	938.4			1,058.6			1,164.0			(11.4)	%	(9.1)	%
Income taxes on above	188.8			213.4			228.1
Net income excluding investment
gains (losses)	749.5			845.1			935.9			(11.3)	%	(9.7)	%
Consolidated pretax investment gains (losses):
Realized from actual transactions and impairments	(21.4)			62.2			6.9
Realized from pending sale of mortgage insurance business	(45.6)			—			—
Unrealized from changes in fair value of equity securities	(123.9)			(263.4)			751.1
Total	(190.9)			(201.1)			758.0
Income taxes (credits) on above	(40.0)			(42.5)			159.6
Net of tax investment gains (losses)	(150.8)			(158.6)			598.4
Net income	$	598.6		$	686.4		$	1,534.3

(a) Includes consolidation/elimination entries. (b) The effective tax rates applicable to pretax income excluding investment gains and (losses) were 19.2%, 19.2% and 17.4% for the years ended December 31, 2020, 2019 and 2018, respectively. (c) See Note (a) in RFIG Run-off Results. (d) Certain reclassification adjustments were made to increase 2019 and 2018 periods' net premiums and fees earned with a corresponding increase to sales and general expenses to conform all prior periods to the presentation adopted in 2020. See Note 1(c) to the accompanying Notes to Consolidated Financial Statements.

3027


General Insurance Segment Operating Results

General Insurance Summary Operating Results
% Change
2020 2019
Years Ended December 31: 2020 2019 2018 vs. 2019 vs. 2018
Net premiums written $ 3,431.3 $ 3,469.0 $ 3,380.4 (1.1) % 2.6 %
Net premiums earned 3,394.2 3,432.4 3,277.1 (1.1) 4.7
Net investment income 352.2 356.4 341.0 (1.2) 4.5
Other income 130.3 131.9 121.3 (1.2) 8.8
Operating revenues 3,876.8 3,920.8 3,739.4 (1.1) 4.8
Claim costs 2,372.0 2,464.6 2,365.8 (3.8) 4.2
Sales and general expenses 1,000.7 1,014.7 941.3 (1.4) 7.8
Interest and other costs 64.2 71.1 68.3 (9.7) 4.1
Operating expenses 3,436.9 3,550.5 3,375.5 (3.2) 5.2
Segmented pretax operating income (loss) $ 439.8 $ 370.2 $ 363.9 18.8 % 1.7 %
Claim ratio 69.9 % 71.8 % 72.2 %
Expense ratio 25.6 25.7 25.0
Combined ratio 95.5 % 97.5 % 97.2 %

~~__________________~~

~~Effective July 1, 2019, the results of the CCI run-off business are being classified in the General Insurance Segment for and all future periods.~~


											% Change
											2023		2022
Years Ended December 31:		2023			2022			2021			vs. 2022		vs. 2021
Net premiums written		$	4,356.3		$	3,978.2		$	3,680.9		9.5	%	8.1	%
Net premiums earned		4,119.2			3,808.6			3,555.5			8.2		7.1
Net investment income		462.7			358.0			342.4			29.3		4.5
Other income		162.2			148.9			144.5			8.9		3.1
Operating revenues		4,744.3			4,315.6			4,042.5			9.9		6.8
Loss and loss adjustment expenses		2,553.3			2,364.6			2,303.1			8.0		2.7
Sales and general expenses		1,322.2			1,192.0			1,085.4			10.9		9.8
Interest and other costs		80.9			69.1			64.2			17.0		7.7
Operating expenses		3,956.4			3,625.8			3,452.8			9.1		5.0
Segment pretax operating income		$	787.8		$	689.8		$	589.6		14.2	%	17.0	%

Loss ratio:
	Current year	67.7		%	67.2		%	68.6		%
	Prior years	(5.7)			(5.1)			(3.8)
	Total	62.0			62.1			64.8
Expense ratio		28.2			27.4			26.5
	Combined ratio	90.2		%	89.5		%	91.3		%

General Insurance net premiums earned ~~were down slightly for 2020. The economic impacts~~increased 8.2% in 2023, driven by a combination of ~~the COVID-19 pandemic and tightened underwriting standards were mitigated by strong~~ premium rate increases, ~~for~~high renewal retention ratios, and new business production, including contributions from recently established underwriting subsidiaries. Premium growth occurred across most ~~insurance products. Declining workers' compensation~~lines of coverage and was most pronounced within commercial auto, property and general liability, ~~premiums were largely~~partially offset by ~~rising premiums~~declines in ~~commercial~~public D&O (included within financial indemnity) and home warranty. Commercial auto, ~~financial indemnity~~general liability and property ~~coverages. With few exceptions, 2019 premiums grew for most types of coverages~~achieved strong rate increases while there were rate declines in public D&O and ~~markets served. The largest contributions principally stemmed from commercial automobile (trucking), national accounts, and executive indemnity coverages.~~workers' compensation. Net investment income ~~decreased~~increased significantly for the year, driven largely by ~~1.2% for 2020~~higher investment yields earned, and ~~increased by 4.5% in 2019.~~to a lesser extent, a higher invested asset base.

The ~~consolidated~~reported loss ratio for General Insurance ~~claim ratio generally trended down~~remained consistent in ~~all periods presented~~2023 as compared to the prior year. Favorable development came predominantly from workers' compensation and ~~for 2020 was primarily driven~~commercial auto, partially offset by ~~better performance~~unfavorable development within general liability. Overall, the longer term trends in ~~most coverages, primarily due to prior periods' favorable reserve developments. Expense~~current year loss and expense ratios ~~remained relatively consistent with~~reflect a shift in the ~~comparable 2019~~line of coverage mix. Investments in new products and ~~2018 periods and are generally reflective~~geographies in recent years have diversified the General Insurance business, resulting in a shift in the line of ~~ongoing~~ coverage mix ~~dynamics~~toward lines with lower current period loss ratios and ~~the variability of sales and general expenses among such coverages.~~ higher expense ratios.

Together, these factors produced ~~significantly greater~~highly profitable combined ratios and strong pretax operating income for ~~2020.~~the periods reported. For General Insurance, we target combined ratios between 90% and 95% over a full underwriting cycle, recognizing that quarterly and annual ratios and trends may deviate from this range, particularly given the long claim payment patterns associated with the business.

~~The following table shows recent annual claim ratios and the effects of claim development trends:~~

Effect of Prior Periods'
(Favorable)/ Claim Ratio Excluding
Reported Unfavorable Claim Prior Periods' Claim
Claim Ratio Reserves Development Reserves Development
2016 73.0 % 0.3 % 72.7 %
2017 71.8 0.7 71.1
2018 72.2 — 72.2
2019 71.8 0.4 71.4
2020 69.9 % (0.8) % 70.7 %

Annual claim ratios and trends may not be particularly meaningful indicators of future outcomes for an insurance company with a liability-oriented coverage mix and its relatively long claim payment patterns. Management's long-term targets, assuming the current coverage mix, are for annually reported claim ratio averages in the high 60% to low 70% range, expense ratio averages of 25% or below, and a combined ratio ranging between 90% and 95%.


Title Insurance Segment Operating Results

Title Insurance Summary Operating Results (a)
% Change
2020 2019
Years Ended December 31: 2020 2019 2018 vs. 2019 vs. 2018
Net premiums and fees earned (a) $ 3,286.3 $ 2,736.0 $ 2,573.1 20.1 % 6.3 %
Net investment income 42.0 41.4 38.8 1.3 6.6
Other income 0.9 0.7 0.3 39.1 80.2
Operating revenues 3,329.3 2,778.1 2,612.4 19.8 6.3
Claim costs 75.3 67.4 48.3 11.8 39.4
Sales and general expenses (a) 2,906.1 2,475.7 2,340.1 17.4 5.8
Interest and other costs 3.8 4.1 4.6 (7.7) (10.7)
Operating expenses 2,985.3 2,547.3 2,393.1 17.2 6.4
Segmented pretax operating income (loss) $ 344.0 $ 230.8 $ 219.3 49.0 % 5.2 %
Claim ratio 2.3 % 2.5 % 1.9 %
Expense ratio 88.4 90.5 90.9
Combined ratio 90.7 % 93.0 % 92.8 %

~~__________________~~


											% Change
											2023		2022
Years Ended December 31:		2023			2022			2021			vs. 2022		vs. 2021
Net premiums and fees earned		$	2,562.8		$	3,833.8		$	4,404.3		(33.2)	%	(13.0)	%
Net investment income		57.0			47.9			43.8			18.9		9.4
Other income		0.7			0.9			1.1			(15.4)		(18.2)
Operating revenues		2,620.6			3,882.7			4,449.3			(32.5)		(12.7)
Loss and loss adjustment expenses		48.7			89.1			112.9			(45.3)		(21.1)
Sales and general expenses		2,439.3			3,484.2			3,818.4			(30.0)		(8.8)
Interest and other costs		(1.0)			0.4			2.1			N/M		(80.2)
Operating expenses		2,487.0			3,573.8			3,933.5			(30.4)		(9.1)
Segment pretax operating income		$	133.5		$	308.8		$	515.7		(56.7)	%	(40.1)	%

Loss ratio:
	Current year	3.7		%	3.6		%	3.6		%
	Prior years	(1.8)			(1.3)			(1.0)
	Total	1.9			2.3			2.6
Expense ratio		95.2			90.9			86.7
	Combined ratio	97.1		%	93.2		%	89.3		%

(a) Certain reclassification adjustments were made to increase net premiums and fees earned with a corresponding increase to sales and general expenses of $246.8 and $237.0 in the years ended December 31, 2019 and 2018, respectively. These adjustments were made to conform all prior periods to the presentation adopted in 2020 to reflect such revenues gross of applicable commission expense and had no impact on segmented pretax operating income (loss) in any period presented. ~~See Note 1(c) to the accompanying Notes to Consolidated Financial Statements.~~

Title Insurance ~~operating~~net premiums and fees earned decreased by 33.2% in 2023. Both directly produced and agency produced revenues ~~were up 19.8% and 6.3% for 2020 and 2019, respectively. This performance was~~declined, driven by a ~~robust real estate market supported by a~~ continued ~~low~~drop in mortgage originations attributable to higher mortgage interest ~~rate environment, resulting~~rates. Commercial premiums decreased commensurately, and represent 22% of premiums earned in ~~an increase in home sales and refinance activity.~~2023. Net investment income increased, ~~slightly for 2020 and 6.6% for 2019.~~reflecting higher investment yields earned partially offset by a lower invested asset base.

The Title Insurance ~~claim~~loss ratio ~~trends reflect the varying effects~~decreased reflecting higher levels of favorable development as a percentage of ~~prior years' claim reserve estimates. Underwriting~~premium.

Expense ratios reflect the impact of a $17.2 state sales tax assessment paid and expensed in the fourth quarter of 2022 and subsequently recovered and taken into income in 2023. The assessment increased the 2022 expense ~~ratios improved in 2020 resulting from greater leverage~~ratio by 0.5 percentage points, and its recovery reduced the 2023 expense ratio by 0.7 percentage points. Excluding the impacts of ~~this segment's~~the sales tax assessment, the expense ~~structure on significantly~~ratio remain elevated, generally reflecting lower directly produced revenues that carry higher ~~premium and fee volume. Title Insurance~~fixed expenses.

Together, these factors produced ~~significantly greater~~lower pretax operating income for ~~2020.~~

~~The following table shows recent annual and interim periods’ claim ratios and~~ the ~~effects of claim development trends:~~

Effect of Prior Periods'
(Favorable)/ Claim Ratio Excluding
Reported Unfavorable Claim Prior Periods' Claim
Claim Ratio Reserves Development Reserves Development
2016 3.5 % (1.0) % 4.5 %
2017 0.8 (3.0) 3.8
2018 1.9 (1.8) 3.7
2019 2.5 (1.2) 3.7
2020 2.3 % (1.3) % 3.6 %
periods reported.

3229


RFIG Run-off Segment Operating Results - Mortgage Insurance

RFIG Run-off Summary Operating Results (a)
% Change
2020 2019
Years Ended December 31: 2020 2019 2018 vs. 2019 vs. 2018
A. Mortgage Insurance (MI)
Net premiums earned $ 45.1 $ 58.8 $ 74.4 (23.3) % (20.9) %
Net investment income 15.2 17.3 19.2 (12.0) (9.9)
Claim costs 36.9 32.3 32.1 14.1 0.7
MI pretax operating income (loss) $ 9.8 $ 29.2 $ 46.7 (66.2) % (37.3) %
Claim ratio 81.7 % 55.0 % 43.2 %
Expense ratio 30.2 24.8 20.0
Combined ratio 111.9 % 79.8 % 63.2 %
B. Consumer Credit Insurance (CCI) (a)
CCI pretax operating income (loss) $ — $ 1.0 $ 3.2
C. Total MI and CCI run-off business (a)
Segment pretax operating income (loss) $ 9.8 $ 30.3 $ 49.9 (67.4) % (39.3) %

~~__________________~~

(a) Results for the CCI run-off are expected to be immaterial in the remaining run-off periods. Effective July 1, 2019, these results have been re-classified to General Insurance for all future periods.


											% Change
											2023		2022
Years Ended December 31:		2023			2022			2021			vs. 2022		vs. 2021
Net premiums earned		$	16.4		$	23.2		$	32.6		(29.2)	%	(28.9)	%
Net investment income		6.3			6.7			11.4			(6.8)		(41.1)
Loss and loss adjustment expenses		(11.0)			(17.5)			(1.7)			37.2		N/M
Pretax operating income		$	21.2		$	35.2		$	32.8		(39.9)	%	7.3	%

Loss ratio:
	Current year	91.4		%	80.8		%	62.2		%
	Prior years	(158.3)			(156.3)			(67.5)
	Total	(66.9)			(75.5)			(5.3)
Expense ratio		76.5			53.0			39.9
	Combined ratio	9.6		%	(22.5)		%	34.6		%

Given the volatility inherent with a lack of scale, RFIG Run-off is susceptible to produce highly variable results which have recently benefited significantly from favorable loss reserve development. Pretax operating ~~results of RFIG Run-off reflect~~income reflects the ~~expected,~~ continuing drop in net earned premiums offset by favorable loss reserve development from ~~declining risk in force. Claim costs for 2020 reflect greater reserve provisions necessitated by elevated delinquencies and~~higher levels of cure rates on reported defaults. Extraordinary dividends of $110.0 were paid to the ~~evolving economic impacts of the COVID-19 pandemic. Investment income declined primarily as a result of a lower invested asset base and lower investment yields.~~parent company during 2023.

~~As shown~~During the fourth quarter, a definitive agreement was reached to sell the mortgage insurance business to Arch U.S. MI Holdings Inc., a subsidiary of Arch Capital Group Ltd. The transaction is subject to regulatory approval and is expected to close in the ~~accompanying tables,~~first half of 2024. An estimated loss on the ~~2020 claim ratio reflects~~pending sale, inclusive of transaction costs, totaling $45.6 was reflected as a realized investment loss during the ~~aforementioned increase~~fourth quarter. See Note 2 in ~~reported delinquencies, a declining proportion of which remain under forbearance as compared~~the Notes to ~~earlier 2020 periods. Prior period favorable development is primarily the result of improving trends in claim severity.~~Consolidated Financial Statements for further discussion.

Prior to the onset of the COVID-19 pandemic, as indicated in the far right column of the following table, the RFIG Run-off claim ratios had experienced a fairly consistent decline in recent annual periods largely due to a combination of declining new loan defaults and stable-to-improving cure rates for outstanding delinquent loans.

Effect of Prior Periods'
(Favorable)/ Claim Ratio Excluding
Reported Unfavorable Claim Prior Periods' Claim
Claim Ratio Reserves Development Reserves Development
2016 34.1 % (39.8) % 73.9 %
2017 57.6 (38.3) 95.9
2018 43.2 (27.0) 70.2
2019 55.0 (12.5) 67.5
2020 81.7 % (26.5) % 108.2 %

3330


Corporate ~~and~~& Other Operating Results


		Corporate and Other Summary Operating Results
									% Change
									2020		2019
								% Change																																				% Change
								2023																																			2023		2022
Years Ended December 31:	Years Ended December 31:	2020		2019		2018			vs. 2019		vs. 2018		Years Ended December 31:			2023					2022						2021						vs. 2022						vs. 2021
Net life and accident premiums earned	Net life and accident premiums earned	$	12.0	$	13.4	$	14.6		(10.0)	%	(8.8)	%	Net life and accident premiums earned			$	9.1	$			$	9.6	$				$	11.0		(4.9)				(4.9)	%					(12.3)	%
Net investment income	Net investment income	29.4		35.1		31.7			(16.2)		10.7
Other operating income		—		—		(0.1)			—		31.4

Operating revenues	Operating revenues	41.4		48.5		46.3			(14.6)		4.6
Claim costs		7.1		8.8		16.7			(19.7)		(46.7)
Operating revenues
Operating revenues
Benefits and loss and loss adjustment expenses
Insurance expenses	Insurance expenses	4.2		4.5		4.8			(6.6)		(6.2)
Corporate, interest and other expenses - net	Corporate, interest and other expenses - net	(6.6)		(19.7)		(15.6)			66.3		(26.4)		Corporate, interest and other expenses - net			56.6		24.4				24.4		11.6					11.6		131.7					131.7						109.7
Operating expenses	Operating expenses	4.7		(6.3)		5.9			174.7		(207.2)		Operating expenses			65.7		31.8				31.8		21.7					21.7		106.3					106.3						46.6
Corporate and other pretax operating income (loss)		$	36.7	$	54.8	$	40.4		(33.1)	%	35.5	%
Corporate & Other pretax operating income (loss)													Corporate & Other pretax operating income (loss)	$	(4.2)				$	24.6					$	25.7					(117.3)	%					(4.3)	%

This segment includes ~~the combination of~~ a small life and accident insurance business and the net costs associated with the parent holding company and ~~its~~several internal corporate services subsidiaries. The segment tends to produce highly variable results stemming from volatility inherent from the lack of scale. Investment income in both 2023 and 2022 reflects the impact of higher investment yields earned. Whereas the average invested asset base was lower in 2023 due to the ~~small scale~~return of capital to shareholders, the ~~life~~2022 invested asset base was higher, reflecting the proceeds from the $650 debt issuance in late 2021. Corporate net operating expenses in 2023 reflect higher personnel related costs and ~~accident insurance line, net investment income,~~a one-time charge of $10.7 relating to changes in the structure of a company benefit plan. Interest expense in both 2023 and ~~net interest charges (credits) pertaining~~2022 increased over 2021 due to ~~external and intra-system financing arrangements.~~the aforementioned debt issuance.


Summary Consolidated Balance Sheet

December 31,
2020 2019
Assets:
Cash and fixed maturity securities $ 11,365.1 $ 10,381.5
Equity securities 4,054.8 4,030.5
Other invested assets 115.3 115.4
Cash and invested assets 15,535.3 14,527.4
Accounts and premiums receivable 1,593.9 1,466.7
Federal income tax recoverable: Current — 5.7
Reinsurance balances recoverable 4,362.8 3,823.9
Deferred policy acquisition costs 328.0 325.4
Sundry assets 995.0 927.0
Total assets $ 22,815.2 $ 21,076.3
Liabilities and Shareholders' Equity:
Policy liabilities $ 2,593.1 $ 2,419.2
Claim reserves 10,671.0 9,929.5
Federal income tax payable: Current 4.2 —
Deferred 137.3 112.2
Reinsurance balances and funds 725.4 616.0
Debt 966.4 974.0
Sundry liabilities 1,530.8 1,025.1
Total liabilities 16,628.5 15,076.1
Shareholders' equity 6,186.6 6,000.1
Total liabilities and shareholders' equity $ 22,815.2 $ 21,076.3


	December 31,
	2023		2022
Assets:
Cash and fixed income securities	$	13,375.4	$	12,688.7
Equity securities	2,660.8		3,220.9
Other	151.3		138.0
Total investments, cash and accrued investment income	16,187.6		16,047.7
Accounts and notes receivable	2,201.4		1,927.5
Federal income tax assets	21.8		15.7

Reinsurance recoverable	5,951.4		5,588.0
Deferred policy acquisition costs	417.8		382.5

Other assets	1,721.2		1,197.9
Total assets	$	26,501.4	$	25,159.4

Liabilities and Shareholders' Equity:
Policy liabilities	$	3,193.1	$	2,970.0
Loss and loss adjustment expense reserves	12,538.2		12,221.5

Federal income tax liabilities	105.6		42.7
Reinsurance balances and funds held	1,380.9		1,079.4
Debt	1,591.2		1,597.0

Other liabilities	1,281.4		1,075.3
Total liabilities	20,090.7		18,986.2
Shareholders' equity	6,410.7		6,173.2
Total liabilities and shareholders' equity	$	26,501.4	$	25,159.4

3431


Cash, Invested Assets, and Shareholders' Equity


						Cash, Invested Assets, and Shareholders' Equity
													% Change
						December 31,							Dec. '20 /		Dec. '19 /
												% Change																												% Change
					December 31,																											December 31,						Dec. 2023 /	Dec. 2022 /
As of December 31:	As of December 31:					2020		2019		2018			Dec. '19		Dec. '18		As of December 31:	2023			2022				2021				Dec. 2022				Dec. 2021
Cash and invested assets:	Cash and invested assets:
		Fixed maturity securities, cash and other
		invested assets				$	11,480.4	$	10,496.9	$	9,806.4		9.4	%	7.0	%
		Equity securities				4,054.8		4,030.5		3,380.9			0.6		19.2
		Total per balance sheet				$	15,535.3	$	14,527.4	$	13,187.4		6.9	%	10.2	%
		Total at cost for all				$	14,151.6	$	13,327.2	$	12,950.6		6.2	%	2.9	%
		Cash, fixed income securities, and other
		Cash, fixed income securities, and other
		Cash, fixed income securities, and other																$	13,526.7		$	12,826.7			$	11,516.1			5.5	%			11.4	%
	Equity securities
	Total per balance sheet																			Total per balance sheet			$	16,187.6			$	16,047.7		$	16,818.9			0.9	%	(4.6)	%
	Total at cost																			Total at cost			$	15,164.4			$	15,365.7		$	15,045.8			(1.3)	%	2.1	%

Composition of shareholders' equity per share:	Composition of shareholders' equity per share:
		Equity before items below				$	17.73	$	17.25	$	17.04		2.8	%	1.2	%
		Unrealized investment gains (losses) and other
			accumulated comprehensive income (loss)			3.02		2.73		0.19
				Total		$	20.75	$	19.98	$	17.23		3.9	%	16.0	%
Composition of shareholders' equity per share:
Composition of shareholders' equity per share:
		Equity before items below
		Equity before items below
		Equity before items below																$	20.51		$	19.43			$	18.51			5.6	%			5.0	%
	Unrealized investment gains (losses) and other
			accumulated comprehensive income (loss)
			accumulated comprehensive income (loss)
			accumulated comprehensive income (loss)
				Total
				Total
				Total														$	23.31		$	21.07			$	22.77			10.6	%			(7.5)	%

Segmented composition of	Segmented composition of
Segmented composition of
Segmented composition of
shareholders' equity per share:	shareholders' equity per share:
		Excluding run-off segment				$	19.25	$	18.37	$	15.73		4.8	%	16.8	%
		RFIG run-off segment				1.50		1.61		1.50
				Consolidated total		$	20.75	$	19.98	$	17.23		3.9	%	16.0	%
shareholders' equity per share:
shareholders' equity per share:
		Excluding RFIG Run-off segment
		Excluding RFIG Run-off segment
		Excluding RFIG Run-off segment																$	22.72		$	20.17			$	21.48			12.6	%			(6.1)	%
	RFIG Run-off segment
				Consolidated total
				Consolidated total
				Consolidated total														$	23.31		$	21.07			$	22.77			10.6	%			(7.5)	%

As of December 31, 2023, the consolidated investment portfolio reflected an allocation of approximately 83% to fixed income (bonds and notes) and short-term investments, and 17% to equity securities (common stock). Our investment management process remains focused on retaining quality investments that produce consistent streams of investment income, and we continue to evaluate the investment portfolio mix in light of the current interest rate environment. During 2022, management rebalanced the investment portfolio, thereby reducing its equity holdings and reinvesting the proceeds in fixed income securities. The fixed income portfolio continues to be the anchor for the insurance underwriting subsidiaries' obligations. The maturities of our fixed income assets are matched to the expected liabilities for claim payment obligations to policyholders and their beneficiaries. Our equity portfolio consists of high-quality common stocks of U.S. companies with long-term records of reasonable earnings growth and steadily increasing dividends.

Old Republic's ~~invested assets~~investment portfolio is directed in consideration of enterprise-wide risk management ~~objectives. Most importantly, these are~~objectives, intended to ensure solid funding of ~~the~~our insurance underwriting subsidiaries' ~~long-term~~ obligations to policyholders and ~~other~~their beneficiaries, as well as the long-term stability of ~~the~~these subsidiaries’ capital ~~accounts. To this end,~~base. For these reasons, the investment portfolio ~~contains no significant insurance risk-correlated~~does not contain high risk or illiquid asset ~~exposures~~classes and has extremely limited exposure to ~~real estate, mortgage-backed securities,~~ collateralized debt obligations ~~("CDO's")~~(CDO), ~~derivatives,~~credit default and interest rate swaps, hybrid securities, asset-backed securities (ABS), guaranteed investment contracts (GIC), structured investment vehicles (SIV), auction rate variable short-term securities, limited partnerships, derivatives, hedge funds or ~~illiquid~~ private equity ~~and hedge fund~~ investments. Moreover, the Company does not engage in hedging or securities lending transactions, nor does it invest in securities whose values are predicated on non-regulated financial instruments exhibiting amorphous or unfunded counter-party risk attributes.

~~As of December 31, 2020, the consolidated investment portfolio reflected an allocation of approximately 74%~~ Pursuant to fixed-maturity (bonds and notes) and short-term investments, and 26% to equity securities (common stock). The fixed-maturity portfolio continues to be the basic anchor for the insurance underwriting subsidiaries' obligations. The maturities are stratified and conservatively matched to the expected timing of future years' payments of those obligations. The quality of the investment portfolio has remained at high levels.

For the past several years, a significant portion of ORI's investable funds have been directed toward purchasing high-quality common stocks of U.S. companies (currently limited to fewer than 100 issues). We favor those with long-term records of reasonable earnings growth and steadily increasing dividends. Periodic stress tests of this portfolio are made pursuant toour enterprise risk management guidelines and ~~controls. Their purpose is~~controls, we perform regular stress tests of our investment portfolio to gain reasonable assurance that periodic downdrafts in market prices ~~would~~do not seriously undermine ~~ORI's~~our financial strength and the long-term continuity and prospects of ~~the business.~~our insurance underwriting subsidiaries.

3532

Changes in shareholders' equity per share are reflected in the following table. As shown, these resulted mostly from net income excluding net investment gains (losses), realized and unrealized investment gains (losses), and dividend payments to shareholders.

Shareholders' Equity Per Share
December 31,
2020 2019 2018
Beginning balance $ 19.98 $ 17.23 $ 17.72
Changes in shareholders' equity:
Net income (loss) excluding net investment gains (losses) 2.24 1.85 1.89
Net of tax realized investment gains (losses) 0.04 0.10 0.16
Net of tax unrealized investment gains (losses) on
securities carried at fair value 0.50 2.53 (1.38)
Total net of tax realized and unrealized
investment gains (losses) 0.54 2.63 (1.22)
Cash dividends (a) (1.84) (1.80) (0.78)
Other (0.17) 0.07 (0.38)
Net change 0.77 2.75 (0.49)
Ending balance $ 20.75 $ 19.98 $ 17.23
Percentage change for the period 3.9 % 16.0 % -2.8 %

~~__________________~~

~~(a) Includes special cash dividends of $1.00 per share declared in December 2020 and September 2019.~~


	Shareholders' Equity Per Share
	December 31,
	2023			2022			2021
Beginning balance	$	21.07		$	22.77		$	20.76
Changes in shareholders' equity:
Net income excluding net investment gains (losses)	2.65			2.80			3.10
Net of tax realized investment gains (losses)	(0.19)			0.17			0.02
Net of tax unrealized investment gains (losses):
Fixed income securities	1.31			(2.18)			(0.97)
Equity securities	(0.34)			(0.69)			1.96
Total net of tax realized and unrealized
investment gains (losses)	0.78			(2.70)			1.01
Cash dividends	(0.98)			(1.92)			(2.38)
Other - net	(0.21)			0.12			0.28
Net change	2.24			(1.70)			2.01
Ending balance	$	23.31		$	21.07		$	22.77
Percentage change for the period	10.6		%	(7.5)		%	9.7		%
Percentage change for the period, inclusive of cash dividends	15.3		%	1.0		%	21.1		%


~~Capitalization~~

Capitalization
December 31,
2020 2019 2018
Debt:
4.875% Senior Notes due 2024 $ 397.9 $ 397.3 $ 396.8
3.875% Senior Notes due 2026 546.8 546.2 545.7
Other miscellaneous debt 21.7 30.4 38.8
Total debt 966.4 974.0 981.4
Common shareholders' equity 6,186.6 6,000.1 5,146.2
Total capitalization $ 7,153.1 $ 6,974.2 $ 6,127.6
Capitalization ratios:
Debt 13.5 % 14.0 % 16.0 %
Common shareholders' equity 86.5 86.0 84.0
Total 100.0 % 100.0 % 100.0 %

3633


DETAILED MANAGEMENT ANALYSIS

This section of the Management Analysis of Financial Position and Results of Operations is additive to and should be read in conjunction with the Executive Summary which precedes it.


~~CRITICAL ACCOUNTING ESTIMATES~~

The Company's annual financial statements incorporate a large number and types of estimates relative to matters which are highly uncertain at the time the estimates are made. The estimation process required of an insurance enterprise such as Old Republic is by its very nature highly dynamic inasmuch as it necessitates a continuous evaluation, analysis, and quantification of factual data as it becomes known to the Company. As a result, actual experienced outcomes can differ from the estimates made at any point in time and thus affect future periods' reported revenues, expenses, net income or loss, and financial condition.

Old Republic believes that its most critical accounting estimates relate to: a) the determination of other-than-temporary impairments ("OTTI") in the value of fixed maturity investments; b) the recoverability of reinsured outstanding losses; and c) the establishment of reserves for losses and loss adjustment expenses. The major assumptions and methods used in setting these estimates are discussed in the pertinent sections of this Management Analysis and are summarized as follows:

~~(a) Other-than-temporary impairments in the value of fixed maturity investments:~~

The Company completes a detailed analysis each quarter to assess whether the decline in the value of any fixed maturity investment below its cost basis is deemed other-than-temporary. This assessment is subject to a great deal of judgment and all securities in an unrealized loss position are reviewed. The decline in value of a security deemed OTTI is included as a realized investment loss in the determination of net income and effective January 1, 2020 is established as an allowance for credit loss for financial reporting purposes.

The Company recognized no OTTI adjustments or allowances for credit losses for the year ended December 31, 2020. OTTI adjustments of $2.0 and $— were recorded during the years ended December 31, 2019 and 2018, respectively.

~~(b) The recoverability of reinsured outstanding losses~~

Assets consisting of balance sheet date reserve estimates recoverable from assuming reinsurers in future periods as gross losses are settled and paid, are established at the same time as the gross losses are recorded as reserves. Accordingly, these assets are subject to the same estimation processes and valuations as the related gross amounts as is discussed below. As of the three most recent year ends, outstanding reinsurance recoverable balances ranged between 31.7% and 34.2% and averaged 32.9% of the related gross reserves. See Part I, Item 1(d) for further discussion regarding recoverability of the Company's reinsurance balances.

~~(c) The reserves for losses and loss adjustment expenses~~

As discussed in pertinent sections of this management analysis, the reserves for losses and related loss adjustment expenses are based on a wide variety of factors and calculations. Among these the Company believes the most critical are:

•The establishment of expected claim ratios for at least the two to five most recent accident years, particularly for so-called long-tail coverages as to which information about covered losses emerges and becomes more accurately quantifiable over long periods of time. Long-tail coverages generally include workers' compensation, commercial automobile (trucking) liability, general liability, errors and omissions and directors and officers' liability, as well as title insurance. Gross loss reserves related to such long-tail coverages ranged between 94.6% and 95.2%, and averaged 95.0% of gross consolidated claim reserves as of the three most recent year ends. Net of reinsurance recoverables, such reserves ranged between 94.4% and 95.0% and averaged 94.7% as of the same dates.

•Loss trends that are considered when establishing the above noted expected claim ratios which take into account such variables as: judgments and estimates relative to premium rate trends and adequacy, current and expected interest rates, current and expected social and economic inflation trends, and insurance industry statistical claim trends. The Company applies these expected claim ratios to earned premiums when estimating the periodic reserve for losses and loss adjustment expenses.

•Loss development factors, expected claim rates and average claim costs, all of which are based on Company and/or industry statistics may also be used to project reported and unreported losses for each accounting period.

Consolidated claim costs developed favorably in the three most recent calendar years. This development had the consequent effect of reducing consolidated annual loss costs for the three most recent years within a range of 1.2% and 3.3%, or by an average of approximately 2.5% per annum. As a percentage of each of these years' consolidated

earned premiums and fees, the favorable developments have ranged between .5% and 1.3%, and have averaged 1.0%. The variances in prior years' positive or negative claim developments are further discussed within the Incurred Loss Experience section of this document.

In all the above regards the Company anticipates that future periods' financial statements will continue to reflect changes in estimates. As in the past such changes generally result from altered circumstances, the continuum of newly emerging information and its effect on past assumptions and judgments, the effects of securities markets valuations, and changes in inflation rates and future economic conditions beyond the Company's control. As a result, Old Republic cannot predict, quantify, or guaranty the likely impact that probable changes in estimates will have on its future financial condition or results of operations.


~~COVID-19 PANDEMIC AND OLD REPUBLIC'S BUSINESS~~

The COVID-19 pandemic and the associated governmental responses (“COVID-19” or “the pandemic”) had a widespread impact on the U.S. economy beginning in the final weeks of March 2020. While that impact continued throughout the year, economic activity increased as activity restrictions intended to reduce or slow the spread of COVID-19 relaxed to a degree. However, recent increases in COVID-19 infection rates illustrate the persistent nature of the pandemic and the likelihood that it will continue to have a significant economic impact in future periods until widespread vaccinations occur.

Old Republic’s continuing response to the pandemic includes many of the significant operational changes instituted earlier this year. A majority of Old Republic's approximately 9,000 associates are working remotely.

The pandemic's impact on employment levels, businesses and other economic activities contributed to a slight reduction in earned premiums in the General Insurance segment. The Title Insurance segment experienced strong growth in premium and fee revenues. The RFIG Run-off business produced a small underwriting loss due to elevated levels of reported delinquencies.

Financial market performance experienced significant volatility and reductions in market values in the last several weeks of 2020's first quarter, but continued to improve throughout the remainder of the year. The favorable valuation of the investment portfolio, coupled with positive earnings, outpaced cash dividends to shareholders, resulting in book value per share rising to $20.75 at December 31, 2020 compared to $19.98 at December 31, 2019.

The economic impacts from the COVID-19 pandemic could affect future premium and fee revenues in the General Insurance and Title Insurance segments, and conversely underwriting expense ratios could rise. In the RFIG Run-off business, future claims experience could depend upon the continued, mitigating effects of loan forbearance programs mandated by the Federal government, and the rate at which employment levels recover as well as trends in home prices and mortgage interest rates. These outcomes notwithstanding, management firmly believes that the Company’s strong financial condition will enable it to weather these challenges, and most importantly allow its insurance subsidiaries to meet their obligations to customers, policyholders and their beneficiaries.

~~Old Republic - Consolidated~~

~~Impact on business operations~~. Old Republic’s concern for the health of its associates continues to result in the reduction in activity at many of the Company’s offices. Throughout the second half of the year, relaxed governmental restrictions meant that several of Old Republic’s business operations were permitting more associates to return to the office. Even so, most of Old Republic’s associates continue to work remotely. Old Republic experienced no meaningful interruption in its ability to continue to service the needs of customers.

~~Cash and Invested Assets~~. Old Republic’s investment portfolio is managed in consideration of its enterprise-wide risk management objectives. The portfolio emphasis has been on selecting high quality issuers and to ensure the reliable funding of the insurance subsidiaries’ obligations to policyholders and the long-term stability of the subsidiaries’ capital accounts. Old Republic does not have any material investments in illiquid alternative or real estate investments.

Influenced by concerns around COVID-19, U.S. equity markets experienced significant volatility and reductions in market values in the last several weeks of the first quarter. Since then, financial markets have partially rebounded. For the year ended December 31, 2020, the equity portfolio has recognized a $156.2 unrealized loss. Old Republic’s fixed maturity securities portfolio experienced an increase in fair value of $342.7 during the year and no other-than-temporary impairments were identified as of December 31, 2020.

Even with the broad improvement in financial markets, volatility could continue as long as the economy is impacted by COVID-19 and major sectors of the U.S. economy remain under significant pressure. The Company continues to review its fixed maturity investments to monitor the creditworthiness of the issuer. This is especially important in the current environment, where even highly rated issuers are subject to unprecedented stress and certain sectors may be more impacted than others. Old Republic’s portfolio includes exposure to the energy sector, and as a result of reduced energy demand arising from COVID-19, many issuers in this sector are experiencing financial and operating stresses. While these investments remain consistent with the Company’s investment philosophy, they are subject to regular and on-going review.

Old Republic has historically performed stress-testing of the investment portfolio, modeling the impact of significant declines in overall market values on the capital and surplus of its insurance subsidiaries. The investment portfolio’s performance through the pandemic has been largely in-line with the results of these stress tests, and surplus levels remain strong. Old Republic does not contemplate any changes to its investment strategy as a result of COVID-19 and expects the composition of its investment portfolio to remain consistent with the long-term needs of the business.

~~Capital and Liquidity~~. Old Republic believes that its current liquidity position is sufficient to meet its obligations, including claim payments, operating expenses, interest and scheduled repayments on outstanding indebtedness and expected cash dividend payments. The Company’s ability to meet ongoing obligations is supported not only by premium revenue, but also by the expected interest and dividend income associated with Old Republic’s fixed maturity and equity investments. While dividends associated with certain equity investments have been reduced or eliminated as a result of the pandemic, the Company’s investment income was not materially affected.

Given Old Republic’s current capital and liquidity position, the Company does not currently expect to need to raise additional capital, in the form of either debt or equity, to meet expected future obligations. The Company’s nearest debt maturity is $400.0 of senior notes maturing in October 2024. Old Republic believes that it could access debt capital markets in the present environment on reasonable terms, given the Company’s current debt to total capitalization ratio of 13.5% and expected levels of operating income.

~~Internal Controls~~. Old Republic maintains a system of internal controls designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with GAAP. While certain updates have been made to reflect a primarily remote work environment, the Company's internal controls over financial reporting have not materially changed.

~~General Insurance~~

~~Operating environment and product demand~~. The primary coverages in the General Insurance segment, as measured on year-to-date 2020 net premiums earned, are commercial auto (38.4%), workers’ compensation (25.4%), inland marine and property (8.7%), financial indemnity (8.0%) and general liability (6.0%).

Demand for each of these coverages is related to overall economic conditions and this macroeconomic effect can be compounded (or mitigated) by exposure to sectors that are more (or less) affected by the particular economic environment. For example, premiums associated with workers' compensation coverage typically fall with reductions in payroll. However, the Company’s exposure to many of the most significantly affected sectors, such as small business, hospitality, restaurants and travel, is limited, which reduces to a degree Old Republic’s COVID-19 exposure. During 2020, the impact of COVID-19 on demand for General Insurance products continued to be relatively modest. However, the full impact of the pandemic will not be known until all policy premiums are audited in connection with the annual policy term expiration. The magnitude of the effect of COVID-19 on demand in future periods will continue to depend on the duration and severity of the pandemic.

~~Claims~~. Claims experience reflects changes in pricing and risk selection together with variability in loss severity and frequency trends. The overall impact of COVID-19 on 2020 claims experience was not significant as increased workers’ compensation claims were largely offset by reduced frequency and severity of non-COVID related claims.

Claims activity for certain coverages is correlated with U.S. economic activity, therefore claims frequency and severity for these coverages could both be affected by COVID-19. However, as noted below, Old Republic’s risk sharing arrangements should mitigate the negative effects of increases in frequency and severity.

~~Reserves~~. Establishing claims reserves for the General Insurance business is a complex and dynamic process that requires a significant amount of judgment in an ordinary operating environment. That process and the judgment involved are made more complicated by the disruptions caused by COVID-19. Old Republic has not made significant changes to reserves or reserving practices during the year. That approach may change as clarity emerges over time about the actual effects of COVID-19 on the various businesses. The Company may adjust its expected claims rates, loss development factors and average claim costs for certain products if those factors look to be significantly impacted by COVID-19. To the extent any such loss development factor adjustments cause a change to reserves, earnings could be impacted in the period of such change.

~~Reinsurance and Retention Limits~~. Old Republic uses external reinsurance and other risk-sharing arrangements to limit the maximum losses for which it may be liable under its policies. Old Republic has risk-sharing arrangements in place for many of the coverages that have been impacted by COVID-19. In addition, Old Republic’s reinsurance arrangements may limit the negative impact of the pandemic for certain other coverages.

Consistent with its existing practices, Old Republic monitors on an on-going basis the financial condition of its assuming reinsurers and assureds who purchase its retrospectively rated or self-insured deductible policies and obtains sufficient collateral in the form of letters of credit, securities and other financial instruments. Old Republic continuously monitors the sufficiency of this collateral and the credit risk of its counterparties.

~~Regulation~~. Old Republic’s insurance company subsidiaries are subject to on-going regulation by state insurance departments. In response to COVID-19, insurance departments have been active in publishing additional guidance and other regulatory actions that impact the business. This regulatory guidance primarily relates to the collection of

premium, the cancellation or non-renewal of policies, presumption of coverage and notice periods relating to claims. These regulatory initiatives did not have a significant impact on Old Republic during 2020.

~~Title Insurance~~

~~Operating environment and product demand.~~ In 2020, net premium and fees earned in the Title segment reached all-time full year highs. Notwithstanding the severe impact on the U.S. economy caused by COVID-19, the demand for title insurance coverage was strong during the year.

The demand for title insurance products is correlated with the strength of the residential and commercial real estate markets. While COVID-19 and the resulting restrictions on in-person gatherings and reduction in business activity had a negative impact on the broader U.S. economy, the residential real estate markets, and thus the demand for title insurance, remained robust during 2020. The impact continues to be felt however in the commercial real estate markets with COVID-19 uncertainties creating a reduction in business activity. Many of the key indicators used to evaluate the Title business, such as open orders, were at elevated levels at December 31, 2020. However, if COVID-19 continues to have a negative effect on the U.S. economy, it could lead to an eventual reduction in demand for our products and lower operating revenues.

~~Regulation~~. The housing market and the real estate lending industry are heavily regulated and there have been regulatory responses to the pandemic. These regulatory initiatives include those targeted at aiding consumers, which may ultimately have a significant impact on mortgage lenders and investors in pooled mortgage products. This could decrease the availability of mortgage funding, negatively impacting the housing market and thus the demand for Title insurance. While these initiatives have not had a significant effect on the Title business at December 31, 2020, they may have an increasing effect in subsequent quarters.

~~Claims. The effects of COVID-19 on the U.S. real estate market did not materially affect claims experience for the year ended December 31, 2020.~~

~~RFIG Run-Off Business~~

~~Operating environment and product demand.~~ As noted elsewhere, Old Republic’s RFIG run-off business, led by its principal insurance carriers Republic Mortgage Insurance Company ("RMIC") and Republic Mortgage Guaranty Insurance Corporation ("RMGIC"), ceased writing new mortgage guaranty insurance in 2011. The operating results for all periods presented reflect the expected, continuing drop in net earned premiums from declining risk in force.

~~Regulation~~. The North Carolina Department of Insurance ("NCDOI") performs regulatory oversight of RMIC and RMGIC. Based on their capital position as of December 31, 2019 and on updated projections as to future operating results and capital levels, RMIC and RMGIC sought and received approval from the NCDOI to pay extraordinary dividends amounting to $37.5 to ORI, its ultimate parent, during the first quarter of 2020. Neither company has paid dividends subsequent to the first quarter of 2020.

~~Capital.~~ As of December 31, 2020, total statutory capital for the group, inclusive of a contingency reserve, totaled $435.2. Old Republic continually monitors its capital position based on financial estimates of operating results over the remaining run-off period. Given the adverse effects of COVID-19 on the U.S. economy, unemployment levels, and housing markets, it could be necessary to retain more capital in the mortgage insurance business than previously thought until the true effects on operations and capital become more apparent. In any event, the payment of future extraordinary dividends will require regulatory approval from the NCDOI.

~~Claims~~. ~~The economic impact of COVID-19 led to an increase in the number of reported delinquencies~~ resulting in higher claim reserves and incurred losses, although such trends stabilized in the latter half of the year. Changes in U.S. employment levels and in the residential real estate markets could affect mortgage insurance claims. Future claim experience will depend on factors such as, among others, the mitigating effects of extensive loan forbearance programs mandated by the Federal government under the Coronavirus Aid, Relief, and Economic Security Act, or CARES Act, future governmental stimulus initiatives, and the rate at which the overall economy, and in particular employment levels, recover once extensive mandates intended to mitigate the transmission of COVID-19 are revised or lifted.


~~FINANCIAL POSITION~~

The Company's financial position at December 31, 2020 reflected increases in assets, liabilities and common shareholders' equity of 8.3%, 10.3% and 3.1%, respectively, when compared to the immediately preceding year-end. Cash and invested assets represented 68.1% and 68.9% of consolidated assets as of December 31, 2020 and 2019, respectively. As of year-end 2020, the cash and invested asset base increased by 6.9% to $15,535.3.

~~Investments~~ - During 2020 and 2019, the Company committed the majority of investable funds to short to intermediate-term fixed maturity securities and higher yielding publicly traded large capitalization equity securities. Old Republic continues to adhere to its long-term policy of investing primarily in investment grade, marketable securities. At both December 31, 2020 and 2019, nearly all of the Company's investments consisted of marketable securities. The investment portfolio contains no significant insurance risk-correlated asset exposures to real estate, mortgage-backed securities, collateralized debt obligations ("CDO's"), derivatives, hybrid securities, or illiquid private equity and hedge fund investments. Moreover, the Company does not engage in hedging or securities lending transactions, nor

does it invest in securities whose values are predicated on non-regulated financial instruments exhibiting amorphous or unfunded counter-party risk attributes. At December 31, 2020, the Company had no fixed maturity investments in default as to principal and/or interest.

Short-term maturity investment positions reflect a large variety of seasonal and intermediate-term factors including current operating needs, expected operating cash flows, seasonality of quarterly cash flow, debt maturities, and investment strategy considerations. Accordingly, the future level of short-term investments will vary and respond to the interplay of these factors and may, as a result, increase or decrease from current levels.

The Company does not own or utilize derivative financial instruments for the purpose of hedging, enhancing the overall return of its investment portfolio, or reducing the cost of its debt obligations. With regard to its equity portfolio, the Company does not own any options nor does it engage in any type of option writing. Traditional investment management tools and techniques are employed to address the yield and valuation exposures of the invested assets base. The long-term fixed maturity investment portfolio is managed so as to limit various risks inherent in the bond market. Credit risk is addressed through asset diversification and the purchase of investment grade securities. Reinvestment rate risk is reduced by concentrating on non-callable issues, and by taking asset-liability matching considerations into account. Purchases of mortgage and asset backed securities, which have variable principal prepayment options, are generally avoided. Market value risk is limited through the purchase of bonds of intermediate maturity. The combination of these investment management practices is expected to produce a more stable long-term fixed maturity investment portfolio that is not subject to extreme interest rate sensitivity and principal deterioration.

The fair value of the Company's long-term fixed maturity investment portfolio is sensitive, however, to fluctuations in the level of interest rates, but not materially affected by changes in anticipated cash flows caused by any prepayments. The impact of interest rate movements on the long-term fixed maturity investment portfolio generally affects net unrealized gains or losses. As a general rule, rising interest rates enhance currently available yields but typically lead to a reduction in the fair value of existing fixed maturity investments. By contrast, a decline in such rates reduces currently available yields but usually serves to increase the fair value of the existing fixed maturity investment portfolio. All such changes in fair value of available for sale securities are reflected, net of deferred income taxes, directly in the shareholders' equity account, and as a separate component of the statement of comprehensive income. Fixed maturity securities classified as held to maturity are carried at amortized cost, and therefore, fluctuations in unrealized gains and losses do not impact shareholders' equity. Given the Company's inability to forecast or control the movement of interest rates, Old Republic sets the maturity spectrum of its fixed maturity securities portfolio within parameters of estimated liability payouts, and focuses the overall portfolio on high quality investments. By so doing, Old Republic believes it is reasonably assured of its ability to hold securities to maturity as it may deem necessary in changing environments, and of ultimately recovering their aggregate cost.

Possible future declines in fair values for Old Republic's available for sale fixed maturity portfolio would negatively affect the common shareholders' equity account at any point in time, but would not necessarily result in the recognition of realized investment losses. 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 in the portfolio's value are evaluated and established at each quarterly balance sheet date. In reviewing investments for other-than-temporary impairment, 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 other-than-temporary impairments is insufficient at any point in time, future periods' net income (loss) would be affected adversely by the recognition of additional impairment losses, but its financial condition would not necessarily be affected adversely inasmuch as such losses, or a portion of them, could have been recognized previously as unrealized losses in shareholders' equity.

~~The following tables show certain information relating to the Company's fixed maturity and equity portfolios as of the dates shown:~~

Credit Quality Ratings of Fixed Maturity Securities (a)
December 31: 2020 2019
Aaa 24.6 % 23.9 %
Aa 13.1 13.1
A 33.0 32.6
Baa 26.5 26.1
Total investment grade 97.2 95.7
All other (b) 2.8 4.3
Total 100.0 % 100.0 %

~~__________~~

(a) Credit quality ratings referred to herein are a blend of those assigned by the major credit rating agencies for U.S. and Canadian Governments, Agencies, Corporates and Municipal issuers, which are converted to the above ratings classifications.

~~(b) "All other" includes non-investment grade or non-rated issuers.~~

Gross Unrealized Losses Stratified by Industry Concentration for Non-Investment Grade Fixed Maturity Securities
December 31, 2020 Amortized
Cost Gross
Unrealized
Losses
Fixed Maturity Securities by Industry Concentration:
Energy $ 29.0 $ 1.4
Total $ 29.0 (c) $ 1.4

~~__________~~

~~(c) Represents 0.3% of the total fixed maturity portfolio.~~

Gross Unrealized Losses Stratified by Industry Concentration for Investment Grade Fixed Maturity Securities
December 31, 2020 Amortized
Cost Gross
Unrealized
Losses
Fixed Maturity Securities by Industry Concentration:
Insurance $ 34.1 $ .5
U.S. Government & Agencies 411.9 .3
Utilities 60.6 .3
Consumer Staples 42.2 .2
Other (includes 14 industry groups) 175.9 .8
Total $ 724.8 (d) $ 2.3

~~__________~~

~~(d) Represents 7.3% of the total fixed maturity portfolio.~~

Gross Unrealized Losses Stratified by Industry Concentration for Equity Securities
December 31, 2020 Cost Gross
Unrealized
Losses
Equity Securities by Industry Concentration:
Energy $ 536.8 $ 176.8
Retail 73.0 20.9
Telecom 108.5 12.6
Utilities 112.6 12.5
Other (includes 3 industry groups) 167.0 20.1
Total $ 998.2 (e) $ 243.0 (f)

~~__________~~

~~(e) Represents 30.5% of the total equity portfolio.~~

~~(f) Represents 7.4% of the cost of the total equity portfolio, while gross unrealized gains represent 31.4% of the equity portfolio.~~

Gross Unrealized Losses Stratified by Maturity Ranges for All Fixed Maturity Securities
Amortized Cost
of Fixed Maturity Securities Gross Unrealized Losses
December 31, 2020 All Non-Investment Grade Only All Non-
Investment
Grade Only
Maturity Ranges:
Due in one year or less $ 5.2 $ — $ — $ —
Due after one year through five years 407.2 16.1 .6 .4
Due after five years through ten years 285.9 12.8 2.8 1.0
Due after ten years 55.4 — .3 —
Total $ 753.8 $ 29.0 $ 3.8 $ 1.4

Gross Unrealized Losses Stratified by Duration and Amount of Unrealized Losses for All Fixed Maturity Securities
Amount of Gross Unrealized Losses
December 31, 2020 Less than
20% of
Cost 20% to
50%
of Cost More than
50% of Cost Total Gross
Unrealized
Loss
Number of Months in Unrealized Loss Position:
Fixed Maturity Securities:
One to six months $ 2.3 $ — $ — $ 2.3
Seven to twelve months 1.4 — — 1.4
More than twelve months — — — —
Total $ 3.8 $ — $ — $ 3.8
Number of Issues in Unrealized Loss Position:
Fixed Maturity Securities:
One to six months 68 — — 68
Seven to twelve months 6 — — 6
More than twelve months 3 — — 3
Total 77 — — 77 (g)

~~__________~~

~~(g) At December 31, 2020 the number of issues in an unrealized loss position represent 4.1% of the total number of such fixed maturity issues held by the Company.~~

The aging of issues with unrealized losses employs balance sheet date fair value comparisons with an issue's cost. The percentage reduction from such cost reflects the decline as of a specific point in time (December 31, 2020 in the above table) and, accordingly, is not indicative of a security's value having been consistently below its cost at the percentages shown nor throughout the periods shown.

Age Distribution of Fixed Maturity Securities
December 31: 2020 2019
Maturity Ranges:
Due in one year or less 9.8 % 10.7 %
Due after one year through five years 57.0 55.6
Due after five years through ten years 31.4 33.4
Due after ten years through fifteen years 1.7 .3
Due after fifteen years .1 —
Total 100.0 % 100.0 %
Average Maturity in Years 4.3 4.1
Duration (h) 3.8 3.7

~~___________~~

(h) Duration is used as a measure of bond price sensitivity to interest rate changes. A duration of 3.8 as of December 31, 2020 implies that a 100 basis point parallel increase in interest rates from current levels would result in a possible decline in the fair value of the long-term fixed maturity investment portfolio of approximately 3.8%.

Composition of Unrealized Gains (Losses)
December 31: 2020 2019
Available for Sale Fixed Maturity Securities:
Amortized cost $ 9,897.6 $ 8,537.3
Estimated fair value 10,496.8 8,796.5
Net unrealized gains (losses) $ 599.1 $ 259.1
Components of net unrealized gains (losses):
Gross unrealized gains $ 602.9 $ 262.5
Gross unrealized losses (3.8) (3.3)
Net unrealized gains (losses) $ 599.1 $ 259.1
Equity Securities:
Original cost $ 3,269.7 $ 3,089.1
Estimated fair value 4,054.8 4,030.5
Net unrealized gains (losses)(i) $ 785.1 $ 941.3
Components of net unrealized gains (losses):
Gross unrealized gains $ 1,028.1 $ 968.0
Gross unrealized losses (243.0) (26.6)
Net unrealized gains (losses)(i) $ 785.1 $ 941.3

~~___________~~

~~(i) Unrealized gains and losses from changes in fair value of equity securities are included in total realized and unrealized investment gains (losses) in the consolidated statements of income.~~

~~Other Assets~~ - Among other major assets, substantially all of the Company's receivables are not past due. Reinsurance recoverable balances on paid or estimated unpaid losses are deemed recoverable from solvent reinsurers or have otherwise been reduced by allowances for estimated credit losses. Deferred policy acquisition costs are estimated by taking into account the direct costs relating to the successful acquisition of new or renewal insurance contracts and evaluating their recoverability on the basis of recent trends in claims costs. The Company's deferred policy acquisition cost balances have not fluctuated substantially from period-to-period, and do not represent significant percentages of assets or shareholders' equity.

~~Liquidity~~ - The parent holding company meets its liquidity and capital needs principally through dividends and interest on intercompany financing arrangements paid by its subsidiaries. The insurance subsidiaries' ability to pay

cash dividends to the parent company is generally restricted by law or subject to approval of the insurance regulatory authorities. The Company can receive up to $699.3 in dividends from its subsidiaries in 2021 without the prior approval of regulatory authorities. The liquidity achievable through such permitted dividend payments is considered sufficient to cover the parent holding company's currently expected cash outflows represented mostly by interest and scheduled repayments on outstanding debt, reasonably anticipated cash dividend payments to shareholders, modest operating expenses, and the near-term capital needs of its operating subsidiaries.

~~Capitalization~~ - Old Republic's total capitalization of $7,153.1 at December 31, 2020 consisted of debt of $966.4 and common shareholders' equity of $6,186.6. Changes in the common shareholders' equity account reflect primarily net income excluding net investment gains (losses), realized and unrealized gains (losses), and dividend payments to shareholders for the year then ended.

Old Republic has paid a cash dividend without interruption since 1942 (79 years), and it has raised the annual cash dividend payment for each of the past 39 years. The dividend rate is reviewed and approved by the Board of Directors on a quarterly basis each year. In establishing each year's cash dividend rate the Company does not follow a strict formulaic approach. Rather, it favors a gradual rise in the annual dividend rate that is largely reflective of long-term consolidated operating earnings trends. Accordingly, each year's dividend rate is set judgmentally in consideration of such key factors as the dividend paying capacity of the Company's insurance subsidiaries, the trends in average annual statutory and GAAP earnings for the five to ten most recent calendar years, and management's long-term expectations for the Company's consolidated business and its individual operating subsidiaries. The Company's Board of Directors declared special cash dividends of $1.00 per share in December 2020 (payable on January 15, 2021), September 2019 and December 2017 (paid on January 31, 2018).

Under state insurance regulations, the Company's three mortgage guaranty insurance subsidiaries are required to hold minimum amounts of capital based on specified formulas. Since the Company's mortgage insurance subsidiaries have discontinued writing new business the risk-to-capital ratio considerations are therefore no longer of consequence.

~~Contractual Obligations~~ - ~~The following table shows certain information relating to the required reporting of contractual obligations as of December 31, 2020:~~

2021 2022 and
2023 2024 and
2025 2026 and
After Total
Contractual Obligations:
Debt $ 21.7 $ — $ 400.0 $ 550.0 $ 971.7
Interest on Debt 40.8 81.6 62.1 21.3 205.9
Operating Leases 61.3 97.8 61.2 96.4 316.8
Pension Benefits Contributions (a) — 17.8 27.2 26.3 71.3
Claim & Claim Expense Reserves (b) 2,813.1 2,468.0 1,430.8 3,959.0 10,671.0
Total $ 2,937.1 $ 2,665.2 $ 1,981.4 $ 4,653.1 $ 12,236.9

~~__________~~

(a) Represents estimated minimum funding of contributions for the Old Republic International Salaried Employees Retirement Plan. Funding of the plan is dependent on a number of factors including actual performance versus actuarial assumptions made at the time of the actuarial valuation, as well as the maintenance of certain funding levels relative to regulatory requirements.

(b) Amounts are reported gross of reinsurance. As discussed herein with respect to the nature of loss reserves and the estimating process utilized in their establishment, the Company's loss reserves do not have a contractual maturity date. Estimated gross loss payments are based primarily on historical claim payment patterns, are subject to change due to a wide variety of factors, do not reflect anticipated recoveries under the terms of reinsurance contracts, and cannot be predicted with certainty. Actual future loss payments may differ materially from the current estimates shown in the table above.


RESULTS OF OPERATIONS


~~Revenues:~~ Consolidated Overview


Premiums & Fees

~~Pursuant to GAAP applicable to the insurance industry, revenues are recognized as follows:~~

Substantially all general insurance premiums pertain to annual policies and are reflected in income on a pro-rata basis in association with the related benefits, claims and expenses. Earned but unbilled premiums are generally taken into income on the billing date, while adjustments for retrospective premiums, commissions and similar charges or credits are accrued on the basis of periodic evaluations of current underwriting experience and contractual obligations.

Title premium and fee revenues stemming from the Company's direct operations (which include branch offices of its title insurers and wholly owned agency subsidiaries) represent approximately 25% of 2020 consolidated title business revenues. Such premiums are generally recognized as income at the escrow closing date which approximates the policy effective date. Fee income related to escrow and other closing services is recognized when the related services have been performed and completed. The remaining 75% of consolidated title premium and fee revenues is produced by independent title agents and underwritten title companies. Rather than making estimates that could be subject to significant variance from actual premium and fee production, the Company recognizes revenues from those sources upon receipt. Such receipts can reflect a three to four month lag relative to the effective date of the underlying title policy, and are offset concurrently by production expenses and claim reserve provisions.

The Company's mortgage guaranty premiums primarily stem from monthly installments paid on long-duration, guaranteed renewable insurance policies. Such premiums are written and earned in the month coverage is effective. With respect to relatively few annual or single premium policies, earned premiums are largely recognized on a pro-rata basis over the terms of the policies.

The major sources of Old Republic's consolidated earned premiums and fees for the periods shown were as follows:

Earned Premiums and Fees
General Title (*) RFIG Run-off Other Total (*) % Change
from prior
period (*)
Years Ended December 31:
2018 $ 3,277.1 $ 2,573.1 $ 75.9 $ 14.6 $ 5,940.9 3.0 %
2019 3,432.4 2,736.0 59.2 13.4 6,241.1 5.1
2020 $ 3,394.2 $ 3,286.3 $ 45.1 $ 12.0 $ 6,737.8 8.0 %

~~__________~~


	Net Earned Premiums and Fees
Years Ended December 31:	2023			2022			2021
General Insurance	$	4,119.2		$	3,808.6		$	3,555.5
Title Insurance	2,562.8			3,833.8			4,404.3
RFIG Run-off	16.4			23.2			32.6
Corporate & Other	9.1			9.6			11.0
Total	$	6,707.7		$	7,675.3		$	8,003.6
Percentage change from prior period	(12.6)		%	(4.1)		%	18.8		%

(*) Reclassification adjustments were made to certain Title segment revenues and expenses in prior periods to conform to the presentation adopted in 2020. See Note 1(c) to the accompanying Notes to Consolidated Financial Statements.

~~General insurance~~For 2023, consolidated net premiums and fees earned ~~were down slightly for 2020.~~declined 12.6%. The ~~economic impacts of the COVID-19 pandemic~~continued decline in Title Insurance net premiums and ~~tightened underwriting standards were mitigated~~fees was partially offset by strong ~~premium rate increases for most insurance products. Declining workers' compensation~~growth in General Insurance. For 2022, consolidated net premiums and ~~general liability premiums were largely~~fees earned declined 4.1%, reflecting a decrease in Title Insurance of 13.0%, offset by ~~rising premiums~~growth in commercial auto, financial indemnity and property coverages. With few exceptions, 2019 premiums grew for most types of coverages and markets served. The largest contributions principally stemmed from commercial automobile (trucking), national accounts and executive indemnity coverages.

Title Group premium and fee revenues grew by 20.1% and 6.3% in 2020 and 2019, respectively. This performance was driven by a robust real estate market supported by a continued low interest rate environment, resulting in an increase in home sales and refinancing activity.

~~RFIG Run-off earned premium volume has reflected a continuing decline due to the natural outcome of a run-off book of business devoid of new premium production since 2011.~~

~~The percentage allocation of net premiums earned for major insurance coverages in the~~ General Insurance ~~Group was as follows:~~

General Insurance Earned Premiums by Type of Coverage
Commercial
Automobile
(mostly
trucking) Workers' Compensation Financial
Indemnity Inland
Marine
and
Property General
Liability Other
Years Ended December 31:
2018 36.8 % 31.1 % 5.3 % 7.7 % 6.2 % 12.9 %
2019 37.2 29.1 6.4 7.6 6.6 13.1
2020 38.4 % 25.4 % 8.0 % 8.7 % 6.0 % 13.5 %

~~The following table shows the percentage distribution~~ of ~~Title Group premium and fee revenues by production sources:~~

Title Premium and Fee Production by Source (*)
Direct
Operations Independent
Title
Agents &
Other
Years Ended December 31:
2018 23.7 % 76.3 %
2019 24.9 75.1
2020 24.9 % 75.1 %

~~__________~~

~~The following tables provide information on production and related risk exposure trends for Old Republic's mortgage guaranty insurance operation:~~

Persistency
Premium and Persistency Trends by Type: Net Earned Premiums Traditional
Primary Bulk
Years Ended December 31:
2018 $ 74.4 79.7 % 76.3 %
2019 58.8 77.1 84.5
2020 $ 45.1 77.1 % 84.1 %

~~The Company's flagship mortgage guaranty insurance carrier ceased the underwriting of new policies effective August 31, 2011 and the existing book of business was placed in run-off operating mode.~~

While there is no consensus in the marketplace as to the precise definition of "sub-prime", Old Republic generally views loans with credit (FICO) scores less than 620, loans underwritten with reduced levels of documentation and loans with loan to value ratios in excess of 95% as having a higher risk of default. Risk in force concentrations by these attributes are disclosed in the following tables for both traditional primary and bulk production. Premium rates for loans exhibiting greater risk attributes are typically higher in anticipation of potentially greater defaults and claim costs. Additionally, bulk insurance policies, which represent 8.2% of total net risk in force as of year-end 2020, are frequently subject to deductibles and aggregate stop losses which serve to limit the overall risk on a pool of insured loans.

Net Risk in Force
Net Risk in Force By Type: Traditional
Primary Bulk Other Total
As of December 31:
2018 $ 3,098.3 $ 235.3 $ 11.2 $ 3,345.0
2019 2,388.3 198.2 3.6 2,590.1
2020 $ 1,842.2 $ 165.4 $ 3.6 $ 2,011.2

Analysis of Risk in Force
Risk in Force Distribution By FICO Scores: FICO less
than 620 FICO 620
to 680 FICO
Greater
than 680 Unscored/
Unavailable
Traditional Primary:
As of December 31:
2018 7.9 % 32.2 % 59.1 % .8 %
2019 8.5 33.8 56.8 .9
2020 9.3 % 34.8 % 55.0 % .9 %
Bulk(a):
As of December 31:
2018 33.6 % 31.5 % 34.8 % .1 %
2019 34.4 31.2 34.2 .2
2020 35.4 % 31.7 % 32.7 % .2 %

Risk in Force Distribution By Loan to Value ("LTV") Ratio: LTV
85.0
and below LTV
85.01
to 90.0 LTV
90.01
to 95.0 LTV
Greater
than 95.0
Traditional Primary(b):
As of December 31:
2018 4.1 % 30.7 % 29.7 % 35.5 %
2019 4.1 30.7 28.4 36.8
2020 4.0 % 31.2 % 27.9 % 36.9 %
Bulk(a):
As of December 31:
2018 43.4 % 30.9 % 13.1 % 12.6 %
2019 42.7 31.4 13.7 12.2
2020 42.7 % 32.0 % 13.6 % 11.7 %

~~__________~~

~~(a) Bulk pool risk in-force, which represented 6.8% of total bulk risk in-force at December 31, 2020, has been allocated pro-rata based on insurance in-force.~~

~~(b) The LTV distribution reflects base LTV ratios which are determined prior to the impact of single premiums financed and paid at the time of loan origination.~~

~~Risk in Force Distribution By Top Ten States:~~

Traditional Primary
TX FL GA IL CA NJ PA NY VA MD
As of December 31:
2018 5.5 % 8.5 % 6.0 % 6.4 % 4.9 % 4.8 % 4.3 % 3.8 % 3.8 % 4.6 %
2019 4.8 9.0 6.1 6.9 5.1 5.2 4.2 3.9 3.9 5.1
2020 4.4 % 9.3 % 6.0 % 7.2 % 5.2 % 5.5 % 4.1 % 3.9 % 3.9 % 5.3 %

Bulk (a)
TX FL GA IL CA MO PA NY OH MD
As of December 31:
2018 5.6 % 8.2 % 5.4 % 4.6 % 12.4 % 2.6 % 4.0 % 7.1 % 4.7 % 2.8 %
2019 5.5 8.1 5.6 4.7 12.7 2.8 3.8 7.1 4.9 3.0
2020 5.5 % 8.0 % 5.7 % 5.0 % 12.9 % 2.8 % 4.1 % 7.4 % 4.9 % 3.0 %

Risk in Force Distribution By Level of Documentation: Full
Documentation Reduced
Documentation
Traditional Primary:
As of December 31:
2018 92.2 % 7.8 %
2019 91.8 8.2
2020 91.4 % 8.6 %
Bulk (a):
As of December 31:
2018 71.8 % 28.2 %
2019 72.6 27.4
2020 72.8 % 27.2 %

Risk in Force Distribution By Loan Type: Fixed Rate
& ARMs
with Resets
>=5 Years ARMs with
Resets <5
years
Traditional Primary:
As of December 31:
2018 97.2 % 2.8 %
2019 97.1 2.9
2020 97.0 % 3.0 %
Bulk (a):
As of December 31:
2018 68.6 % 31.4 %
2019 68.0 32.0
2020 67.1 % 32.9 %

~~__________~~

~~(a) Bulk pool risk in-force, which represented 6.8% of total bulk risk in-force at December 31, 2020, has been allocated pro-rata based on insurance in-force.~~7.1%.


~~Revenues:~~ Net Investment Income

~~Net investment income is affected by trends in interest and dividend yields for the types of securities in which the Company's funds are invested during each reporting period.~~ The following tables reflect the ~~segmented and consolidated~~ invested asset bases as of the indicated dates, ~~and~~ the investment income earned and resulting yields on such assets. ~~Since~~Because the Company can exercise little control over fair values, management evaluates yields ~~are evaluated~~ on the basis of investment income earned in relation to the cost of the underlying invested ~~assets, though yields based on the fair values of such assets are also shown in the statistics below.~~assets.

Invested Assets at Cost Fair
Value
Adjust-
ment Invested
Assets as Reported (a)
General Title RFIG Run-off Corporate
and Other Total
As of December 31:
2019 $ 10,577.9 $ 1,172.3 $ 566.3 $ 841.7 $ 13,158.4 $ 1,200.7 $ 14,359.2
2020 $ 10,987.8 $ 1,328.4 $ 545.1 $ 1,083.8 $ 13,945.2 $ 1,384.9 $ 15,330.1


	Invested Assets at Cost										Fair Value Adjust- ment		Invested Assets at Fair Value
	General Insurance		Title Insurance		RFIG Run-off (a)		Corporate & Other		Total
As of December 31:
2022	$	11,825.2	$	1,512.4	$	341.6	$	1,500.1	$	15,179.4	$	680.4	$	15,859.9
2023	$	12,030.5	$	1,350.2	$	25.2	$	1,438.5	$	14,844.5	$	1,023.1	$	15,867.7

__________

(a) ~~The~~At December 31, ~~2019~~2023, the Company classified its RFIG Run-off mortgage insurance business as held-for-sale in its consolidated balance ~~includes fixed maturity securities~~sheet. See Note 2 in the Notes to Consolidated Financial Statements for further discussion.


	Net Investment Income										Yield at
	General Insurance		Title Insurance		RFIG Run-off		Corporate & Other		Total		Cost		Fair Value
Years Ended
December 31:
2021	$	342.4	$	43.8	$	11.4	$	36.5	$	434.3	3.02	%	2.72	%
2022	358.0		47.9		6.7		46.8		459.5		3.07		2.83
2023	$	462.7	$	57.0	$	6.3	$	52.2	$	578.3	3.82	%	3.62	%

Net investment income increased 25.8% in 2023, driven by higher investment yields earned. Net investment income increased by 5.8% in 2022, reflecting growth in the invested asset base and higher investment yields earned.


Loss and Loss Adjustment Expenses

Total loss costs are affected by the amount of paid claims and the adequacy of reserve estimates established for current and prior years' claim occurrences at each balance sheet date.

The following table shows a breakdown of gross and net of reinsurance loss reserve estimates for major types of insurance coverages as of December 31, 2023 and 2022:


			Loss and Loss Adjustment Expense Reserves
December 31:			2023						2022
			Gross			Net			Gross			Net
Workers' compensation			$	4,723.5		$	2,725.3		$	4,855.2		$	2,879.6
Commercial auto			3,492.8			1,808.4			3,233.9			1,747.3
General liability			1,518.8			705.5			1,427.3			641.9
Other coverages			1,890.3			1,412.5			1,707.8			1,260.0
Unallocated loss adjustment expense reserves			303.3			303.3			296.9			295.8
		Total general insurance reserves	11,928.9			6,955.2			11,521.2			6,824.8
Title			598.5			598.5			612.8			612.8
RFIG Run-off (a)			—			—			77.9			77.9
Life and accident			10.7			6.6			9.4			6.3
		Total loss and loss adjustment expense reserves	$	12,538.2		$	7,560.4		$	12,221.5		$	7,521.9
Asbestosis and environmental loss reserves included
	in the above general insurance reserves:
		Amount	$	130.6		$	87.5		$	121.3		$	84.0
		% of total general insurance reserves	1.1		%	1.3		%	1.1		%	1.2		%

__________

(a) RFIG Run-off loss and loss adjustment expense reserves of $54.9 on both a gross and net basis have been classified as ~~held~~held-for-sale as of December 31, 2023. See Note 2 in the Notes to ~~maturity~~Consolidated Financial Statements for further discussion.

A summary of changes in aggregate reserves for loss and loss adjustment expenses is included in Note 5 in the Notes to Consolidated Financial Statements.

The percentage of net loss and loss adjustment expenses incurred as a percentage of premiums and related fee revenues of the Company's three reportable segments and for consolidated operations were as follows:


Years Ended December 31:	2023		2022		2021
General Insurance	62.0	%	62.1	%	64.8	%
Title Insurance	1.9		2.3		2.6
RFIG Run-off	(66.9)		(75.5)		(5.3)
Consolidated loss ratio	38.7	%	31.8	%	30.2	%

Reconciliation of consolidated loss ratio:
Provision for insured events of the current year	43.3	%	35.5	%	32.9	%
Change in provision for insured events of prior years:
Net favorable development	(4.6)		(3.7)		(2.7)
Consolidated loss ratio	38.7	%	31.8	%	30.2	%

The consolidated loss ratio reflects the changing contributions of each segment to consolidated results, and this ratio's variances within each segment. The increase in the 2023 consolidated loss and loss adjustment expense ratio is primarily due to a change in mix commensurate with the drop in Title Insurance premiums which ~~are reported~~carry lower loss and ~~reflected herein~~loss adjustment expense ratios.

For the three most recent calendar years, the above table indicates that the one-year development of consolidated reserves at ~~amortized cost.~~the beginning of each year produced favorable developments in 2023, 2022, and 2021, which on average decreased the consolidated loss ratio by 3.7% percentage points. Both General Insurance and Title Insurance experienced increased levels of favorable development in relation to earned premiums in 2023. Favorable development in General Insurance continued to be experienced within workers’ compensation and commercial auto lines of coverage. The increase in favorable development as a percentage of net premiums and fees earned experienced within Title Insurance was impacted by declining premium levels in 2023.

4935

Net Investment Income Yield at
General Title RFIG Run-off Corporate
and Other Total Original
Cost Fair
Value
Years Ended
December 31:
2018 $ 341.0 $ 38.8 $ 20.1 $ 31.7 $ 431.8 3.41 % 3.28 %
2019 356.4 41.4 17.6 35.1 450.7 3.48 3.30
2020 $ 352.2 $ 42.0 $ 15.2 $ 29.4 $ 438.9 3.24 % 2.96 %

~~Consolidated~~


Delaware						36-2678171
(State or other jurisdiction of						(IRS Employer Identification No.)
incorporation or organization)


Large accelerated filer	☒	Accelerated filer	☐

Non-accelerated filer	☐	Smaller reporting company	☐

		Emerging growth company	☐


			($ in Millions)
Years Ended December 31:			2023			2022			2021
General Insurance:
	Overall Experience:
		Net Premiums Earned	$	4,119.2		$	3,808.6		$	3,555.5
		Loss Ratio	62.0		%	62.1		%	64.8		%
		Expense Ratio	28.2			27.4			26.5
		Combined Ratio	90.2		%	89.5		%	91.3		%

	Experience by Major Coverages:
	Commercial Auto:
		Net Premiums Earned	$	1,689.4		$	1,505.2		$	1,408.6
		Loss Ratio	71.5		%	66.6		%	71.5		%

	Workers' Compensation:
		Net Premiums Earned	$	802.2		$	811.8		$	778.6
		Loss Ratio	41.4		%	45.9		%	58.9		%

	General Liability:
		Net Premiums Earned	$	251.8		$	196.2		$	184.4
		Loss Ratio	76.0		%	71.6		%	64.1		%

	Financial Indemnity: (a)
		Net Premiums Earned	$	347.7		$	391.7		$	344.0
		Loss Ratio	48.2		%	67.0		%	53.9		%

	Property: (b)
		Net Premiums Earned	$	473.1		$	374.0		$	345.3
		Loss Ratio	61.0		%	65.4		%	59.3		%

	Home and Auto Warranty:
		Net Premiums Earned	$	311.4		$	330.4		$	336.5
		Loss Ratio	65.5		%	66.9		%	67.9		%

	Other Coverages: (c)
		Net Premiums Earned	$	243.3		$	199.0		$	157.8
		Loss Ratio	65.9		%	60.4		%	63.8		%

Title Insurance: (d)
		Net Premiums & Fees Earned	$	2,562.8		$	3,833.8		$	4,404.3
		Loss Ratio	1.9		%	2.3		%	2.6		%
		Expense Ratio	95.2			90.9			86.7
		Combined Ratio	97.1		%	93.2		%	89.3		%

RFIG Run-off:
		Net Premiums Earned	$	16.4		$	23.2		$	32.6
		Loss Ratio	(66.9)		%	(75.5)		%	(5.3)		%
		Expense Ratio	76.5			53.0			39.9
		Combined Ratio	9.6		%	(22.5)		%	34.6		%

All Coverages Consolidated:
		Net Premiums & Fees Earned	$	6,707.7		$	7,675.3		$	8,003.6
		Loss Ratio	38.7		%	31.8		%	30.2		%
		Expense Ratio	53.9			59.2			59.7
		Combined Ratio	92.6		%	91.0		%	89.9		%


Consolidated Investments
($ in Millions)
December 31:		2020		2019
Available for Sale
Fixed Maturity Securities:
	U.S. & Canadian Governments	$	2,063.2	$	1,878.8
	Tax-Exempt (a)	1,063.5		—
	Corporate	7,370.0		6,917.6
		10,496.8		8,796.5
Short-term Investments		749.6		484.3
	Total available for sale	11,246.4		9,280.9
Held to Maturity
Fixed Maturity Securities:
	Tax-Exempt (a)	—		1,021.7
Equity Securities		4,054.8		4,030.5
Other Investments		28.8		26.0
	Total Investments	$	15,330.1	$	14,359.2


Major General Insurance Balances Due from Reinsurers

			($ in Millions)						% of Total
		A.M.	Reinsurance Recoverable				Total		Consolidated
		Best	on Paid		on Claim		Exposure		Reinsured
Reinsurer		Rating	Claims		Reserves		to Reinsurer		Liabilities
	Archway Insurance, Ltd.	Unrated	$	—	$	387.1	$	387.1	10.5	%
	Day One Insurance, Inc.	Unrated	—		355.0		355.0		9.6
	Munich Re America, Inc.	A+	13.0		270.6		283.6		7.7
	Hanover Ruckversicherungs	A+	5.3		274.0		279.4		7.6
	AXIS Reinsurance Company	A	1.8		163.2		165.0		4.5
	Swiss Reinsurance America Corporation	A+	14.6		128.6		143.3		3.9
	Summit Insurance, Ltd.	Unrated	.9		137.5		138.5		3.7
	Endurance Assurance Corporation	A+	.8		111.8		112.6		3.0
	Partner Reinsurance Company of the U.S.	A+	.3		103.1		103.4		2.8
	Transatlantic Reinsurance Company	A+	2.1		98.7		100.9		2.7
			$	39.1	$	2,030.1	$	2,069.2	56.0	%


Title			Part
Proxy ~~statement~~Statement for the ~~2021~~2024 Annual Meeting of Shareholders Exhibits as specified in exhibit index (page ~~113)~~107)			III, Items 10, 11, 12, 13 and 14 IV, Item 15


Financial Information Relating to Segments of Business (a) ($ in Millions)

Revenues (b)
Years Ended December 31:	2020		2019		2018
General (e)	$	3,876.8	$	3,920.8	$	3,739.4
Title (f)	3,329.3		2,778.1		2,612.4
Corporate & Other - net (c)	41.4		48.5		46.3
Subtotal (f)	7,247.6		6,747.5		6,398.3
RFIG Run-off (e)	60.4		76.8		96.1
Subtotal (f)	7,308.0		6,824.4		6,494.4
Consolidated investment gains (losses) (b)	(142.0)		636.1		(235.6)
Consolidated (f)	$	7,166.0	$	7,460.5	$	6,258.8


Pretax Income (Loss)
Years Ended December 31:	2020		2019		2018
General (e)	$	439.8	$	370.2	$	363.9
Title	344.0		230.8		219.3
Corporate & Other - net (c)	36.7		54.8		40.4
Subtotal	820.5		655.9		623.8
RFIG Run-off (e)	9.8		30.3		49.9
Subtotal	830.4		686.2		673.7
Consolidated investment gains (losses)	(142.0)		636.1		(235.6)
Consolidated	$	688.4	$	1,322.4	$	438.1


Assets
As of December 31:	2020		2019		2018
General	$	19,226.1	$	17,870.0	$	16,411.4
Title	1,920.9		1,695.0		1,452.2
Corporate & Other - net (c)	1,085.1		896.0		726.7
Subtotal	22,232.2		20,461.1		18,590.3
RFIG Run-off	582.9		615.1		736.7
Consolidated	$	22,815.2	$	21,076.3	$	19,327.1


Shareholders' Equity (d)
As of December 31:	2020		2019		2018
General	$	3,832.2	$	3,635.1	$	3,024.6
Title	974.3		821.1		673.6
Corporate & Other - net (c)	934.2		1,061.3		1,001.2
Subtotal	5,740.7		5,517.6		4,699.5
RFIG Run-off	445.8		482.5		446.7
Consolidated	$	6,186.6	$	6,000.1	$	5,146.2


Financial Information Relating to Segments of Business ($ in Millions)

Revenues (a)
Years Ended December 31:	2023		2022		2021
General Insurance	$	4,744.3	$	4,315.6	$	4,042.5
Title Insurance	2,620.6		3,882.7		4,449.3
RFIG Run-off	22.7		30.0		44.1
Corporate & Other - net (b)	61.4		56.5		47.5
Subtotal	7,449.3		8,284.9		8,583.5
Consolidated investment gains (losses) (a)(c)	(190.9)		(201.1)		758.0
Consolidated	$	7,258.3	$	8,083.7	$	9,341.6


Pretax Income
Years Ended December 31:	2023		2022		2021
General Insurance	$	787.8	$	689.8	$	589.6
Title Insurance	133.5		308.8		515.7
RFIG Run-off	21.2		35.2		32.8
Corporate & Other - net (b)	(4.2)		24.6		25.7
Subtotal	938.4		1,058.6		1,164.0
Consolidated investment gains (losses) (c)	(190.9)		(201.1)		758.0
Consolidated	$	747.4	$	857.4	$	1,922.1


Assets
As of December 31:	2023		2022		2021
General Insurance	$	22,710.5	$	21,227.9	$	20,660.9
Title Insurance	1,948.2		2,077.6		2,234.2
RFIG Run-off (d)	232.8		344.2		516.4
Corporate & Other - net (b)	1,609.7		1,509.5		1,570.2
Consolidated	$	26,501.4	$	25,159.4	$	24,981.8


Republic Financial Indemnity Group (RFIG) Run-off ~~Business~~


				Effect of Prior Periods'
				(Favorable)/			Claim Ratio Excluding
	Reported			Unfavorable Claim			Prior Periods' Claim
	Claim Ratio			Reserves Development			Reserves Development
2016		73.0	%		0.3	%		72.7	%
2017		71.8			0.7			71.1
2018		72.2			—			72.2
2019		71.8			0.4			71.4
2020		69.9	%		(0.8)	%		70.7	%


Sources of Consolidated Investment Income
($ in Millions)
Years Ended December 31:		2020		2019		2018
Fixed Maturity Securities:
	Taxable Interest	$	269.9	$	280.0	$	278.4
	Tax-Exempt Interest	19.8		20.3		20.7
		289.8		300.3		299.2

Equity Securities Dividends		149.8		141.3		124.0

Other Investment Income:
	Interest on Short-term Investments	2.2		10.1		9.8
	Other Sources	3.5		5.8		4.9
		5.8		15.9		14.8
Gross Investment Income		445.6		457.7		438.1
	Less: Investment Expenses (a)	6.6		6.9		6.2
Net Investment Income		$	438.9	$	450.7	$	431.8


Geographical Distribution of Consolidated Direct Premiums Written

			2020		2019		2018
	United States:
		Northeast	12.3	%	12.2	%	11.9	%
		Mid-Atlantic	8.0		7.5		7.3
		Southeast	20.7		20.6		20.9
		Southwest	12.0		11.8		11.6
		East North Central	10.7		10.9		11.2
		West North Central	9.5		9.7		10.1
		Mountain	8.7		8.2		8.2
		Western	16.1		16.3		16.1
	Foreign (Principally Canada)		2.0		2.8		2.7
		Total	100.0	%	100.0	%	100.0	%


	Dec 15		Dec 16		Dec 17		Dec 18		Dec 19		Dec 20
ORI	$	100.00	$	106.21	$	124.13	$	130.15	$	153.25	$	141.53
S&P 500	100.00		111.96		136.40		130.42		171.49		203.04
Peer Group	100.00		112.86		125.93		107.33		137.21		127.18


	Major Segmented and Consolidated
	Elements of Income (Loss)
										2020		2019
Years Ended December 31:	2020			2019			2018			vs. 2019		vs. 2018
A. Net premiums, fees, and other income (d):
General insurance	$	3,394.2		$	3,432.4		$	3,277.1		(1.1)	%	4.7	%
Title insurance	3,286.3			2,736.0			2,573.1			20.1		6.3
Corporate and other	12.0			13.4			14.6			(10.0)		(8.8)
Other income	131.2			132.6			121.6			(1.0)		9.0
Subtotal	6,823.9			6,314.4			5,986.6			8.1		5.5
RFIG run-off business (c)	45.1			59.2			75.9			(23.8)		(22.0)
Consolidated	$	6,869.1		$	6,373.7		$	6,062.5		7.8	%	5.1	%

B. Underwriting and related services income (loss):
General insurance	$	151.8		$	84.9		$	91.2		78.8	%	(6.9)	%
Title insurance	305.8			193.4			185.1			58.0		4.6
Corporate and other	(17.0)			(15.5)			(21.9)			(9.5)		29.1
Subtotal	440.5			262.8			254.3			67.6		3.4
RFIG run-off business (c)	(5.3)			12.7			29.7			(142.3)		(57.3)
Consolidated	$	435.2		$	275.6		$	284.0		57.9	%	(3.0)	%
C. Consolidated underwriting ratio (d):
Claim ratio	37.0		%	41.2		%	41.4		%
Expense ratio	56.3			54.1			53.5
Combined ratio	93.3		%	95.3		%	94.9		%

D. Net investment income:
General insurance	$	352.2		$	356.4		$	341.0		(1.2)	%	4.5	%
Title insurance	42.0			41.4			38.8			1.3		6.6
Corporate and other	29.4			35.1			31.7			(16.2)		10.7
Subtotal	423.6			433.0			411.7			(2.2)		5.2
RFIG run-off business	15.2			17.6			20.1			(13.4)		(12.6)
Consolidated	$	438.9		$	450.7		$	431.8		(2.6)	%	4.4	%
E. Interest and other charges (credits):
General insurance	$	64.2		$	71.1		$	68.3
Title insurance	3.8			4.1			4.6
Corporate and other (a)	(24.3)			(35.2)			(30.6)
Subtotal	43.7			40.0			42.2
RFIG run-off business	—			—			—
Consolidated	$	43.7		$	40.0		$	42.2		9.1	%	(5.2)	%

F. Segmented and consolidated pretax
income (loss) excluding investment
gains (losses)(B+D-E):
General insurance	$	439.8		$	370.2		$	363.9		18.8	%	1.7	%
Title insurance	344.0			230.8			219.3			49.0		5.2
Corporate and other	36.7			54.8			40.4			(33.1)		35.5
Subtotal	820.5			655.9			623.8			25.1		5.2
RFIG run-off business (c)	9.8			30.3			49.9			(67.4)		(39.3)
Consolidated	830.4			686.2			673.7			21.0	%	1.9	%
Income taxes (credits) on above (b)	159.6			132.0			117.2
G. Net income (loss) excluding
investment gains (losses)	670.8			554.2			556.4			21.0	%	(0.4)	%
H. Consolidated pretax investment gains (losses):
Realized from actual transactions and impairments	14.2			36.6			58.2
Unrealized from changes in fair value of equity securities	(156.2)			599.5			(293.8)
Total	(142.0)			636.1			(235.6)
Income taxes (credits) on above	(29.8)			133.8			(49.6)
Net of tax investment gains (losses)	(112.1)			502.2			(185.9)
I. Net income (loss)	$	558.6		$	1,056.4		$	370.5
J. Consolidated operating cash flow	$	1,185.0		$	936.2		$	760.5


	Capitalization
	December 31,
	2020			2019			2018
Debt:
4.875% Senior Notes due 2024	$	397.9		$	397.3		$	396.8
3.875% Senior Notes due 2026	546.8			546.2			545.7
Other miscellaneous debt	21.7			30.4			38.8
Total debt	966.4			974.0			981.4
Common shareholders' equity	6,186.6			6,000.1			5,146.2
Total capitalization	$	7,153.1		$	6,974.2		$	6,127.6

Capitalization ratios:
Debt	13.5		%	14.0		%	16.0		%
Common shareholders' equity	86.5			86.0			84.0
Total	100.0		%	100.0		%	100.0		%


Commission File Number:			001-10607


~~Consolidated Underwriting Statistics~~


Gross Unrealized Losses Stratified by Industry Concentration for Non-Investment Grade Fixed Maturity Securities

December 31, 2020			Amortized Cost			Gross Unrealized Losses
Fixed Maturity Securities by Industry Concentration:
	Energy		$	29.0		$	1.4




		Total	$	29.0	(c)	$	1.4


Gross Unrealized Losses Stratified by Maturity Ranges for All Fixed Maturity Securities

		Amortized Cost of Fixed Maturity Securities				Gross Unrealized Losses
December 31, 2020		All		Non-Investment Grade Only		All		Non- Investment Grade Only
Maturity Ranges:
Due in one year or less		$	5.2	$	—	$	—	$	—
Due after one year through five years		407.2		16.1		.6		.4
Due after five years through ten years		285.9		12.8		2.8		1.0
Due after ten years		55.4		—		.3		—
	Total	$	753.8	$	29.0	$	3.8	$	1.4


Gross Unrealized Losses Stratified by Duration and Amount of Unrealized Losses for All Fixed Maturity Securities

			Amount of Gross Unrealized Losses
December 31, 2020			Less than 20% of Cost		20% to 50% of Cost		More than 50% of Cost		Total Gross Unrealized Loss
Number of Months in Unrealized Loss Position:

Fixed Maturity Securities:
	One to six months		$	2.3	$	—	$	—	$	2.3
	Seven to twelve months		1.4		—		—		1.4
	More than twelve months		—		—		—		—
		Total	$	3.8	$	—	$	—	$	3.8

Number of Issues in Unrealized Loss Position:

Fixed Maturity Securities:
	One to six months		68		—		—		68
	Seven to twelve months		6		—		—		6
	More than twelve months		3		—		—		3
		Total	77		—		—		77		(g)


	2021		2022 and 2023		2024 and 2025		2026 and After		Total
Contractual Obligations:
Debt	$	21.7	$	—	$	400.0	$	550.0	$	971.7
Interest on Debt	40.8		81.6		62.1		21.3		205.9
Operating Leases	61.3		97.8		61.2		96.4		316.8
Pension Benefits Contributions (a)	—		17.8		27.2		26.3		71.3
Claim & Claim Expense Reserves (b)	2,813.1		2,468.0		1,430.8		3,959.0		10,671.0
Total	$	2,937.1	$	2,665.2	$	1,981.4	$	4,653.1	$	12,236.9


	Earned Premiums and Fees
	General		Title (*)		RFIG Run-off		Other		Total (*)		% Change from prior period (*)
Years Ended December 31:
2018	$	3,277.1	$	2,573.1	$	75.9	$	14.6	$	5,940.9	3.0	%
2019	3,432.4		2,736.0		59.2		13.4		6,241.1		5.1
2020	$	3,394.2	$	3,286.3	$	45.1	$	12.0	$	6,737.8	8.0	%


	General Insurance Earned Premiums by Type of Coverage
	Commercial Automobile (mostly trucking)		Workers' Compensation		Financial Indemnity		Inland Marine and Property		General Liability		Other
Years Ended December 31:
2018	36.8	%	31.1	%	5.3	%	7.7	%	6.2	%	12.9	%
2019	37.2		29.1		6.4		7.6		6.6		13.1
2020	38.4	%	25.4	%	8.0	%	8.7	%	6.0	%	13.5	%


Title Premium and Fee Production by Source (*)
	Direct Operations		Independent Title Agents & Other
Years Ended December 31:
2018	23.7	%	76.3	%
2019	24.9		75.1
2020	24.9	%	75.1	%


			Persistency
Premium and Persistency Trends by Type:	Net Earned Premiums		Traditional Primary		Bulk
Years Ended December 31:
2018	$	74.4	79.7	%	76.3	%
2019	58.8		77.1		84.5
2020	$	45.1	77.1	%	84.1	%


Net Risk in Force
Net Risk in Force By Type:	Traditional Primary		Bulk		Other		Total
As of December 31:
2018	$	3,098.3	$	235.3	$	11.2	$	3,345.0
2019	2,388.3		198.2		3.6		2,590.1
2020	$	1,842.2	$	165.4	$	3.6	$	2,011.2


Analysis of Risk in Force
Risk in Force Distribution By FICO Scores:	FICO less than 620		FICO 620 to 680		FICO Greater than 680		Unscored/ Unavailable

Traditional Primary:
As of December 31:
2018	7.9	%	32.2	%	59.1	%	.8	%
2019	8.5		33.8		56.8		.9
2020	9.3	%	34.8	%	55.0	%	.9	%

Bulk(a):
As of December 31:
2018	33.6	%	31.5	%	34.8	%	.1	%
2019	34.4		31.2		34.2		.2
2020	35.4	%	31.7	%	32.7	%	.2	%


Risk in Force Distribution By Loan to Value ("LTV") Ratio:	LTV 85.0 and below		LTV 85.01 to 90.0		LTV 90.01 to 95.0		LTV Greater than 95.0

Traditional Primary(b):
As of December 31:
2018	4.1	%	30.7	%	29.7	%	35.5	%
2019	4.1		30.7		28.4		36.8
2020	4.0	%	31.2	%	27.9	%	36.9	%

Bulk(a):
As of December 31:
2018	43.4	%	30.9	%	13.1	%	12.6	%
2019	42.7		31.4		13.7		12.2
2020	42.7	%	32.0	%	13.6	%	11.7	%


	Traditional Primary
	TX		FL		GA		IL		CA		NJ		PA		NY		VA		MD
As of December 31:
2018	5.5	%	8.5	%	6.0	%	6.4	%	4.9	%	4.8	%	4.3	%	3.8	%	3.8	%	4.6	%
2019	4.8		9.0		6.1		6.9		5.1		5.2		4.2		3.9		3.9		5.1
2020	4.4	%	9.3	%	6.0	%	7.2	%	5.2	%	5.5	%	4.1	%	3.9	%	3.9	%	5.3	%


	Bulk (a)
	TX		FL		GA		IL		CA		MO		PA		NY		OH		MD
As of December 31:
2018	5.6	%	8.2	%	5.4	%	4.6	%	12.4	%	2.6	%	4.0	%	7.1	%	4.7	%	2.8	%
2019	5.5		8.1		5.6		4.7		12.7		2.8		3.8		7.1		4.9		3.0
2020	5.5	%	8.0	%	5.7	%	5.0	%	12.9	%	2.8	%	4.1	%	7.4	%	4.9	%	3.0	%


Risk in Force Distribution By Level of Documentation:	Full Documentation		Reduced Documentation
Traditional Primary:
As of December 31:
2018	92.2	%	7.8	%
2019	91.8		8.2
2020	91.4	%	8.6	%

Bulk (a):
As of December 31:
2018	71.8	%	28.2	%
2019	72.6		27.4
2020	72.8	%	27.2	%


Risk in Force Distribution By Loan Type:	Fixed Rate & ARMs with Resets >=5 Years		ARMs with Resets <5 years
Traditional Primary:
As of December 31:
2018	97.2	%	2.8	%
2019	97.1		2.9
2020	97.0	%	3.0	%

Bulk (a):
As of December 31:
2018	68.6	%	31.4	%
2019	68.0		32.0
2020	67.1	%	32.9	%


	Invested Assets at Cost										Fair Value Adjust- ment		Invested Assets as Reported (a)
	General		Title		RFIG Run-off		Corporate and Other		Total
As of December 31:
2019	$	10,577.9	$	1,172.3	$	566.3	$	841.7	$	13,158.4	$	1,200.7	$	14,359.2
2020	$	10,987.8	$	1,328.4	$	545.1	$	1,083.8	$	13,945.2	$	1,384.9	$	15,330.1


	Realized Investment Gains (Losses) from Actual Transactions						Impairment Losses on Securities						Unrealized Gains (Losses) from Changes in Fair Value of Equity Securities
	Fixed Maturity Securities		Equity Securities and Miscel- laneous Investments		Total		Fixed Maturity Securities		Miscel- laneous Investments		Total				Total Investment Gains (Losses)
Years Ended
December 31:
2018	$	(4.8)	$	63.1	$	58.2	$	—	$	—	$	—	$	(293.8)	$	(235.6)
2019	(1.9)		40.6		38.6		(2.0)		—		(2.0)		599.5		636.1
2020	$	(7.4)	$	21.6	$	14.2	$	—	$	—	$	—	$	(156.2)	$	(142.0)


			Claim and Loss Adjustment Expense Reserves
December 31:			2020						2019
			Gross			Net			Gross			Net
Workers' compensation			$	4,929.2		$	3,044.1		$	4,887.6		$	3,079.1
General liability			1,309.4			641.5			1,254.7			610.9
Commercial automobile (mostly trucking)			2,379.8			1,591.5			1,948.2			1,403.0
Other coverages			1,086.2			782.4			918.9			673.5
Unallocated loss adjustment expense reserves			269.1			268.3			256.6			254.6
		Total general insurance reserves	9,973.9			6,328.0			9,266.2			6,021.3
Title			556.1			556.1			530.9			530.9
RFIG Run-off			127.6			127.6			118.9			118.9
Life and accident			13.2			8.6			13.3			8.4
		Total claim and loss adjustment expense reserves	$	10,671.0		$	7,020.4		$	9,929.5		$	6,679.7
Asbestosis and environmental claim reserves included
	in the above general insurance reserves:
		Amount	$	127.6		$	82.4		$	126.8		$	83.3
		% of total general insurance reserves	1.3		%	1.3		%	1.4		%	1.4		%


Summary Operating Results
											% Change
											2023		2022
Years Ended December 31:		2023			2022			2021			vs. 2022		vs. 2021
Net premiums earned		$	4,119.2		$	3,808.6		$	3,555.5		8.2	%	7.1	%

Loss and loss adjustment expenses		2,553.3			2,364.6			2,303.1			8.0		2.7
Sales and general expenses		1,322.2			1,192.0			1,085.4			10.9		9.8
Segment pretax operating income		$	787.8		$	689.8		$	589.6		14.2	%	17.0	%

Loss ratio:
	Current year	67.7		%	67.2		%	68.6		%
	Prior years	(5.7)			(5.1)			(3.8)
	Total	62.0			62.1			64.8
Expense ratio		28.2			27.4			26.5
	Combined ratio	90.2		%	89.5		%	91.3		%


	General Insurance Net Earned Premiums by Type of Coverage
Years Ended December 31:	2023		2022		2021
Commercial auto	41.0	%	39.5	%	39.6	%
Workers' compensation	19.5		21.3		21.9
Property	11.5		9.8		9.7
Financial indemnity	8.4		10.3		9.7
Home and auto warranty	7.6		8.7		9.5
General liability	6.1		5.2		5.2
Other coverages	5.9	%	5.2	%	4.4	%