OLD REPUBLIC INTERNATIONAL CORPORATION | ||||
(Exact name of registrant as specified in its charter) |
Delaware | 001-10607 | 36-2678171 | ||
(State or other jurisdiction | (Commission | (I.R.S. Employer | ||
of incorporation) | File Number) | Identification No.) |
307 North Michigan Avenue, Chicago, Illinois 60601 | ||
(Address of principal executive offices) (Zip Code) | ||
(312) 346-8100 | ||
(Registrant’s telephone number, including area code) | ||
N /A | ||
(Former name or former address, if changed since last report) |
OLD REPUBLIC INTERNATIONAL CORPORATION | ||
Registrant | ||
Date: April 27, 2018 | By: /s/ Karl W. Mueller | |
Karl W. Mueller | ||
Senior Vice President, | ||
Chief Financial Officer, and | ||
Chief Accounting Officer |
NEWS RELEASE | |
Further Information Contacts: | |
AT OLD REPUBLIC: | AT FINANCIAL RELATIONS BOARD: |
A. C. Zucaro: Chairman & CEO | Analysts/Investors: Marilynn Meek |
(312) 346-8100 | (212) 827-3773 |
OLD REPUBLIC REPORTS RESULTS FOR THE FIRST QUARTER 2018 | |
Financial Highlights (a) | ||||||||||||||||||||||
Quarters Ended March 31, | ||||||||||||||||||||||
2018 | 2017 | Change | ||||||||||||||||||||
Operating revenues: | ||||||||||||||||||||||
General insurance | $ | 904.8 | $ | 849.0 | 6.6 | % | ||||||||||||||||
Title insurance | 523.6 | 527.8 | -0.8 | |||||||||||||||||||
Corporate and other | 11.6 | 11.9 | -2.2 | |||||||||||||||||||
Subtotal | 1,440.1 | 1,388.8 | 3.7 | |||||||||||||||||||
RFIG run-off business | 26.7 | 41.1 | -35.0 | |||||||||||||||||||
Total | $ | 1,466.8 | $ | 1,429.9 | 2.6 | % | ||||||||||||||||
Pretax operating income (loss): | ||||||||||||||||||||||
General insurance | $ | 83.3 | $ | 93.7 | -11.1 | % | ||||||||||||||||
Title insurance | 29.5 | 40.4 | -27.0 | |||||||||||||||||||
Corporate and other | 6.5 | 1.1 | N/M | |||||||||||||||||||
Subtotal | 119.4 | 135.3 | -11.8 | |||||||||||||||||||
RFIG run-off business | 10.9 | 14.5 | -24.2 | |||||||||||||||||||
Total | 130.4 | 149.8 | (13.0 | ) | ||||||||||||||||||
Pretax investment gains (losses): | ||||||||||||||||||||||
Realized from actual sale transactions | 15.5 | 14.8 | 4.7 | |||||||||||||||||||
Unrealized from changes in fair value of equity securities | (152.0) | - | N/A | |||||||||||||||||||
Total realized and unrealized investment gains (losses) | (136.4) | 14.8 | N/M | |||||||||||||||||||
Consolidated pretax income (loss) | (6.0) | 164.7 | -103.7 | |||||||||||||||||||
Income taxes (credits) | (10.1) | 51.6 | -119.7 | |||||||||||||||||||
Net income (loss) | $ | 4.0 | $ | 113.1 | -96.4 | % | ||||||||||||||||
Components of post-tax diluted earnings per share: | ||||||||||||||||||||||
Net operating income (loss): | ||||||||||||||||||||||
General insurance | $ | 0.26 | $ | 0.22 | 18.2 | % | ||||||||||||||||
Title insurance | 0.08 | 0.09 | -11.1 | |||||||||||||||||||
Corporate and other | 0.03 | 0.02 | 50.0 | |||||||||||||||||||
Subtotal | 0.37 | 0.33 | 12.1 | |||||||||||||||||||
RFIG run-off business | 0.03 | 0.03 | - | |||||||||||||||||||
Net operating income (loss) | 0.40 | 0.36 | 11.1 | |||||||||||||||||||
Net realized investment gains (losses) from actual sale transactions | 0.04 | 0.03 | 33.3 | |||||||||||||||||||
Subtotal | 0.44 | 0.39 | 12.8 | |||||||||||||||||||
Net unrealized investment gains (losses) from changes in fair value of equity securities | (0.43) | - | N/A | |||||||||||||||||||
Net income (loss) | $ | 0.01 | $ | 0.39 | -97.4 | % | ||||||||||||||||
Cash dividends declared per share | $ | 0.1950 | $ | 0.1900 | 2.6 | % | ||||||||||||||||
Ending book value per share | $ | 16.82 | $ | 17.58 | -4.3 | % | ||||||||||||||||
(a) Unaudited / All amounts in this report are stated in millions except per share data and percentages. N/M = Not meaningful / N/A = Not applicable |
Quarters Ended March 31, | ||||||||
2018 | 2017 | Change | ||||||
Pretax operating income | $ | 130.4 | $ | 149.8 | -13.0 | % | ||
Income tax expense (effective rates 14.3% and 31.0%)(a) | 18.5 | 46.4 | -59.9 | |||||
Net operating income | 111.8 | 103.4 | 8.1 | |||||
Realized investment gains (losses) from actual sale transactions | 15.5 | 14.8 | 4.7 | |||||
Income tax expense (effective rates 21.0% and 35.0%)(a) | 3.2 | 5.1 | -37.2 | |||||
Net realized investment gains (losses) | 12.2 | 9.6 | 27.3 | |||||
Combined pretax operating income and realized investment gains (losses) | 145.9 | 164.7 | -11.4 | |||||
Income tax expense (effective rates 15.0% and 31.3%)(a) | 21.8 | 51.6 | -57.6 | |||||
Combined net operating income and realized investment gains (losses) | 124.0 | 113.1 | 9.7 | % | ||||
Unrealized gains (losses) from changes in fair value of equity securities | (152.0) | 47.9 | (b) | |||||
Income tax expense (effective rates 21.0% and 35.0%)(a) | (32.0) | 16.7 | (b) | |||||
Net unrealized gains (losses) | (120.0) | 31.2 | (b) | |||||
Consolidated pretax income (loss) | (6.0) | 212.7 | (b) | |||||
Income tax expense (effective rates N/M and 32.1%)(a) | (10.1) | 68.3 | (b) | |||||
Net income (loss) | $ | 4.0 | $ | 144.3 | (b) | |||
General Insurance Results – The table below shows the major elements affecting this segment’s performance for the periods reported upon. |
General Insurance Group | ||||||||||||||||||
Quarters Ended March 31, | ||||||||||||||||||
2018 | 2017 | Change | ||||||||||||||||
Net premiums earned | $ | 791.2 | $ | 742.8 | 6.5 | % | ||||||||||||
Net investment income | 83.2 | 78.8 | 5.5 | |||||||||||||||
Other income | 30.3 | 27.3 | 11.0 | |||||||||||||||
Operating revenues | 904.8 | 849.0 | 6.6 | |||||||||||||||
Claim costs | 566.1 | 527.6 | 7.3 | |||||||||||||||
Sales and general expenses | 238.3 | 211.9 | 12.5 | |||||||||||||||
Interest and other costs | 17.0 | 15.6 | 8.7 | |||||||||||||||
Total operating expenses | 821.4 | 755.3 | 8.8 | |||||||||||||||
Pretax operating income (loss)(a) | $ | 83.3 | $ | 93.7 | -11.1 | % | ||||||||||||
Claim ratio | 71.5 | % | 71.0 | % | ||||||||||||||
Expense ratio | 26.3 | 24.9 | ||||||||||||||||
Composite underwriting ratio | 97.8 | % | 95.9 | % | ||||||||||||||
(a) | In connection with the run-off mortgage guaranty ("MI") and consumer credit indemnity ("CCI") combination, $0.4 and $(4.5) of pretax operating gains (losses) for the first quarter 2018 and 2017, respectively, were retained by certain general insurance companies pursuant to various quota share and stop loss reinsurance agreements. All of these amounts, however, have been reclassified such that 100% of the CCI run-off business is reported in the RFIG run-off segment. |
Reported Claim Ratio | Effect of Prior Years’ (Favorable)/Unfavorable Claim Reserves Development | Claim Ratio Excluding Prior Years' Claim Reserves Development | ||||||
2013 | 73.6 | % | (0.9 | )% | 74.5 | % | ||
2014 | 77.9 | 3.9 | 74.0 | |||||
2015 | 74.1 | 1.5 | 72.6 | |||||
2016 | 73.0 | 0.3 | 72.7 | |||||
2017 | 71.8 | % | 0.7 | % | 71.1 | % | ||
1st Quarter 2017 | 71.0 | % | 1.4 | % | 69.6 | % | ||
1st Quarter 2018 | 71.5 | % | 2.0 | % | 69.5 | % |
Title Insurance Results – First quarter 2018 operating results were mostly affected by basically flat revenues, and higher claim costs and general expenses. |
Title Insurance Group | ||||||||||||||||||||
Quarters Ended March 31, | ||||||||||||||||||||
2018 | 2017 | Change | ||||||||||||||||||
Net premiums and fees earned | $ | 513.8 | $ | 518.0 | -0.8 | % | ||||||||||||||
Net investment income | 9.4 | 9.5 | -0.4 | |||||||||||||||||
Other income | 0.2 | 0.2 | 1.9 | |||||||||||||||||
Operating revenues | 523.6 | 527.8 | -0.8 | |||||||||||||||||
Claim costs | 12.9 | 11.0 | 17.4 | |||||||||||||||||
Sales and general expenses | 479.8 | 474.0 | 1.2 | |||||||||||||||||
Interest and other costs | 1.2 | 2.2 | -41.8 | |||||||||||||||||
Total operating expenses | 494.0 | 487.3 | 1.4 | |||||||||||||||||
Pretax operating income (loss) | $ | 29.5 | $ | 40.4 | -27.0 | % | ||||||||||||||
Claim ratio | 2.5 | % | 2.1 | % | ||||||||||||||||
Expense ratio | 93.3 | 91.5 | ||||||||||||||||||
Composite underwriting ratio | 95.8 | % | 93.6 | % |
Reported Claim Ratio | Effect of Prior Years’ (Favorable)/Unfavorable Claim Reserves Development | Claim Ratio Excluding Prior Years' Claim Reserves Development | ||||||
2013 | 6.7 | % | (0.2 | )% | 6.9 | % | ||
2014 | 5.2 | (0.8 | ) | 6.0 | ||||
2015 | 4.9 | (0.6 | ) | 5.5 | ||||
2016 | 3.8 | (1.1 | ) | 4.9 | ||||
2017 | 0.9 | % | (3.3 | ) | 4.2 | % | ||
1st Quarter 2017 | 2.1 | % | (2.0 | )% | 4.1 | % | ||
1st Quarter 2018 | 2.5 | % | (1.6 | )% | 4.1 | % |
RFIG Run-off Business Results – First quarter results were largely effected by the continuing decline of risk in force and concomitant drop in earned premiums. |
RFIG Run-off Business | ||||||||||||||||||
Quarters Ended March 31, | ||||||||||||||||||
2018 | 2017 | Change | ||||||||||||||||
A. Mortgage Insurance (MI) | ||||||||||||||||||
Net premiums earned | $ | 20.9 | $ | 31.3 | -33.1 | % | ||||||||||||
Net investment income | 5.1 | 5.2 | -2.1 | |||||||||||||||
Claim costs | 11.4 | 10.9 | 4.8 | |||||||||||||||
Pretax operating income (loss)(a) | $ | 10.7 | $ | 19.3 | -44.4 | % | ||||||||||||
Claim ratio | 54.8 | % | 35.0 | % | ||||||||||||||
Expense ratio | 18.3 | 19.9 | ||||||||||||||||
Composite underwriting ratio | 73.1 | % | 54.9 | % | ||||||||||||||
B. Consumer Credit Indemnity (CCI) | ||||||||||||||||||
Net premiums earned | $ | 0.4 | $ | 4.2 | -90.2 | % | ||||||||||||
Net investment income | 0.2 | 0.3 | -32.4 | |||||||||||||||
Claim costs | - | 8.8 | -100.1 | |||||||||||||||
Pretax operating income (loss)(a) | $ | 0.2 | $ | (4.8) | 104.1 | % | ||||||||||||
Claim ratio | -3.0 | % | 209.2 | % | ||||||||||||||
Expense ratio | 107.4 | 13.9 | ||||||||||||||||
Composite underwriting ratio | 104.4 | % | 223.1 | % | ||||||||||||||
C. Total MI and CCI run-off business: | ||||||||||||||||||
Net premiums earned | $ | 21.3 | $ | 35.5 | -39.9 | % | ||||||||||||
Net investment income | 5.3 | 5.5 | -3.9 | |||||||||||||||
Claim costs | 11.4 | 19.8 | -42.1 | |||||||||||||||
Pretax operating income (loss)(a) | $ | 10.9 | $ | 14.5 | -24.2 | % | ||||||||||||
Claim ratio | 53.7 | % | 55.7 | % | ||||||||||||||
Expense ratio | 20.0 | 19.2 | ||||||||||||||||
Composite underwriting ratio | 73.7 | % | 74.9 | % | ||||||||||||||
(a) | In connection with the run-off mortgage guaranty ("MI") and consumer credit indemnity ("CCI") combination, $0.4 and $(4.5) of pretax operating gains (losses) for the first quarter 2018 and 2017, respectively, were retained by certain general insurance companies pursuant to various quota share and stop loss reinsurance agreements. All of these amounts, however, have been reclassified such that 100% of the CCI run-off business is reported in the RFIG run-off segment. |
Corporate and Other Operations – The combination of a small life and accident insurance business and the net costs associated with operations of the parent holding company and its internal services subsidiaries usually produce highly variable results. Earnings variations posted by these elements of Old Republic's business stem from volatility inherent to the small scale of the life and accident insurance line, net investment income, and net interest charges pertaining to external and intra-system financing arrangements. The interplay of these various operating elements is summarized in the following table: |
Corporate and Other Operations | |||||||||||
Quarters Ended March 31, | |||||||||||
2018 | 2017 | ||||||||||
Net premiums earned | $ | 3.9 | $ | 4.6 | |||||||
Net investment income | 7.7 | 7.2 | |||||||||
Other income | - | - | |||||||||
Operating revenues | 11.6 | 11.9 | |||||||||
Claim costs | 3.4 | 5.0 | |||||||||
Insurance expenses | 1.3 | 3.8 | |||||||||
Corporate, interest and other expenses - net | 0.3 | 1.8 | |||||||||
Total operating expenses | 5.1 | 10.8 | |||||||||
Pretax operating income (loss) | $ | 6.5 | $ | 1.1 |
Consolidated Results – The above summarized operating results of Old Republic’s segmented business are reflected in the following consolidation of accounts. |
ORI Consolidated | ||||||||||||||||||
Quarters Ended March 31, | ||||||||||||||||||
2018 | 2017 | Change | ||||||||||||||||
Net premiums and fees earned | $ | 1,330.4 | $ | 1,301.0 | 2.3 | % | ||||||||||||
Net investment income | 105.8 | 101.2 | 4.5 | |||||||||||||||
Other income | 30.6 | 27.6 | 10.8 | |||||||||||||||
Operating revenues | 1,466.8 | 1,429.9 | 2.6 | |||||||||||||||
Claim costs | 594.0 | 563.4 | 5.4 | |||||||||||||||
Sales and general expenses | 728.0 | 700.2 | 4.0 | |||||||||||||||
Interest and other costs | 14.4 | 16.4 | -12.3 | |||||||||||||||
Total operating expenses | 1,336.4 | 1,280.1 | 4.4 | |||||||||||||||
Pretax operating income (loss) | 130.4 | 149.8 | -13.0 | |||||||||||||||
Income taxes (credits) | 18.5 | 46.4 | -59.9 | |||||||||||||||
Net operating income (loss) | 111.8 | 103.4 | 8.1 | |||||||||||||||
Realized investment gains (losses) from actual sale transactions | 15.5 | 14.8 | 4.7 | |||||||||||||||
Income tax expense (credits) | 3.2 | 5.1 | -37.2 | |||||||||||||||
Net realized investment gains (losses) | 12.2 | 9.6 | 27.3 | |||||||||||||||
Unrealized investment gains (losses) from changes in fair value of equity securities | (152.0) | - | N/A | |||||||||||||||
Income tax expense (credits) | (32.0) | - | N/A | |||||||||||||||
Net unrealized investment gains (losses) | (120.0) | - | N/A | |||||||||||||||
Net realized and unrealized investment gains (losses) | (107.7) | 9.6 | N/M | |||||||||||||||
Net income (loss) | $ | 4.0 | $ | 113.1 | -96.4 | % |
Claim ratio | 44.6 | % | 43.3 | % | ||||||||||||||
Expense ratio | 52.1 | 51.4 | ||||||||||||||||
Composite underwriting ratio | 96.7 | % | 94.7 | % | ||||||||||||||
Consolidated operating cash flow | $ | 130.8 | $ | 146.1 | -10.5 | % |
Quarters Ended March 31, | ||||||||||||||||||
Pretax operating income: | 2018 | 2017 | Change | |||||||||||||||
Underwriting and related services: | ||||||||||||||||||
All segments except RFIG | $ | 33.3 | $ | 56.0 | -40.6 | % | ||||||||||||
RFIG run-off | 5.6 | 8.9 | -37.0 | |||||||||||||||
Subtotal | 38.9 | 65.0 | -40.1 | |||||||||||||||
Net investment income | 105.8 | 101.2 | 4.5 | |||||||||||||||
Interest and other costs | (14.4 | ) | (16.4 | ) | -12.3 | |||||||||||||
Total | 130.4 | 149.8 | -13.0 | |||||||||||||||
Realized investment gains (losses) from actual sale transactions | 15.5 | 14.8 | 4.7 | |||||||||||||||
Unrealized investment gains (losses) from changes in fair value of equity securities | (152.0) | - | N/A | |||||||||||||||
Consolidated pretax income (loss) | $ | (6.0) | $ | 164.7 | -103.7 | % |
Cash, Invested Assets, and Shareholders' Equity – The table below shows Old Republic's consolidated cash and invested assets as well as the shareholders' equity balance at the dates shown. |
Cash, Invested Assets, and Shareholders' Equity | ||||||||||||||||||
% Change | ||||||||||||||||||
March 31, | December 31, | March 31, | March '18/ | March '18/ | ||||||||||||||
2018 | 2017 | 2017 | Dec. '17 | March '17 | ||||||||||||||
Cash and invested assets: | ||||||||||||||||||
Invested assets, carried at fair value | $ | 11,964.1 | $ | 12,468.9 | $ | 12,110.6 | -4.0 | % | -1.2 | % | ||||||||
Held to maturity, carried at amortized cost | 1,061.8 | 1,067.4 | 1,056.9 | -0.5 | % | 0.5 | % | |||||||||||
Total per balance sheet | $ | 13,026.0 | $ | 13,536.4 | $ | 13,167.5 | -3.8 | % | -1.1 | % | ||||||||
Total at original cost for all | $ | 12,574.2 | $ | 12,783.4 | $ | 12,466.8 | -1.6 | % | 0.9 | % | ||||||||
Shareholders' equity: | Total | $ | 5,048.6 | $ | 4,733.3 | $ | 4,585.6 | 6.7 | % | 10.1 | % | |||||||
Per common share | $ | 16.82 | $ | 17.72 | $ | 17.58 | -5.1 | % | -4.3 | % | ||||||||
Composition of shareholders' equity per share: | ||||||||||||||||||
Equity before items below | $ | 16.05 | $ | 16.26 | $ | 16.17 | -1.3 | % | -0.7 | % | ||||||||
Unrealized investment gains (losses) and other | ||||||||||||||||||
accumulated comprehensive income (loss) | 0.77 | 1.46 | 1.41 | N/M | N/M | |||||||||||||
Total | $ | 16.82 | $ | 17.72 | $ | 17.58 | -5.1 | % | -4.3 | % | ||||||||
Segmented composition of shareholders' equity per share: | ||||||||||||||||||
Excluding run-off segment | $ | 15.41 | $ | 16.14 | $ | 16.26 | -4.5 | % | -5.2 | % | ||||||||
RFIG run-off segment | 1.41 | 1.58 | 1.32 | -10.8 | 6.8 | |||||||||||||
Consolidated total | $ | 16.82 | $ | 17.72 | $ | 17.58 | -5.1 | % | -4.3 | % | ||||||||
Shareholders' Equity Per Share | ||||||||||||
Quarters Ended March 31, | ||||||||||||
2018 | 2017 | |||||||||||
Beginning balance | $ | 17.72 | $ | 17.16 | ||||||||
Changes in shareholders' equity: | ||||||||||||
Post-tax net operating income (loss) | 0.40 | 0.40 | ||||||||||
Post-tax net realized investment gains (losses) | 0.04 | 0.03 | ||||||||||
Post-tax net unrealized investment gains (losses) on securities carried at fair value: | ||||||||||||
Reported in net income (loss) | (0.43) | - | ||||||||||
Reported as other comprehensive income (loss) | (0.39) | 0.16 | ||||||||||
Subtotal | (0.82) | 0.16 | ||||||||||
Total post-tax realized and unrealized investment gains (losses) | (0.78) | 0.19 | ||||||||||
Cash dividends | (0.1950) | (0.1900) | ||||||||||
Debt conversion, stock issuance, and other transactions | (0.33) | 0.02 | ||||||||||
Net change | (0.90) | 0.42 | ||||||||||
Ending balance | $ | 16.82 | $ | 17.58 | ||||||||
Percentage change for the period | -5.1 | % | 2.4 | % | ||||||||
Capitalization – The following table shows the components of total capitalization. The most significant change for the twelve months ended March 31, 2018 relates to the conversion of all of the convertible senior notes due 2018 into the Company’s common stock. |
Capitalization | ||||||||||||||
March 31, | December 31, | March 31, | ||||||||||||
2018 | 2017 | 2017 | ||||||||||||
Debt: | ||||||||||||||
3.75% Convertible Senior Notes due 2018 | $ | - | $ | 470.6 | $ | 548.2 | ||||||||
4.875% Senior Notes due 2024 | 396.3 | 396.2 | 395.8 | |||||||||||
3.875% Senior Notes due 2026 | 545.3 | 545.1 | 544.7 | |||||||||||
ESSOP debt | - | 4.2 | 4.2 | |||||||||||
Other miscellaneous debt with an average yield of 3.0% | 32.4 | 32.4 | 32.4 | |||||||||||
Total debt | 974.1 | 1,448.7 | 1,525.5 | |||||||||||
Common shareholders' equity | 5,048.6 | 4,733.3 | 4,585.6 | |||||||||||
Total capitalization | $ | 6,022.7 | $ | 6,182.0 | $ | 6,111.1 | ||||||||
Capitalization ratios: | ||||||||||||||
Debt | 16.2 | % | 23.4 | % | 25.0 | % | ||||||||
Common shareholders' equity | 83.8 | 76.6 | 75.0 | |||||||||||
Total | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||
Managing Old Republic's Insurance Business for the Long-Run |
• | Summary Financial Statements and Common Stock Statistics |
• | About Old Republic |
• | Safe Harbor Statement |
• | A financial supplement to this news release is available on the Company's website: www.oldrepublic.com |
Old Republic International Corporation | ||||||||||
Summary Financial Statements and Common Stock Statistics (Unaudited) | ||||||||||
March 31, | December 31, | March 31, | ||||||||
SUMMARY BALANCE SHEETS: | 2018 | 2017 | 2017 | |||||||
Assets: | ||||||||||
Cash and fixed maturity securities | $ | 9,748.1 | $ | 10,145.9 | $ | 10,024.2 | ||||
Equity securities | 3,149.7 | 3,265.5 | 3,012.2 | |||||||
Other invested assets | 128.1 | 124.9 | 131.1 | |||||||
Cash and invested assets | 13,026.0 | 13,536.4 | 13,167.5 | |||||||
Accounts and premiums receivable | 1,516.1 | 1,469.7 | 1,461.2 | |||||||
Prepaid federal income taxes | 114.3 | 114.3 | 114.3 | |||||||
Reinsurance balances recoverable | 3,401.9 | 3,371.8 | 3,280.6 | |||||||
Sundry assets | 940.3 | 911.1 | 881.6 | |||||||
Total | $ | 18,998.8 | $ | 19,403.5 | $ | 18,905.4 | ||||
Liabilities and Shareholders' Equity: | ||||||||||
Policy liabilities | $ | 2,267.5 | $ | 2,176.3 | $ | 2,131.1 | ||||
Claim reserves | 9,272.4 | 9,237.6 | 9,231.3 | |||||||
Federal income tax payable: | Current | 27.2 | 6.5 | 42.1 | ||||||
Deferred | 33.4 | 100.5 | 64.8 | |||||||
Debt | 974.1 | 1,448.7 | 1,525.5 | |||||||
Sundry liabilities | 1,375.2 | 1,700.5 | 1,324.8 | |||||||
Shareholders' equity | 5,048.6 | 4,733.3 | 4,585.6 | |||||||
Total | $ | 18,998.8 | $ | 19,403.5 | $ | 18,905.4 | ||||
Quarters Ended | Fiscal Twelve Months Ended | ||||||||||||
SUMMARY INCOME STATEMENTS: | March 31, | March 31, | |||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||
Net premiums and fees earned | $ | 1,330.4 | $ | 1,301.0 | $ | 5,569.1 | $ | 5,388.6 | |||||
Net investment income | 105.8 | 101.2 | 414.0 | 392.0 | |||||||||
Other income | 30.6 | 27.6 | 105.2 | 107.6 | |||||||||
Net realized investment gains (losses) from actual sale transactions | 15.5 | 14.8 | 212.3 | 43.5 | |||||||||
Unrealized investment gains (losses) from changes in fair value of equity securities | (152.0) | - | (152.0) | - | |||||||||
Total revenues | 1,330.4 | 1,444.8 | 6,148.7 | 5,931.7 | |||||||||
Claim costs | 594.0 | 563.4 | 2,509.4 | 2,337.3 | |||||||||
Sales and general expenses | 728.0 | 700.2 | 3,023.6 | 2,870.2 | |||||||||
Interest and other costs | 14.4 | 16.4 | 61.0 | 55.9 | |||||||||
Total expenses | 1,336.4 | 1,280.1 | 5,594.1 | 5,263.4 | |||||||||
Pretax income (loss) | (6.0) | 164.7 | 554.6 | 668.3 | |||||||||
Income taxes (credits) | (10.1) | 51.6 | 103.1 | 211.2 | |||||||||
Net income (loss) | $ | 4.0 | $ | 113.1 | $ | 451.5 | $ | 457.1 | |||||
COMMON STOCK STATISTICS: | |||||||||||||
Net income (loss): | Basic | $ | 0.01 | $ | 0.43 | $ | 1.69 | $ | 1.75 | ||||
Diluted | $ | 0.01 | $ | 0.39 | $ | 1.55 | $ | 1.58 | |||||
Components of earnings per share: | |||||||||||||
Basic, net operating income (loss) | $ | 0.40 | $ | 0.40 | $ | 1.22 | $ | 1.65 | |||||
Realized investment gains (losses) from actual sale transactions | 0.04 | 0.03 | 0.92 | 0.10 | |||||||||
Unrealized investment gains (losses) from changes in fair value of equity securities | (0.43) | - | (0.45) | - | |||||||||
Basic net income (loss) | $ | 0.01 | $ | 0.43 | $ | 1.69 | $ | 1.75 | |||||
Diluted, net operating income (loss) | $ | 0.40 | $ | 0.36 | $ | 1.13 | $ | 1.49 | |||||
Realized investment gains (losses) from actual sale transactions | 0.04 | 0.03 | 0.82 | 0.09 | |||||||||
Unrealized investment gains (losses) from changes in fair value of equity securities | (0.43) | - | (0.40) | - | |||||||||
Diluted net income (loss) | $ | 0.01 | $ | 0.39 | $ | 1.55 | $ | 1.58 | |||||
Cash dividends on common stock | $ | 0.1950 | $ | 0.1900 | $ | 1.7650 | $ | 0.7525 | |||||
Book value per share | $ | 16.82 | $ | 17.58 | |||||||||
Common shares outstanding: | |||||||||||||
Average basic | 278,116,902 | 260,784,905 | 266,567,472 | 260,487,776 | |||||||||
Average diluted | 279,528,034 | 298,239,349 | 300,224,931 | 297,726,698 | |||||||||
Actual, end of period | 300,199,982 | 260,951,345 | |||||||||||
SUMMARY STATEMENTS OF COMPREHENSIVE INCOME (LOSS): | |||||||||||||
Net income (loss) as reported | $ | 4.0 | $ | 113.1 | $ | 451.5 | $ | 457.1 | |||||
Post-tax net unrealized gains (losses) | (117.8) | 42.5 | (86.4) | 160.2 | |||||||||
Other adjustments | (3.1) | 1.6 | (13.2) | (2.6) | |||||||||
Net adjustments | (120.9) | 44.1 | (99.6) | 157.6 | |||||||||
Comprehensive income (loss) | $ | (116.8) | $ | 157.2 | $ | 351.8 | $ | 614.7 | |||||
For Old Republic's latest news releases and other corporate documents: Please visit us at www.oldrepublic.com | ||
Alternatively, please write or call: Investor Relations Old Republic International Corporation 307 North Michigan Avenue • Chicago, IL 60601 312-346-8100 |
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