A HISTORY OF GROWTH AND STABILITY

Old Republic International Corporation

Old Republic traces its beginnings to 1923, although several acquired subsidiaries began operations much earlier. The Company is one of America's 50 largest shareholder-owned insurance businesses. Its subsidiaries market, underwrite, and provide risk management services for a wide variety of coverages, predominantly in the general (property and liability), mortgage guaranty, and title insurance fields. The Company is primarily a commercial lines underwriter serving the insurance needs of a large number of organizations, including many of America's leading industrial and financial services institutions.

For the beneficiaries of their insurance products and services, Old Republic's insurance subsidiaries provide quality assurance of the promises they make. For employees, the Company offers an environment of success in which they can pursue personal goals of professional and economic achievement in the context of Old Republic's business objectives.

Old Republic's record as a long-term investment compares very favorably within American industry. The Company's performance reflects an entrepreneurial spirit, a necessary long-term orientation in the management of its business, and a corporate structure that promotes accountability and encourages the taking of prudent business risks. The Company's common stock has a demonstrated history of long-term capital appreciation and a cash dividend payment record that now extends to 68 consecutive years. According to the most recent edition of Mergent's Dividend Achievers, Old Republic is one of just 119 companies, out of 10,000-plus publicly held corporations, that have posted at least 25 consecutive years of annual dividend growth.

 

 

Old Republic manages its business through more than 125 corporate entities, of which 23 are insurance subsidiaries covering all 50 states and Canada. Old Republic's companies market, underwrite, and provide risk management services for a multitude of coverages, predominantly in the general (property and liability), mortgage guaranty, and title insurance arenas. A small life and health insurance business is also conducted in the U.S. and Canada, principally as an adjunct to the Company's general insurance operations. The breadth of coverages ensures wide diversification and dispersion of risks. Additionally, Old Republic's companies focus only on carefully selected major sectors of the American economy that are not uniformly exposed to the same business cycles. The Company operates in a decentralized manner that emphasizes specialization by type of insurance coverage, as well as industries and economic sectors served.

Old Republic publishes an Annual Review that is widely distributed to agents, brokers, customers, employees, and others interested in the Company's business objectives and product offerings. The most current Annual Review is downloadable in the Investors section of this Website.

Old Republic's operating segments and the Corporation's most significant operating centers are described below.

This group of companies is one of the nation's 50 largest property and liability insurers as measured by revenues, as well as the largest of Old Republic's business segments. It offers a wide variety of property and liability insurance coverages and related services, predominantly to commercial and institutional customers. The majority of coverages are liability and financial indemnity insurance products. Old Republic does not have meaningful exposures to property types of coverages. About 83% of the General Insurance business is produced through independent agency and brokerage channels, while the remaining 17% is obtained via direct production facilities. 

 

The following chart reflects the Old Republic General Insurance Group's sources of premium volume distributed among the major sectors of the American economy it serves.

Old Republic's major operating companies are listed below together with their main areas of focus. The percentage included parenthetically after each operating company's name indicates its approximate contribution to the General Insurance Group's current gross premium volume. The letters shown parenthetically after each insurance company's name represent the most recent financial ratings awarded by independent agencies in the following order: A. M. Best, Fitch, Moody's, and Standard & Poor's. A dash (-) in the ordered space indicates that the agency in question either does not rate the particular Old Republic company, or that such company has not sought a rating.

The Bituminous Companies offer specialized risk transfer programs principally for the forest products, oil and gas, and construction industries. The largest coverages underwritten consist of workers' compensation, commercial automobile, general liability, and commercial multi-peril. Independent agents produce most of Bitco's business volume.

Chicago Underwriting Group is responsible for Old Republic's Directors and Officers and professional liability lines. Old Republic Insurance Company underwrites substantially all this business, which is generated largely through brokerage channels.

Great West specializes in the American trucking industry. Its largest coverages are commercial auto (trucking) liability and physical damage, cargo and inland marine, and workers' compensation insurance. The Company's long-term successful strategy emphasizes targeted growth through a specialized agency force. Great West operates in close harmony with Old Republic Insurance Company of Canada's truck insurance operation, as well as affiliates such as Old Republic Financial Acceptance Corporation (equipment finance) and Old Republic Life Insurance Company (occupational accident coverage for truckers).

Old Republic Construction Program Group focuses on specialized liability insurance coverages and services for trade contractors and large construction projects. This business, which became part of Old Republic in late 2006, is produced through a diverse broker network and underwritten by Old Republic General Insurance Corporation (A/A+/-/A+).

Old Republic Home Protection Company offers one-year home warranty contracts covering major operating systems and appliances in residential resale homes. The company provides policies on a direct basis.

ORINSCO, our flagship carrier domiciled in Greensburg, Pennsylvania, is the main policy-issuer for the various specialty operations identified herein. The company also serves as a regional middle-market standard coverage insurer for the metals, wood, stone, plastics and healthcare industries.

ORIAS specializes in automobile service contracts, mechanical breakdown insurance, and guaranteed asset protection (GAP) programs for new and used automobiles. Old Republic Insurance Company issues these policies and contracts, which are generated largely by independent agents.

ORICS protects lenders from defaults on a variety of consumer borrowings, including loans in the property improvement and equity lending portfolios of financial institutions. Its credit indemnity insurance programs have been successfully underwritten through Old Republic Insurance Company since 1954. Old Republic Equity Credit Services, Inc. (ORECS), an ORICS subsidiary, provides loan loss recovery and collection services on performing and non-performing real estate and other consumer loans.

ORRM focuses on large national accounts in the manufacturing and service sectors of the American economy. Its business is underwritten through individually tailored, loss-sensitive alternative market insurance programs that encourage assureds to retain a vested interest in their own risk exposures. ORRM's business is produced mostly through brokerage channels and uses Old Republic Insurance Company's risk-bearing capacity.

Old Republic Surety Company ranks among the nation's top underwriters of fidelity and surety bonds. Approximately 9,000 independent insurance agencies market these financial indemnity products.

Phoenix Aviation Managers, Old Republic's aviation insurance division, issues policies covering hull, liability, and workers' compensation exposures, largely for private and corporate aircraft and air travel facilities. Old Republic Insurance Company is the underwriter.

Established in 1915 and headquartered in Blue Bell, PA, PMA Companies provides a continuum of property and casualty risk solutions ranging from insurance products to risk management services for self-insured clients through its operating companies: PMA Insurance Group, specializing in workers' compensation and other property & casualty insurance products in select industries; PMA Management Corp. and PMA Management Corp. of New England, providing Third-Party Administration (TPA) of claims and risk services; and Midlands Management Corporation, offering program administration specializing in excess workers' compensation and specialty casualty claims services. PMA is committed to specialized underwriting, diligent claims management, and providing excellent service, in order to deliver tangible value for its clients.

 

This group of companies protects lenders from losses due to defaults on first mortgages for residential properties. Typically the group insures loans for the purchase or refinancing of homes when the amount borrowed exceeds 80% of the property's value. Republic Mortgage Insurance Company (RMIC) is the flagship carrier for this specialty line.

 

This group of companies provides title insurance policies and related real estate products and services for individuals, businesses, and government. More than 225 Old Republic-owned entities, as well as a large network of independent title insurance agents, market these offerings. Old Republic National Title Insurance Company, the U.S. flagship insurer has served the real estate and mortgage industry for more than a century, and is complemented by our oldest insurer, American Guaranty Title Insurance Company, dating back to 1889. Our regional insurer, Mississippi Valley Title Insurance Company, entered the business in 1941.

 

Old Republic conducts a small life and health insurance business in the U.S. through Old Republic Life Insurance Company and in Canada through Reliable Life Insurance Company. These operations focus on the transportation industry, offering credit life and disability insurance sold through automobile dealers, travel accident insurance marketed through travel agencies, and occupational accident insurance directed at trucking risks.

 

This chart shows Old Republic International's consolidated sources of premium volume attributable to major sectors of the American economy it serves.