XML 28 R17.htm IDEA: XBRL DOCUMENT v3.25.2
Information About Segments of Business
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
Information About Segments of Business Segment Information
The Company is engaged in the business of insurance underwriting and related services. It conducts its operations primarily through a number of regulated insurance company subsidiaries organized into two segments: Specialty Insurance and Title Insurance. The Company's reportable segments are strategic business units that offer different types of insurance that are managed separately because the nature of each varies from a customer, distribution, and economic perspective. The results of the RFIG Run-off business, previously a reportable segment, are deemed immaterial and reflected within the Corporate & Other caption of this report through the effective date of its sale of May 31, 2024, along with the results of a small life and accident insurance business.

The Company does not derive over 10% of its consolidated revenues from any one customer. Revenues and assets connected with foreign operations are not significant in relation to consolidated totals.

Specialty Insurance provides property and liability insurance primarily to commercial clients. Old Republic does not have a significant exposure in personal insurance coverages. Commercial auto is the largest type of coverage underwritten by Specialty Insurance, accounting for 41.7% and 41.8% of the segment's net premiums earned in the second quarter and first six months of 2025, respectively. The remaining premiums written by Specialty Insurance are derived largely from a wide variety of coverages, including workers' compensation, property, general liability, general aviation, directors' and officers' indemnity, fidelity and surety indemnities, and home and auto warranties.

Title Insurance consists primarily of the issuance of policies to real estate purchasers and investors based upon searches of the public records which contain information concerning interests in real property. The policies insure against losses arising out of defects, liens, and encumbrances affecting the insured title and not excluded or excepted from the coverage of the policy.

The accounting policies of the Specialty Insurance and Title Insurance segments are the same as those described in the summary of significant accounting policies in Note 1 in the Notes to Consolidated Financial Statements included in Old Republic's 2024 Annual Report on Form 10-K. Inter-segment income and expense, if any, is eliminated. Income taxes are calculated on the basis of the taxable income of the individual entities within each segment.

Old Republic's business is managed for the long run. In this context, management's key objectives are to achieve highly profitable operating results over the long term, and to ensure balance sheet strength for the insurance
underwriting subsidiaries' obligations. Although GAAP uses net income as the measure of total profitability, management uses net income excluding net investment gains (losses) (net operating income), a non-GAAP financial measure, in its evaluation of periodic and long-term results.

In management's opinion, excluding investment gains (losses) from income provides a better way to analyze, evaluate, and establish accountability for the results of the insurance operations. The inclusion of realized investment gains (losses) in net income can mask trends in operating results because such realizations are often highly discretionary. Similarly, the inclusion of unrealized investment gains (losses) in equity securities can further distort such operating results with significant period-to-period fluctuations that are unrelated to the insurance operations. Net operating income, however, does not replace GAAP net income as a measure of total profitability. Furthermore, as described in more detail below, management considers the underwriting income component of segment operating income (alternatively measured via combined ratio results) to be the primary performance measure of the insurance operations within each segment.

The Company's chief operating decision maker (CODM) is its Chief Executive Officer. The CODM assesses performance for the Specialty Insurance and Title Insurance segments based primarily on underwriting results, as measured by each segment's combined ratio. The combined ratio measures the Company's overall profitability from its underwriting activities and is derived by dividing loss and loss adjustment expenses, dividends to policyholders, and underwriting, acquisition, and other expenses by total premiums and fees earned in the tables that follow.

The combined ratio is utilized to perform benchmarking analysis with respect to the Company’s internally set objectives as well as its peer group and competitors. The CODM considers these analyses to determine whether to deploy more capital to fund growth within the segments, or conversely, deploy less capital to focus on underwriting profitability improvements. Furthermore, the combined ratio is a significant component in the establishment of management’s incentive compensation.

The contributions of Old Republic's reportable segments to consolidated totals are shown in the following tables.
Quarter Ended June 30, 2025:Specialty Insurance
Title Insurance
Corporate & Other
Consolidation Elimination Adjustments (a)
Total
Revenues:
Net premiums written
$1,361.0 $629.8 $2.8 $— $1,993.8 
Net premiums earned
1,294.5 629.8 2.3 — 1,926.7 
Title, escrow, and other fees
— 67.9 — — 67.9 
Total premiums and fees
1,294.5 697.8 2.3 — 1,994.6 
Other income
49.3 0.1 — — 49.6 
Expenses (b):
Loss and loss adjustment expenses
805.5 20.3 0.7 — 826.5 
Dividends to policyholders
4.1 — — — 4.1 
Underwriting, acquisition, and other expenses:
Commissions
148.4 429.0 0.4 — 577.9 
Insurance taxes, licenses, and fees
50.1 9.6 (0.3)— 59.4 
Subtotal
198.5 438.6 — — 637.3 
General expenses
215.6 232.0 14.9 — 462.6 
Total underwriting, acquisition, and
other expenses
414.2 670.7 15.0 — 1,099.9 
Segment underwriting income (loss)
119.9 6.9 (13.3)— 113.6 
Add: Net investment income
149.9 17.3 20.3 (16.1)171.5 
Less: Interest and other charges
16.1 — 17.6 (16.1)17.6 
Segment pretax operating income (loss)
253.7 24.2 (10.5)— 267.5 
Income taxes (credits) on above
51.6 5.0 (2.3)— 54.3 
Net income (loss) excluding investment gains
(losses)
$202.1 $19.2 $(8.2)$— 213.2 
Consolidated pretax investment gains (losses):
Realized from actual transactions and
impairments
(2.4)
Unrealized from changes in fair value of
equity securities
(4.9)
Income taxes (credits) on above
(2.6)
Net of tax investment gains (losses)
(4.7)
Total net income
208.4 
Net income attributable to noncontrolling interests
3.9 
Net income to shareholders
$204.4 
Segment and consolidated combined ratio
90.7 %99.0 %93.6 %
__________

(a)    Includes intercompany financing arrangements for which interest charges were $16.1 for the quarter ended June 30, 2025.
(b)    The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. There are no other segment expenses that are part of reported segment profit or loss amounts that are not included in one of the above categories.
Quarter Ended June 30, 2024:Specialty Insurance
Title Insurance
Corporate & Other
Consolidation Elimination Adjustments (a)
Total
Revenues:
Net premiums written
$1,247.2 $591.9 $4.3 $— $1,843.5 
Net premiums earned
1,129.6 591.9 4.3 — 1,725.9 
Title, escrow, and other fees
— 71.5 — — 71.5 
Total premiums and fees
1,129.6 663.4 4.3 — 1,797.4 
Other income
47.0 0.3 — — 47.3 
Expenses (b):
Loss and loss adjustment expenses
716.5 15.3 (0.3)— 731.5 
Dividends to policyholders
10.0 — — — 10.0 
Underwriting, acquisition, and other expenses:
Commissions
130.2 398.0 — — 528.3 
Insurance taxes, licenses, and fees
43.8 9.1 (0.1)— 52.9 
Subtotal
174.1 407.1 — — 581.2 
General expenses
190.8 211.0 11.3 — 413.3 
Total underwriting, acquisition, and
other expenses
364.9 618.2 11.3 — 994.5 
Segment underwriting income (loss)
85.1 30.2 (6.6)— 108.6 
Add: Net investment income
132.9 15.5 34.7 (15.6)167.4 
Less: Interest and other charges
15.4 (0.3)22.7 (15.6)22.2 
Segment pretax operating income (loss)
202.5 46.0 5.2 — 253.8 
Income taxes (credits) on above
41.6 9.4 0.2 — 51.3 
Net income (loss) excluding investment gains
(losses)$160.9 $36.5 $4.9 $— 202.4 
Consolidated pretax investment gains (losses):
Realized from actual transactions and
impairments
(54.1)
Unrealized from changes in fair value of
equity securities
(86.3)
Income taxes (credits) on above
(29.9)
Net of tax investment gains (losses)
(110.6)
Total net income
91.8 
Net income attributable to noncontrolling interests
— 
Net income to shareholders
$91.8 
Segment and consolidated combined ratio
92.4 %95.4 %93.5 %
__________

(a)    Includes intercompany financing arrangements for which interest charges were $15.6 for the quarter ended June 30, 2024.
(b)    The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. There are no other segment expenses that are part of reported segment profit or loss amounts that are not included in one of the above categories.
Six Months Ended June 30, 2025:Specialty Insurance
Title Insurance
Corporate & Other
Consolidation Elimination Adjustments (a)
Total
Revenues:
Net premiums written
$2,633.1 $1,176.8 $6.2 $— $3,816.2 
Net premiums earned
2,528.1 1,176.8 4.6 — 3,709.6 
Title, escrow, and other fees
— 126.1 — — 126.1 
Total premiums and fees
2,528.1 1,302.9 4.6 — 3,835.7 
Other income
96.4 0.3 — — 96.8 
Expenses (b):
Loss and loss adjustment expenses
1,561.0 36.3 1.2 — 1,598.6 
Dividends to policyholders
9.7 — — — 9.7 
Underwriting, acquisition, and other expenses:
Commissions
288.0 805.5 0.2 — 1,093.8 
Insurance taxes, licenses, and fees
92.8 18.6 1.6 — 113.1 
Subtotal
380.8 824.1 1.8 — 1,206.9 
General expenses
426.8 448.0 28.9 — 903.8 
Total underwriting, acquisition, and
other expenses
807.7 1,272.1 30.8 — 2,110.7 
Segment underwriting income (loss)
246.1 (5.2)(27.4)— 213.4 
Add: Net investment income
299.9 34.0 40.2 (32.0)342.2 
Less: Interest and other charges
32.1 0.1 35.2 (32.0)35.5 
Segment pretax operating income (loss)
513.9 28.6 (22.3)— 520.2 
Income taxes (credits) on above
104.7 6.0 (6.5)— 104.1 
Net income excluding investment gains
(losses)
$409.2 $22.6 $(15.8)$— 416.0 
Consolidated pretax investment gains (losses):
Realized from actual transactions and
impairments
34.9 
Unrealized from changes in fair value of
equity securities
12.7 
Income taxes (credits) on above
9.1 
Net of tax investment gains (losses)
38.5 
Total net income
454.5 
Net income attributable to noncontrolling interests
5.0 
Net income to shareholders
$449.5 
Segment and consolidated combined ratio
90.2 %100.4 %93.7 %
__________

(a)    Includes intercompany financing arrangements for which interest charges were $32.0 for the six months ended June 30, 2025.
(b)    The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. There are no other segment expenses that are part of reported segment profit or loss amounts that are not included in one of the above categories.
Six Months Ended June 30, 2024:Specialty Insurance
Title Insurance
Corporate & Other
Consolidation Elimination Adjustments (a)
Total
Revenues:
Net premiums written
$2,404.4 $1,069.3 $9.8 $— $3,483.6 
Net premiums earned
2,221.3 1,069.3 9.9 — 3,300.5 
Title, escrow, and other fees
— 139.5 — — 139.5 
Total premiums and fees
2,221.3 1,208.8 9.9 — 3,440.1 
Other income
88.8 0.4 — — 89.2 
Expenses (b):
Loss and loss adjustment expenses
1,398.0 27.4 0.6 — 1,426.1 
Dividends to policyholders
12.8 — — — 12.8 
Underwriting, acquisition, and other expenses:
Commissions
244.7 730.9 — — 975.8 
Insurance taxes, licenses, and fees
81.6 17.0 1.0 — 99.7 
Subtotal
326.4 747.9 1.1 — 1,075.5 
General expenses
381.9 417.2 23.1 — 822.2 
Total underwriting, acquisition, and
other expenses
708.3 1,165.1 24.3 — 1,897.8 
Segment underwriting income (loss)
190.9 16.7 (15.1)— 192.5 
Add: Net investment income
264.0 31.2 68.7 (32.3)331.6 
Less: Interest and other charges
31.9 (0.4)39.5 (32.3)38.7 
Segment pretax operating income (loss)
422.9 48.4 14.0 — 485.4 
Income taxes (credits) on above
86.5 9.9 1.7 — 98.2 
Net income excluding investment gains
(losses)
$336.4 $38.4 $12.3 $— 387.2 
Consolidated pretax investment gains (losses):
Realized from actual transactions and
impairments
126.2 
Unrealized from changes in fair value of
equity securities
(99.6)
Income taxes (credits) on above
5.2 
Net of tax investment gains (losses)
21.4 
Total net income
408.6 
Net income attributable to noncontrolling interests
— 
Net income to shareholders
$408.6 
Segment and consolidated combined ratio
91.4 %98.6 %93.8 %
__________

(a)    Includes intercompany financing arrangements for which interest charges were $32.3 for the six months ended June 30, 2024.
(b)    The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. There are no other segment expenses that are part of reported segment profit or loss amounts that are not included in one of the above categories.
June 30,December 31,
20252024
Consolidated Assets:
Specialty Insurance
$26,322.6 $24,563.2 
Title Insurance1,905.1 1,915.8 
Total assets of Company segments
28,227.8 26,479.1 
Corporate & Other (a)
1,196.4 1,532.4 
Consolidation elimination adjustments (b)
(168.5)(168.4)
Consolidated assets$29,255.7 $27,843.1 
__________

(a) Includes a small life and accident insurance business, the parent holding company, and several internal corporate services subsidiaries.
(b) Includes predominately intercompany debt and various reclassifications.