Old Republic International Corporation

02/26/2026 | Press release | Distributed by Public on 02/26/2026 14:42

Annual Report for Fiscal Year Ending 12/31, 2025 (Form 10-K)

Management's Discussion and Analysis of Financial Condition and Results of Operations
($ in Millions, Except Share Data)
OVERVIEW
This management discussion and analysis of financial condition and results of operations pertains to the consolidated accounts of Old Republic International Corporation, its subsidiaries, and any variable interest entities that meet the requirements for consolidation (collectively, "Old Republic", "ORI", or "the Company"). The Company conducts its business through a number of operating companies, which utilize one or more insurance company subsidiaries to issue their policies, and is organized into two segments: Specialty Insurance and Title Insurance. The Republic Financial Indemnity Group (RFIG) Run-off business through the effective date of its sale of May 31, 2024 and a small life and accident insurance business, together accounting for 0.1% of consolidated operating revenues for the year ended December 31, 2025, and 0.3% of consolidated assets as of that date, are included within the Corporate & Other caption of this report.
The consolidated accounts are presented in conformity with the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) of accounting principles generally accepted in the United States of America (GAAP). As a publicly held company, Old Republic utilizes GAAP to comply with the financial reporting requirements of the Securities and Exchange Commission (SEC). The FASB and the SEC periodically issue various releases, most of which require additional financial statement disclosures and provide related application guidance. Recent guidance issued by the FASB is summarized further in the Notes to Consolidated Financial 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 accounting practices and GAAP are summarized in Note 1 in the Notes to Consolidated Financial Statements.
The insurance business is distinguished from most others in that the prices (premiums) charged for most products are set without knowing what the ultimate loss costs will be. The Company also cannot know exactly when claims will be paid, which may be many years after a policy was issued or expired. This casts Old Republic as a risk-taking enterprise managed for the long run. Old Republic therefore conducts its business with a primary focus on achieving favorable underwriting results over cycles, and on maintaining a sound financial condition to support its 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 engages in an ongoing assessment of operating 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 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 income and equity securities for long periods of time is 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 is managed for the long run and with little regard to quarterly or even annual reporting periods. These time frames are too short. Management believes results are best evaluated by looking at underwriting and overall operating performance trends over 10-year intervals. These likely include one or two economic and/or underwriting cycles. This provides enough time for these cycles to run their course, for premium rate changes and subsequent underwriting results to be reflected in financial statements, and for reserved loss costs to be quantified with greater certainty.
This management discussion and analysis should be read in conjunction with the consolidated financial statements and the accompanying footnotes.
This section of this Form 10-K generally includes data for 2025, 2024, and 2023 annual periods along with a discussion primarily focused on year-to-year comparisons between 2025 and 2024. Detailed discussions of year-to-year comparisons between 2024 and 2023 can be found in Item 7 - Management's Discussion and Analysis of Financial Condition and Results of Operations of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024, incorporated herein by reference.
EXECUTIVE SUMMARY
Old Republic reported the following consolidated results for the year ended December 31, 2025:
•Net income of $935.4, compared to $852.7 last year.
•Net income excluding investment gains (losses) (net operating income) of $792.5, compared to $797.0 last year.
•Net operating income per diluted share of $3.15, compared to $3.03 last year.
•Consolidated net premiums and fees earned of nearly $8.1 billion, an increase of 10.1% over last year.
•Net investment income of $708.7, an increase of 5.3% over last year.
•Consolidated combined ratio of 94.7%, compared to 93.9% last year.
•Favorable loss reserve development of 2.4 points, compared to 2.2 points last year.
•Book value per share of $24.21, inclusive of cash dividends declared, up 22.0% since year-end 2024.
•Operating return on beginning of year equity of 14.1%.
•Total capital returned to shareholders of $1,022.
OVERALL RESULTS ATTRIBUTABLE TO SHAREHOLDERS
Years Ended December 31: 2025 2024 2023
Net income $ 935.4 $ 852.7 $ 598.6
Net of tax investment gains (losses) 142.8 55.7 (150.8)
Net income excluding investment gains (losses) $ 792.5 $ 797.0 $ 749.5
Combined ratio 94.7 % 93.9 % 92.6 %
PER DILUTED SHARE ATTRIBUTABLE TO SHAREHOLDERS
Years Ended December 31: 2025 2024 2023
Net income $ 3.72 $ 3.24 $ 2.10
Net of tax investment gains (losses) 0.57 0.21 (0.53)
Net income excluding investment gains (losses) $ 3.15 $ 3.03 $ 2.63
SHAREHOLDERS' EQUITY (BOOK VALUE)
December 31: 2025 2024
Total $ 5,914.0 $ 5,618.9
Per common share $ 24.21 $ 22.84
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 Company's obligations. Although Generally Accepted Accounting Principles (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.
FINANCIAL HIGHLIGHTS
% Change
2025 2024
Years Ended December 31: 2025 2024 2023 vs. 2024 vs. 2023
SUMMARY INCOME STATEMENTS:
Revenues:
Net premiums and fees earned $ 8,052.9 $ 7,310.8 $ 6,707.7 10.1 % 9.0 %
Net investment income 708.7 673.1 578.3 5.3 16.4
Other income 194.9 177.6 163.1 9.8 8.9
Total operating revenues 8,956.6 8,161.6 7,449.3 9.7 9.6
Net investment gains (losses):
Realized from actual transactions and impairments
202.0 94.3 (21.4)
Realized from sale of mortgage insurance business - (5.4) (45.6)
Unrealized from changes in fair value of equity securities (22.3) (18.9) (123.9)
Total net investment gains (losses) 179.7 69.9 (190.9)
Total revenues 9,136.3 8,231.5 7,258.3
Operating expenses:
Loss and loss adjustment expenses 3,377.3 3,048.0 2,596.6 10.8 17.4
Underwriting, acquisition, and other expenses 4,504.5 4,036.4 3,843.6 11.6 5.0
Interest and other expenses 70.3 77.3 70.5 (9.0) 9.6
Total expenses 7,952.3 7,161.7 6,510.8 11.0 % 10.0 %
Pretax income 1,184.0 1,069.7 747.4
Income taxes 242.1 216.9 148.7
Total net income 941.9 852.7 598.6
Net income attributable to noncontrolling interests 6.5 - -
Net income attributable to shareholders $ 935.4 $ 852.7 $ 598.6
COMMON STOCK STATISTICS:
Components of net income per share:
Basic net income excluding investment gains (losses)
$ 3.23 $ 3.09 $ 2.65 4.5 % 16.6 %
Net investment gains (losses):
Realized investment gains (losses) 0.65 0.27 (0.19)
Unrealized from changes in fair value of equity securities (0.06) (0.06) (0.34)
Basic net income $ 3.82 $ 3.30 $ 2.12
Diluted net income excluding investment gains (losses) $ 3.15 $ 3.03 $ 2.63 4.0 % 15.2 %
Net investment gains (losses):
Realized investment gains (losses) 0.63 0.27 (0.19)
Unrealized from changes in fair value of equity securities (0.06) (0.06) (0.34)
Diluted net income $ 3.72 $ 3.24 $ 2.10
Cash dividends declared on common stock $ 3.66 $ 3.06 $ 0.98 19.6 % 212.2 %
The information presented in the following table highlights the most meaningful indicators of Old Republic's segmented and consolidated financial performance. The information underscores the Company's performance, as well as the sound investment of its capital and underwriting cash flows.
Sources of Consolidated Income
2025 2024
Years Ended December 31: 2025 2024 2023 vs. 2024 vs. 2023
Net premiums and fees earned:
Specialty Insurance $ 5,184.8 $ 4,677.0 $ 4,119.2 10.9 % 13.5 %
Title Insurance 2,858.6 2,619.1 2,562.8 9.1 2.2
Corporate & Other 9.4 14.6 25.6 (35.6) (42.8)
Consolidated $ 8,052.9 $ 7,310.8 $ 6,707.7 10.1 % 9.0 %
Underwriting income (loss): (a)
Specialty Insurance $ 352.6 $ 364.0 $ 406.0 (3.2) % (10.3) %
Title Insurance 69.9 79.7 75.4 (12.3) 5.7
Corporate & Other (56.5) (39.8) (50.8) (42.1) 21.8
Consolidated $ 365.9 $ 404.0 $ 430.6 (9.4) % (6.2) %
Consolidated combined ratio:
Loss ratio:
Current year 44.3 % 43.9 % 43.3 %
Prior years (2.4) (2.2) (4.6)
Total 41.9 41.7 38.7
Expense ratio 52.8 52.2 53.9
Combined ratio 94.7 % 93.9 % 92.6 %
Net investment income:
Specialty Insurance $ 611.7 $ 546.5 $ 462.7 11.9 % 18.1 %
Title Insurance 69.6 63.2 57.0 10.2 10.8
Corporate & Other 27.3 63.3 58.5 (56.9) 8.2
Consolidated $ 708.7 $ 673.1 $ 578.3 5.3 % 16.4 %
Interest and other expenses (income):
Specialty Insurance $ 64.3 $ 62.3 $ 80.9
Title Insurance (0.3) (1.1) (1.0)
Corporate & Other (b) 6.3 16.1 (9.3)
Consolidated $ 70.3 $ 77.3 $ 70.5 (9.0) % 9.6 %
Pretax income excluding investment gains (losses):
Specialty Insurance $ 900.0 $ 848.3 $ 787.8 6.1 % 7.7 %
Title Insurance 139.9 144.1 133.5 (2.9) 7.9
Corporate & Other (35.6) 7.3 16.9 N/M (56.5)
Consolidated 1,004.3 999.8 938.4 0.5 % 6.5 %
Income taxes 205.2 202.7 188.8
Net income excluding investment gains (losses)
799.1 797.0 749.5 0.3 % 6.3 %
Consolidated pretax investment gains (losses):
Realized from actual transactions and impairments 202.0 94.3 (21.4)
Realized from sale of mortgage insurance business
- (5.4) (45.6)
Unrealized from changes in fair value of equity securities (22.3) (18.9) (123.9)
Total 179.7 69.9 (190.9)
Income taxes (credits) 36.8 14.2 (40.0)
Net of tax investment gains (losses)
142.8 55.7 (150.8)
Total net income
941.9 852.7 598.6
Net income attributable to noncontrolling interests
6.5 - -
Net income attributable to shareholders
$ 935.4 $ 852.7 $ 598.6
(a) Includes related services.
(b) Includes consolidation/elimination entries.
Specialty Insurance Segment Operating Results
% Change
2025 2024
Years Ended December 31: 2025 2024 2023 vs. 2024 vs. 2023
Revenues:
Net premiums written $ 5,430.1 $ 5,030.5 $ 4,356.3 7.9 % 15.5 %
Net premiums earned 5,184.8 4,677.0 4,119.2 10.9 13.5
Other income 194.4 177.0 162.2 9.8 9.1
Expenses:
Loss and loss adjustment expenses 3,311.9 2,999.1 2,553.3 10.4 17.5
Underwriting, acquisition, and other expenses 1,714.7 1,490.8 1,322.2 15.0 12.7
Segment underwriting income
352.6 364.0 406.0 (3.2) (10.3)
Add: Net investment income 611.7 546.5 462.7 11.9 18.1
Less: Interest and other charges 64.3 62.3 80.9 3.2 (22.9)
Segment pretax operating income $ 900.0 $ 848.3 $ 787.8 6.1 % 7.7 %
Loss ratio:
Current year 66.8 % 66.4 % 67.7 %
Prior years (2.9) (2.3) (5.7)
Total 63.9 64.1 62.0
Expense ratio 29.3 28.1 28.2
Combined ratio 93.2 % 92.2 % 90.2 %
Specialty Insurance net premiums earned increased 10.9% in 2025, driven by a combination of premium rate increases, high renewal retention ratios, and new business production, including an increasing contribution from new operating companies. Premium growth was most pronounced within commercial auto, general liability, property, and accident & health coverages while Canadian premiums (travel accident and trucking) declined. Commercial auto rate increases accelerated, and general liability continued to achieve significant rate increases.
The net investment income increase was driven by higher investment yields earned, along with contributions from a higher invested asset base.
Overall, the 2025 Specialty Insurance loss ratio reflects a slightly higher current year loss ratio along with a higher level of favorable prior year loss reserve development. While strong favorable prior year development was recognized in commercial auto, the fourth quarter included a current accident year loss provision resulting primarily from higher loss trends detected within the liability portion of long-haul trucking case reserves not yet fully evidenced in paid claim data. Accordingly, the commercial auto initial 2025 accident year loss ratio that was recorded for the first nine months of 2025 was increased by approximately 3 percentage points.
Favorable prior year development came predominately from workers' compensation, commercial auto, and property. Strong favorable development within workers' compensation included an offset of $17.6 to increase prior year reserves related to an isolated credit loss on a large-deductible program in which recent elevated claim activity resulted in a collateral deficiency.
The expense ratio for 2025 was elevated but within expectations given the start-up costs of new operating companies and continued investments in personnel and information technology.
Together, these factors produced a profitable combined ratio and strong pretax operating income for 2025. For Specialty Insurance, combined ratios between 90% and 95% are targeted over a full underwriting cycle, recognizing that quarterly and annual ratios and trends may deviate from this range, particularly with long-tailed lines of coverage claim payment patterns.
Title Insurance Segment Operating Results
% Change
2025 2024
Years Ended December 31: 2025 2024 2023 vs. 2024 vs. 2023
Revenues:
Net premiums earned
$ 2,594.4 $ 2,334.6 $ 2,300.9 11.1 % 1.5 %
Title, escrow, and other fees
264.1 284.4 261.8 (7.1) 8.6
Net premiums and fees earned 2,858.6 2,619.1 2,562.8 9.1 2.2
Other income 0.6 0.6 0.7 (3.1) (18.1)
Expenses:
Loss and loss adjustment expenses 62.2 46.1 48.7 35.0 (5.4)
Underwriting, acquisition, and other expenses
2,727.0 2,493.8 2,439.3 9.3 2.2
Segment underwriting income 69.9 79.7 75.4 (12.3) 5.7
Add: Net investment income 69.6 63.2 57.0 10.2 10.8
Less: Interest and other charges (0.3) (1.1) (1.0) 72.7 (11.3)
Segment pretax operating income $ 139.9 $ 144.1 $ 133.5 (2.9) % 7.9 %
Loss ratio:
Current year 3.4 % 3.4 % 3.7 %
Prior years (1.2) (1.6) (1.8)
Total 2.2 1.8 1.9
Expense ratio 95.4 95.2 95.2
Combined ratio 97.6 % 97.0 % 97.1 %
Title Insurance net premiums and fees earned increased 9.1% in 2025. Both agency and directly produced premiums experienced double digit growth, driven by lower interest rates and strong commercial business production. Commercial premiums represented 26% of net premiums earned in 2025 compared to nearly 22% of net premiums earned in 2024. Title, escrow, and other fees declined in 2025 as a result of the sale of certain technology platforms earlier in the year, partially offset by growth in escrow and closing service fees.
Net investment income increased primarily due to higher investment yields earned.
The Title Insurance loss ratios for 2025 reflect lower levels of favorable prior year loss reserve development and relatively consistent current year losses. The 2025 expense ratio benefited from continued expense management, partially offset by higher agent commissions consistent with the higher level of agency business compared to the direct operation. In addition, the 2025 expense ratio includes approximately $15 (0.5 points) in litigation settlement expenses.
Together, these factors produced slightly lower pretax operating income for 2025. For Title Insurance, combined ratios between 90% to 95% are targeted over a full underwriting cycle, recognizing that quarterly and annual ratios and trends may deviate from this range.
Corporate & Other Operating Results
% Change
2025 2024
Years Ended December 31: 2025 2024 2023 vs. 2024 vs. 2023
Net premiums earned $ 9.4 $ 14.6 $ 25.6 (35.6) % (42.8) %
Net investment income (a) 27.3 63.3 58.5 (56.9) 8.2
Operating revenues 36.7 77.9 84.2 (52.9) (7.5)
Operating expenses 72.3 70.5 67.3 2.5 % 4.8
Corporate & Other pretax operating income (loss)
$ (35.6) $ 7.3 $ 16.9 N/M (56.5) %
__________
(a) Net of elimination entries.
Corporate & Other includes a small life and accident insurance business, the RFIG Run-off business through the effective date of its sale of May 31, 2024, the parent holding company, and several internal corporate services subsidiaries. Corporate & Other tends to produce highly variable results stemming from volatility inherent in the lack of scale. Net investment income for 2025 was significantly impacted by a lower invested asset base due to the return of capital to shareholders including the January 2025 special cash dividend payment, the repaymentof $400 of Senior Notes which matured in October 2024, and the sale of the RFIG Run-off business. Operating expenses for 2025 reflect higher personnel costs while full year 2024 expenses reflect additional interest costs associated with debt issued on March 31, 2024 to refinance the Senior Notes which matured in October 2024.
Investments
As of December 31, 2025, the consolidated investment portfolio reflected an allocation of approximately 85% to fixed income securities (bonds and notes) and short-term investments, and 15% to equity securities (common and preferred stocks). The investment management process remains focused on retaining quality investments that produce consistent streams of investment income, while monitoring concentration limits amongst the insurance subsidiaries. The fixed income portfolio continues to be the anchor for obligations to policyholders. The maturities of the fixed income securities are generally matched to the expected liabilities for claim payment obligations to policyholders and their beneficiaries. The equity portfolio consists primarily of high-quality common stocks of U.S. companies with long-term records of reasonable earnings growth and steadily increasing dividends.
Old Republic's investment portfolio is focused on ensuring liquidity for obligations to policyholders and their beneficiaries, as well as the long-term stability of the subsidiaries' capital base. For these reasons, the investment portfolio has extremely limited exposure to high risk or illiquid asset classes such as limited partnerships, derivatives, hedge funds or private equity investments. In addition, the Company does not engage in hedging or securities lending transactions, nor does it invest in securities with values predicated on non-regulated financial instruments with unfunded counterparty risk attributes. Old Republic performs regular stress tests of the investment portfolio to gain reasonable assurance that periodic downdrafts in market prices do not undermine the Company's financial strength.
Shareholders' Equity Per Share
Changes in shareholders' equity per share are reflected in the following table. These changes resulted mostly from net operating income, realized and unrealized investment gains (losses), and dividends to shareholders declared during the year.
Shareholders' Equity Per Share
December 31,
2025 2024 2023
Beginning balance $ 22.84 $ 23.31 $ 21.07
Changes in shareholders' equity:
Net income excluding net investment gains (losses) 3.23 3.09 2.65
Net of tax realized investment gains (losses) 0.65 0.27 (0.19)
Net of tax unrealized investment gains (losses):
Fixed income securities 1.02 0.12 1.31
Equity securities (0.06) (0.06) (0.34)
Total net of tax realized and unrealized
investment gains (losses) 1.61 0.33 0.78
Cash dividends (3.66) (3.06) (0.98)
Other - net
0.19 (0.83) (0.21)
Net change 1.37 (0.47) 2.24
Ending balance $ 24.21 $ 22.84 $ 23.31
Percentage change for the period 6.0 % (2.0) % 10.6 %
Percentage change for the period, inclusive of cash dividends
22.0 % 11.1 % 15.3 %
Total capital returned to shareholders during 2025 was $1,022, comprised of $897 in dividends, and $125 in share repurchases. Changes in shareholders' equity per share for 2025 and 2024 include the impact of special cash dividends of $2.50 per share in December 2025 (paid on January 14, 2026) and $2.00 per share in December 2024 (paid on January 15, 2025).
DETAILED MANAGEMENT DISCUSSION AND ANALYSIS
This section of Management's Discussion and Analysis of Financial Condition and Results of Operations is additive to and should be read in conjunction with the Executive Summary which precedes it.
RESULTS OF OPERATIONS
Consolidated Overview
Premiums & Fees
The major sources of Old Republic's consolidated net earned premiums and fees for the periods shown were as follows:
Net Earned Premiums and Fees
Years Ended December 31: 2025 2024 2023
Specialty Insurance $ 5,184.8 $ 4,677.0 $ 4,119.2
Title Insurance
2,858.6 2,619.1 2,562.8
Corporate & Other
9.4 14.6 25.6
Total
$ 8,052.9 $ 7,310.8 $ 6,707.7
Percentage change from prior period
10.1 % 9.0 % (12.6) %
Consolidated net premiums and fees earned increased 10.1% for 2025 compared to 2024, resulting from strong growth in both Specialty Insurance and Title Insurance.
Net Investment Income
The following tables reflect the invested asset bases as of the indicated dates, the investment income earned, and resulting yields on such assets. Because the Company can exercise little control over fair values, management evaluates yields on the basis of investment income earned in relation to the book value of the underlying invested assets.
Invested Assets at Book Value
Fair
Value
Adjust-
ment 		Invested
Assets at Fair Value
Specialty Insurance
Title Insurance
Corporate
& Other 		Total
As of December 31:
2024 $ 12,489.8 $ 1,334.2 $ 1,211.1 $ 15,035.1 $ 1,043.8 $ 16,079.0
2025 $ 13,125.6 $ 1,338.6 $ 1,033.7 $ 15,498.0 $ 1,341.0 $ 16,839.0
Net Investment Income Yield at
Specialty Insurance
Title Insurance
Corporate
& Other 		Total
Book Value
Fair
Value
Years Ended
December 31:
2023 $ 462.7 $ 57.0 $ 58.5 $ 578.3 3.82 % 3.62 %
2024 546.5 63.2 63.3 673.1 4.47 4.18
2025 $ 611.7 $ 69.6 $ 27.3 $ 708.7 4.64 % 4.31 %
Net investment income increased 5.3% in 2025 compared to 2024, driven by higher investment yields. During 2025, the Company reinvested in corporate fixed income securities with an average yield of 4.9% compared to an average book yield on disposals of 3.9%. The total fixed income portfolio book yield ended 2025 at 4.75% compared to 4.52% at the end of 2024.
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, 2025 and 2024:
Loss and Loss Adjustment Expense Reserves
December 31: 2025 2024
Gross Net Gross Net
Workers' compensation $ 4,698.7 $ 2,642.8 $ 4,653.0 $ 2,604.5
Commercial auto 4,768.9 2,205.2 4,288.6 1,993.2
General liability 2,045.4 915.8 1,763.5 817.0
Financial indemnity
979.9 735.0 926.6 715.2
Other coverages 1,405.7 1,002.9 1,206.1 903.2
Unallocated loss adjustment expense reserves 324.6 324.6 308.1 308.1
Total Specialty Insurance reserves 14,223.5 7,826.6 13,146.2 7,341.5
Title Insurance
545.7 545.7 572.7 572.7
Life and accident 6.4 4.1 8.8 6.4
Total loss and loss adjustment expense reserves $ 14,775.7 $ 8,376.5 $ 13,727.7 $ 7,920.6
Asbestosis and environmental loss reserves included
in the above Specialty Insurance reserves:
Amount $ 162.7 $ 101.3 $ 167.6 $ 106.5
% of total Specialty Insurance reserves 1.1 % 1.3 % 1.3 % 1.5 %
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.
Net loss and loss adjustment expenses incurred as a percentage of premiums and related fee revenues of the Company's two reportable segments and for its consolidated operations were as follows:
Years Ended December 31: 2025 2024 2023
Specialty Insurance 63.9 % 64.1 % 62.0 %
Title Insurance
2.2 1.8 1.9
Consolidated loss ratio 41.9 % 41.7 % 38.7 %
Reconciliation of consolidated loss ratio:
Current year
44.3 % 43.9 % 43.3 %
Prior year net favorable development
(2.4) (2.2) (4.6)
Consolidated loss ratio 41.9 % 41.7 % 38.7 %
Changes to the consolidated loss ratios tend to be driven by mix changes between Specialty Insurance (with loss ratios in the mid- to low-60% range) and Title Insurance (with loss ratios in the 2% range). In 2025, the consolidated loss ratio included an amount of favorable development that is consistent with 2024 and falls within the range of management's expectation.
Management believes that its overall reserving practices have been consistently applied over many years, and that its aggregate net reserves have generally resulted in reasonable approximations of the ultimate net costs of losses incurred. Management maintains hold periods that vary primarily by line of business. However, reserves may be increased within a holding period if the initial expected loss ratio may be inadequate. Conversely, in certain cases, reserves may be released within a holding period when the redundancies are expected to exceed the upper end of the actuarially determined range, or if an increase to an initial expected loss ratio within a hold period is subsequently deemed to be excessive. No representation is made nor is any guaranty given that ultimate net losses and related costs will not develop in future years to be significantly greater or lower than currently established reserve estimates. In management's opinion, such changes in net losses and related costs are not likely to have a material effect on the Company's consolidated financial condition, although it could materially affect its consolidated results of operations for any one annual or interim reporting period. See further discussion in this Annual Report on Form 10-K under Item 1A - Risk Factors.
Underwriting Acquisition and Other Expenses
Expenses incurred as a percentage of premiums and related fee revenues of the Company's two reportable segments and for its consolidated operations were as follows:
Years Ended December 31: 2025 2024 2023
Specialty Insurance 29.3 % 28.1 % 28.2 %
Title Insurance
95.4 95.2 95.2
Consolidated
52.8 % 52.2 % 53.9 %
Changes to the consolidated expense ratios tend to be driven by mix changes between Specialty Insurance (with expense ratios in 30% range) and Title Insurance (with expense ratios in low- to mid-90% range). Variations in the Company's consolidated expense ratios also reflect a continually changing mix of coverages sold and costs of producing business within the segments. To a significant degree, expense ratios for both the Specialty and Title Insurance segments are reflective of variable costs, such as commissions or similar charges, that rise or decline along with corresponding changes in premium and fee income and can fluctuate with line of coverage mix. General operating expenses are routinely subject to timing as well as investments in business expansion and information technology. The 2025 consolidated expense ratio is elevated but within expectations given the start-up costs of new operating companies within Specialty Insurance and continued investments in personnel and information technology.
Combined Ratios
The combined ratios of the above summarized net loss and loss adjustment expenses and underwriting expenses are as follows:
Years Ended December 31: 2025 2024 2023
Specialty Insurance 93.2 % 92.2 % 90.2 %
Title Insurance
97.6 97.0 97.1
Consolidated
94.7 % 93.9 % 92.6 %
Net Investment Gains (Losses)
The Company's investment policies are designed to produce a stable source of income from interest and dividends, support the protection of capital, and provide sufficient liquidity to meet insurance underwriting and other obligations as they become payable in the future.
The composition of net investment gains or losses was as follows:
Years Ended December 31: 2025 2024 2023
Realized investment gains (losses) from actual transactions:
Fixed income $ (3.9) $ (112.1) $ (180.7)
Equity securities and other 209.7 206.5 165.5
Total 205.8 94.3 (15.2)
Impairment losses
(3.8) (5.4) (51.8)
Unrealized gains (losses) from changes in fair value of equity securities (22.3) (18.9) (123.9)
Total investment gains (losses) $ 179.7 $ 69.9 $ (190.9)
The realization of investment gains or losses can be highly discretionary and can be affected by such factors as the timing of individual securities sales, the recording of estimated credit losses from write-downs of impaired securities, tax-planning and tax-rate change considerations, and modifications of investment management judgments regarding the direction of securities markets or the future prospects of individual investees or industry sectors.
Dispositions of fixed income securities from scheduled maturities and early calls were 64.4%, 39.9%, and 48.3% of total fixed income dispositions occurring in 2025, 2024, and 2023, respectively. Realized gain (loss) activity in 2025 was related to the sale of fixed income and equity securities to fund the Company's return of capital through share repurchases and special dividends, as well as portfolio management.
Income Taxes
The effective consolidated income tax rates were 20.4%, 20.3%, and 19.9% in 2025, 2024, and 2023, respectively. Changes in the effective tax rates reflect primarily the varying proportions of pretax operating income derived from partially tax-preferred investment income (principally tax-exempt interest and dividend income).
Segment Underwriting Overview
Specialty Insurance
Summary Underwriting Results
% Change
2025 2024
Years Ended December 31: 2025 2024 2023 vs. 2024 vs. 2023
Revenues:
Net premiums written
$ 5,430.1 $ 5,030.5 $ 4,356.3 7.9 % 15.5 %
Net premiums earned
5,184.8 4,677.0 4,119.2 10.9 13.5
Other income 194.4 177.0 162.2 9.8 9.1
Expenses:
Loss and loss adjustment expenses 3,295.6 2,975.6 2,536.7 10.8 17.3
Dividends to policyholders 16.2 23.5 16.5 (31.1) 42.0
Underwriting, acquisition, and other expenses:
Commissions 622.2 546.8 465.3 13.8 17.5
Insurance taxes, licenses, and fees 203.0 172.7 159.8 17.5 8.1
Subtotal 825.2 719.6 625.2 14.7 15.1
General expenses 889.4 771.1 697.0 15.3 10.6
Total underwriting, acquisition, and
other expenses 1,714.7 1,490.8 1,322.2 15.0 12.7
Segment underwriting income
$ 352.6 $ 364.0 $ 406.0 (3.2) % (10.3) %
Loss ratio:
Current year 66.8 % 66.4 % 67.7 %
Prior years (2.9) (2.3) (5.7)
Total 63.9 64.1 62.0
Expense ratio 29.3 28.1 28.2
Combined ratio 93.2 % 92.2 % 90.2 %
Specialty Insurance continued to produce growth and profitability, reflecting the success of the Company's specialty strategy and operational excellence initiatives. Growth included increasing contributions from new specialty operating companies. In addition, seven Specialty Insurance operating companies continue to expand their writings of surplus lines business for property, general liability, and financial indemnity solutions. Some of the new operating companies target the wholesale distribution channel, where excess & surplus solutions are prevalent.
Following the Company's strategy to add operating companies, narrow and deep in their specialty niche, on October 23, 2025, the Company announced it entered into a definitive agreement to acquire Everett Cash Mutual Insurance Co. and affiliated companies (ECM) following its conversion to a stock company in a sponsored demutualization transaction. ECM is a leading insurer of small farmowners and select commercial agricultural operations. The transaction is expected to close in 2026 upon completion of required regulatory and policyholder approvals. Additionally, on September 30, 2025, the Company announced the formation of its new environmental insurance company that will deliver customized primary and excess liability solutions to businesses of varying scales and complexities. These products will be distributed through a carefully curated network of wholesale and retail brokers, to help ensure that clients receive specific coverage options and the benefit of expert consultation.
Premiums & Fees
The percentage of net earned premiums for major insurance coverages in the Specialty Insurance segment was as follows:
Specialty Insurance Net Earned Premiums by Type of Coverage
Years Ended December 31: 2025 2024 2023
Commercial auto
42.1 % 41.9 % 41.0 %
Workers' compensation
17.0 17.9 19.5
Property 13.4 12.8 11.5
General liability
8.4 7.8 6.1
Financial indemnity 6.9 6.9 8.4
Home and auto warranty 6.5 6.7 7.6
Other coverages
5.7 % 6.0 % 5.9 %
Specialty Insurance net premiums earned increased 10.9% for 2025, driven by a combination of premium rate increases, high renewal retention ratios, and new business production, including an increasing contribution from new operating companies. Premium growth was most pronounced within commercial auto, general liability, property, and accident & health coverages while Canadian premiums (travel accident and trucking) continued to decline. Commercial auto rate increases accelerated in the fourth quarter of 2025 in response to increases in loss trends. General liability continued to achieve significant rate increases.
Loss and Loss Adjustment Expenses
The percentage of net loss and loss adjustment expenses measured against net premiums earned by major types of insurance coverage were as follows:
Specialty Insurance Loss Ratios by Type of Coverage
Years Ended December 31: 2025 2024 2023
Commercial auto 72.3 % 72.4 % 71.5 %
Workers' compensation 59.0 48.0 41.4
Property 53.5 53.2 61.0
General liability 62.7 72.9 76.0
Financial indemnity 48.0 63.9 48.2
Home and auto warranty 54.9 58.2 65.5
Other coverages
71.7 73.1 65.9
All coverages
63.9 % 64.1 % 62.0 %
Overall, the loss ratios for Specialty Insurance in 2025 were consistent with 2024, with a slight increase in the current year loss ratio being offset by higher favorable prior year loss reserve development. When comparing the loss ratios by line of coverage, the 2025 current year ratios were fairly consistent with 2024, however, there were some notable variations of prior year development.
•Workers' compensation had strong favorable development that was considerably less than the level experienced in 2024. In 2025, prior year reserves increased by $17.6 related to an isolated credit loss on a large-deductible program. Recent elevated claim activity experienced by this program resulted in a collateral deficiency;
•General liability had minimal unfavorable development in 2025 compared to an elevated level in 2024; and
•Financial indemnity had favorable development in 2025 compared to unfavorable development in 2024 that was due to reserve strengthening of transactional risk reserves.
Net favorable reserve development in 2025 came primarily from:
•Workers' compensation (favorable development predominantly from accident years 2020 and prior, partially offset by unfavorable development predominantly from years 2021-2024);
•Commercial auto (favorable development predominantly from accident years 2022 and prior, partially offset by unfavorable development from 2023); and
•Property, which includes commercial multi-peril (favorable development predominantly from accident years 2015-2024).
A summary of reserve activity, including estimates for IBNR, relating to A&E claims at December 31, 2025 and 2024 is as follows:
December 31: 2025 2024
Gross Net Gross Net
Asbestosis:
Reserves at beginning of year $ 146.2 $ 88.4 $ 109.2 $ 70.2
Loss and loss expenses incurred 10.7 2.3 52.1 27.9
Loss and loss adjustment expenses paid 15.9 7.9 15.1 9.7
Reserves at end of year 140.9 82.8 146.2 88.4
Environmental:
Reserves at beginning of year 21.4 18.1 21.4 17.3
Loss and loss expenses incurred 5.8 5.4 1.3 1.2
Loss and loss adjustment expenses paid 5.4 5.0 1.3 0.4
Reserves at end of year 21.8 18.4 21.4 18.1
Total asbestosis and environmental reserves $ 162.7 $ 101.3 $ 167.6 $ 106.5
Asbestosis and environmental (A&E) claim developments included in the general liability coverages above are typically attributable to periodic re-evaluations of such reserves as well as subsequent reclassifications of other coverages' reserves, most often workers' compensation, deemed assignable to the A&E category of losses. Except for a small portion from ongoing primary insurance operations, a large majority of the A&E claim reserves posted by Old Republic stem mainly from its participations in assumed reinsurance treaties and insurance pools which were discontinued during the 1980's and have since been in run-off status. With respect to the primary portion of gross A&E reserves, Old Republic administers the related claims through its claims personnel as well as outside attorneys, and posted reserves reflect its best estimates of ultimate claim costs. Claims administration for the assumed portion of the Company's A&E exposures is handled by the claims departments of unaffiliated primary or ceding reinsurance companies. While the Company performs periodic reviews of certain claim files managed by third parties, the overall A&E reserves it establishes respond to the paid claim and case reserve activity reported to the Company as well as available industry statistical data such as survival ratios. Such ratios represent the number of years' average paid losses for the three or five most recent calendar years that are encompassed by an insurer's A&E reserve level at any point in time. According to this analysis of an insurer's A&E loss reserve level, Old Republic's average five-year paid loss survival ratios stood at 7.8 years (gross) and 7.7 years (net of reinsurance) as of December 31, 2025, and 8.3 years (gross) and 8.4 years (net of reinsurance) as of December 31, 2024. Fluctuations in this ratio between years can be caused by the inconsistent payout patterns associated with these types of claims. For the five years ended December 31, 2025, incurred A&E claims and related loss settlement costs have averaged 0.6% of average annual Specialty Insurance loss and loss adjustment expenses.
Sales and General Expenses
The expense ratio for 2025 was elevated compared to 2024 but within expectations given the continued start-up costs of new operating companies and investments in personnel and information technology. Specialty Insurance has started up five new operating companies in the last four years that are not operating at full scale. Depending on the operating company, it can take three to five years before scale is achieved, and the operating company becomes accretive to earnings. In addition, Specialty Insurance is investing in modernizing core systems (policy administration, claims, billing, and data warehouse) at several operating companies. Some of these modernization projects have reached the point where the new core system has been put into production while the system being replaced remains in service for some period of time. The Company expects some level of these redundant costs to exist over the next few years, at which time expenses should decrease as the old systems are fully decommissioned. Additional information technology investments are also being made in data and analytics and artificial intelligence initiatives.
Title Insurance
Summary Underwriting Results
% Change
2025 2024
Years Ended December 31: 2025 2024 2023 vs. 2024 vs. 2023
Revenues:
Net premiums earned $ 2,594.4 $ 2,334.6 $ 2,300.9 11.1 % 1.5 %
Title, escrow, and other fees 264.1 284.4 261.8 (7.1) 8.6
Total premiums and fees 2,858.6 2,619.1 2,562.8 9.1 2.2
Other income 0.6 0.6 0.7 (3.1) (18.1)
Expenses:
Loss and loss adjustment expenses 62.2 46.1 48.7 35.0 (5.4)
Underwriting, acquisition, and other expenses:
Commissions 1,784.8 1,601.2 1,608.1 11.5 (0.4)
Insurance taxes, licenses, and fees 45.0 37.5 18.7 19.9 100.0
Subtotal 1,829.9 1,638.7 1,626.8 11.7 0.7
General expenses 897.1 855.1 812.4 4.9 5.3
Total underwriting, acquisition, and
other expenses 2,727.0 2,493.8 2,439.3 9.3 2.2
Segment underwriting income
$ 69.9 $ 79.7 $ 75.4 (12.3) % 5.7 %
Loss ratio (a):
Current year 3.4 % 3.4 % 3.7 %
Prior years (1.2) (1.6) (1.8)
Total 2.2 1.8 1.9
Expense ratio 95.4 95.2 95.2
Combined ratio 97.6 % 97.0 % 97.1 %
__________
(a) Title loss, expense, and combined ratios are calculated on the basis of combined net premiums and fees earned.
Title Insurance experienced premium growth compared to last year, however, an elevated combined ratio reflects difficult market conditions, lower favorable reserve development, a litigation settlement expense, and the cyclical nature of this business.
Premiums & Fees
Title Insurance premium and fee revenues stemming from the Company's direct operations (which include branch offices of its title insurers and wholly-owned agency subsidiaries) are generally recognized as income at the transaction 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. Title premium and fee revenues produced by independent title agents are recognized upon receipt, rather than making estimates that could be subject to significant variance from actual premium and fee production. Such receipts can result in up to a four-month lag relative to the effective date of the underlying title policy and are offset concurrently by production expenses and loss reserve provisions.
The following table shows the percentage distribution of Title Insurance premium and fee revenues by production sources:
Premium and Fee Production by Source
Years Ended December 31: 2025 2024 2023
Direct Operations 21.9 % 23.0 % 21.0 %
Independent Title Agents 78.1 % 77.0 % 79.0 %
Title Insurance net premiums and fees earned increased 9.1% in 2025. Both agency and directly produced premiums experienced double digit growth, driven by lower interest rates and strong commercial business production. Commercial premiums represented 26% of net premiums earned. Title, escrow, and other fees declined 7.1% as a result of the sale of certain technology platforms earlier in the year which was slightly offset by growth in escrow and closing service fees.
Loss and Loss Adjustment Expenses
Title Insurance loss ratios have remained in the low single digits for a number of years due to a continuation of favorable trends in claims frequency and severity. Favorable developments of reserves established in prior years continued to reduce the loss ratios for the periods reported. The Title Insurance loss ratios reflect a lower level of favorable prior year loss reserve development and consistent current year losses. The favorable development in 2025, primarily from years 2019-2022, was partially offset by unfavorable development from 2018, 2023, and 2024.
Sales and General Expenses
The 2025 expense ratio benefited from continued expense management, partially offset by higher agent commissions consistent with the higher level of agency business compared to the direct operation. In addition, the expense ratio for 2025 includes approximately $15 (0.5 points) in litigation settlement expenses.
FINANCIAL CONDITION
The resiliency of ORI's business model rests on the 19 different P&C operating companies within Specialty Insurance and Title Insurance. Each operating company is a specialist, narrow and deep in their specialty niche, with a keen focus on service, including distribution, claims, underwriting, and risk control. They operate with autonomy and accountability, with the attendant benefits of diversification to manage risk. The portfolio of diverse specialty businesses is supported by a strong balance sheet, conservatively managed and reflected by an A+ rating from A.M. Best. ORI's ongoing profitability and strong balance sheet has enabled the return of a record amount of capital to shareholders in recent years. With 7.3% insider ownership, ORI's employees, officers, and directors are directly aligned with shareholder value creation.
Balance Sheet Metrics and Performance Statistics
December 31:
2025 2024
Total investments $ 16,839.0 $ 16,079.0
Total assets 29,862.7 27,843.1
Long-term debt 1,589.9 1,588.7
Total liabilities
23,934.2 22,224.1
Total shareholders' equity
5,914.0 5,618.9
Book value per share 24.21 22.84
Debt to equity ratio 26.9 % 28.3 %
Total assets at December 31, 2025 increased 7.3% since year-end 2024, including an increase of 4.7% in total investments from strong operating cash flows and higher valuations, partially offset by the return of excess capital, including the $496.1 special dividend paid in the first quarter 2025. Total liabilities increased 7.7% since year-end 2024, including expected growth in insurance balances, a higher deferred income tax liability primarily related to higher valuations of investments, and similar dividend payable amounts in both years related to special dividends declared but unpaid. Shareholder's equity increased 5.3%, resulting in a debt to equity ratio of 26.9%.
ORI's growth in book value per share including dividends is one of the various markers of performance and strength, calculated as the sum of the annual change in book value per share plus cash dividends declared. As shown in the tables below, this amounts to 22.0% for 2025, compared with 11.1% for 2024. The increase, in addition to strong dividends, was primarily due to strong net operating income and higher gains from the investment portfolio. The primary drivers and total of ORI's growth in book value are shown in the tables below.
Drivers of Growth in Book Value Including Dividends
Years Ended December 31: 2025 2024
Net operating income
14.1 % 13.3 %
Realized investment gains
2.8 1.2
Unrealized from changes in fair value of equity securities
4.2 0.3
Other
0.8 (3.6)
Total
22.0 % 11.1 %
Growth in Book Value Including Dividends
Years Ended December 31: 2025 2024
End of period book value
$ 24.21 $ 22.84
Less beginning of period book value
22.84 23.31
Change in book value
1.37 (0.47)
Dividend declared to shareholders
(3.66) (3.06)
Total
$ 5.03 $ 2.59
Total from change in book value
6.0 % (2.0) %
Total from dividends declared to shareholders
16.0 13.1
Total growth in book value including dividends
22.0 % 11.1 %
Investment Portfolio
Old Republic continues to adhere to its long-term policy of investing primarily in investment grade, marketable securities. At both December 31, 2025 and 2024, nearly all of the Company's investments consisted of marketable securities. The investment portfolio has extremely limited exposure to high risk or illiquid asset classes such as limited partnerships, derivatives, hedge funds or private equity investments. In addition, the Company does not engage in hedging or securities lending transactions, nor does it invest in securities with values predicated on non-regulated financial instruments with unfunded counterparty risk attributes. At December 31, 2025, the Company had no fixed income securities in default as to principal and/or interest.
Short-term maturity investment positions reflect a large variety of factors including current operating needs, expected operating cash flows, 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 fixed income 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 fixed income investment portfolio that is not subject to extreme interest rate sensitivity and principal deterioration.
The fair value of the Company's fixed income 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 fixed income 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 income securities. By contrast, a decline in such rates reduces currently available yields but usually serves to increase the fair value of the existing fixed income investment portfolio. All such changes in fair value of securities are reflected, net of deferred income taxes, directly in the common shareholders' equity account, and as a separate component of the consolidated statements of comprehensive income. Given the Company's inability to forecast or control the movement of interest rates, Old Republic sets the maturity spectrum of its fixed income 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 fixed income 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 following tables show certain information relating to the Company's fixed income and equity portfolios as of the dates shown.
Fixed Income Securities Stratified by Credit Quality (a)
December 31: 2025 2024
Aaa 1.1 % 18.0 %
Aa 23.1 9.4
A 42.5 40.5
Baa 32.3 30.7
Total investment grade 99.0 98.6
Non-investment grade or non-rated issuers 1.0 1.4
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.
With approximately 99.0% and 98.6% of the Company's fixed income securities considered investment grade at December 31, 2025 and 2024, respectively, tight credit spreads have resulted in a preference toward purchases of higher rated securities in recent years. The shift in credit quality within investment grade securities from 2024 to 2025 is largely due to the downgrade of U.S. Treasury Notes by several major credit rating agencies during 2025. The Company primarily owns U.S. Treasury Notes to place on deposit with the states its insurance companies are licensed to conduct business.
Gross Unrealized Gains and Losses Stratified by Industry Concentration for Fixed Income Securities
December 31, 2025
Amortized Cost
Gross
Unrealized
Gains 		Gross
Unrealized
Losses
Fair
Value
Non-Investment Grade Fixed Income Securities by Industry Concentration:
Basic Materials $ 43.6 $ 0.9 $ 0.1 $ 44.4
Consumer, Cyclical 41.1 0.1 0.9 40.3
Industrial 21.5 0.1 0.2 21.4
Energy 8.8 - - 8.8
Other (includes two industry groups) 11.8 0.7 0.1 12.4
Total $ 127.1 $ 2.0 $ 1.5 $ 127.6
Investment Grade Fixed Income Securities by Industry Concentration:
Consumer, Non-cyclical $ 2,273.9 $ 53.8 $ 1.8 $ 2,325.9
Utilities 2,272.5 53.2 7.0 2,318.8
Government 1,790.7 13.2 20.9 1,783.1
Industrial 1,648.5 42.1 2.1 1,688.5
Financial 1,578.4 38.0 1.4 1,615.0
Consumer, Cyclical 904.2 23.5 0.3 927.5
Energy 699.6 15.3 1.5 713.4
Other (includes four industry groups) 1,183.4 27.6 1.2 1,209.7
Total $ 12,351.7 $ 267.1 $ 36.6 $ 12,582.1
In the above tables, the unrealized losses on fixed income securities are primarily deemed to reflect changes in the interest rate environment and not indicative of a deterioration of credit quality. Consistent with a lower interest rate environment, gross unrealized gains have increased while gross unrealized losses have decreased from 2024 to 2025.
Gross Unrealized Gains and Losses Stratified by Industry Concentration for Equity Securities
December 31, 2025
Cost
Gross
Unrealized
Gains 		Gross
Unrealized
Losses
Fair
Value
Equity Securities by Industry Concentration:
Consumer, Non-cyclical $ 430.4 $ 222.6 $ 14.9 $ 638.1
Utilities 379.9 188.2 2.4 565.8
Industrial 213.6 314.0 4.0 523.6
Energy 137.8 105.7 - 243.5
Consumer, Cyclical 59.9 80.8 - 140.7
Financial 50.0 93.6 - 143.7
Other (includes five industry groups) 105.8 129.2 3.0 232.0
Total $ 1,377.7 $ 1,134.4 $ 24.3 $ 2,487.7
The Company's equity portfolio consists primarily of high-quality common stocks of U.S. companies with long-term records of reasonable earnings growth and steadily increasing dividends. The Company's invested asset base in equity securities, as well as the corresponding gross unrealized gains and losses, have remained relatively consistent from 2024 to 2025.
Gross Unrealized Losses Stratified by Maturity Ranges for All Fixed Income Securities
Amortized Cost Gross Unrealized Losses
December 31, 2025 All Non-Investment Grade Only All Non-
Investment
Grade Only
Maturity Ranges:
Due in one year or less $ 422.7 $ 5.9 $ 1.8 $ -
Due after one year through five years 1,102.4 40.1 26.0 0.6
Due after five years through ten years 849.6 21.7 9.3 0.8
Due after ten years 101.1 - 0.9 -
Total $ 2,476.0 $ 67.8 $ 38.1 $ 1.5
Total gross unrealized losses on all fixed income securities dropped 76.7% from 2024 to 2025. This decrease is evident across all maturity categories, with the most pronounced improvement in fixed income securities with maturities of greater than five years. This aligns with the duration profile of the portfolio, where longer-dated securities are typically more sensitive to changes in interest rates.
Actual maturities may differ from contractual maturities due to rights to call or prepay obligations.
Gross Unrealized Losses Stratified by Duration and Amount of Unrealized Losses for All Fixed Income Securities
Amount of Gross Unrealized Losses
December 31, 2025 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 Income Securities:
One to six months $ 5.3 $ - $ - $ 5.3
Seven to twelve months - - - -
More than twelve months 32.7 - - 32.7
Total $ 38.1 $ - $ - $ 38.1
In the above tables, the unrealized losses on fixed income securities are primarily deemed to reflect changes in the interest rate environment and not indicative of a deterioration of credit quality.
Age Distribution of Fixed Income Securities
December 31: 2025 2024
Maturity Ranges:
Due in one year or less 10.9 % 11.9 %
Due after one year through five years 46.6 47.9
Due after five years through ten years 38.9 37.4
Due after ten years through fifteen years 3.5 2.7
Due after fifteen years 0.1 0.1
Total 100.0 % 100.0 %
Average Maturity in Years 4.6 4.5
Duration 3.9 3.8
The slight shift to fixed income securities with longer maturities is a result of investing opportunistically with heavy consideration given to asset-liability matching. Average maturity in years provides insight into the duration profile of the fixed income portfolio by measuring the weighted-average time until principal is repaid. Average maturity remained relatively unchanged from 2024 to 2025, indicating that reinvestment activity continued to focus on securities with similar maturities.
Duration is used as a measure of bond price sensitivity to interest rate changes. A duration of 3.9 as of December 31, 2025 implies that a 100-basis point parallel increase in interest rates from current levels would result in a decline in the fair value of the fixed income investment portfolio of approximately 3.9%.
Liquidity and Capital Resources
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 and interest to the parent company is generally restricted by law or subject to approval of the insurance regulatory authorities. Based on year-end 2025 data, the maximum amount of dividends that can be paid to the parent company by its insurance and a small number of non-insurance company subsidiaries during 2026 without prior approval of appropriate regulatory authorities is approximately $984.8. The liquidity achievable through such permitted dividend payments is sufficient to cover the parent holding company's currently expected regularly recurring cash outflows represented mostly by interest, anticipated cash dividend payments to shareholders, operating expenses, and the near-term capital needs of its operations.
Old Republic's total capitalization of $7,503.9 at December 31, 2025 consisted of debt of $1,589.9 and shareholders' equity of $5,914.0. Changes in the ORI shareholders' equity account reflect primarily net operating income, realized and unrealized gains (losses), dividend payments to shareholders, and share repurchases for the year then ended. At December 31, 2025, the Company's consolidated debt to equity ratio was 26.9%. The Company has adequate sources of liquidity available to retire the Senior Notes maturing in August 2026 in the event that market conditions are not favorable to refinancing.
Old Republic has paid a regular cash dividend without interruption since 1942 (84 years), and it has raised the regular annual cash dividend for each of the past 44 years. The dividend amount is reviewed and approved by the Board of Directors quarterly and annually. In establishing each year's regular cash dividend, the Company does not follow a strict formulaic approach, and favors an increasing dividend amount largely reflective of long-term consolidated operating earnings trends. Accordingly, each year's regular dividend 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 earnings for the five to ten most recent calendar years, the amount of stock repurchases, and management's long-term expectations for the Company's consolidated business. Over the last several years, the Company has repurchased significant amounts of its outstanding shares, and the Board of Directors decided to increase regular cash dividends accordingly.
During 2025, the Company returned capital to shareholders of $1,022.2, comprised of $897.4 in dividends and $124.7 in share repurchases (3.2 million shares at an average price of $38.71 per share). Following the close of the year and through February 19, 2026, the Company repurchased 1.6 million additional shares for $66.6 (average price of $40.13), leaving $40.0 remaining under the March 1, 2024 authorization (the 2024 authorization). On August 19, 2025, the Company announced a share repurchase program authorizing the repurchase of up to an additional $750.0 in shares of the Company's common stock, which will commence immediately following the completion of the 2024 authorization, resulting in a cumulative $790.0 remaining under the current authorizations. The repurchase programs are intended to comply with Rule 10b-18 and have no expiration date, do not require the purchase of any minimum number of shares and can be suspended, modified or discontinued at any time without prior notice. Old Republic may also periodically repurchase shares pursuant to written, pre-arranged Rule 10b5-1 plans. The Company's Board of Directors also declared special cash dividends of $2.50 per share in December 2025 (paid on January 14, 2026) and $2.00 per share in December 2024 (paid on January 15, 2025). In reaching a decision to authorize the share repurchase programs and/or special dividends, the Board of Directors evaluates such factors as the current and
foreseeable liquidity and capital needs of the parent holding company and its operating companies. Capital needs are estimated based on many factors including statutory requirements of the Company's insurance company subsidiaries (largely based on risk-based capital requirements, reserves to surplus ratios, and premiums to surplus ratios), internal enterprise risk management metrics that measure balance sheet risks against the Company's risk tolerances (including various stress tests), and capital required to maintain the current rating agency ratings.
Other Assets
Substantially all of the Company's receivables are current. 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 loss costs.
Contractual Obligations
The following table shows certain information relating to the required reporting of contractual obligations as of December 31, 2025:
2026
2027 and
2028
2029 and
2030
2031 and
After
Total
Contractual Obligations:
Debt $ 550.0 $ - $ - $ 1,050.0 $ 1,600.0
Interest on Debt 69.3 96.0 96.0 593.5 854.9
Operating Leases 52.3 80.5 49.7 59.3 242.0
Loss and Loss Adjustment Reserves (a)
3,634.5 4,308.1 1,958.9 4,874.1 14,775.7
Total $ 4,306.2 $ 4,484.7 $ 2,104.7 $ 6,576.9 $ 17,472.7
__________
(a) 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.
Reinsurance Programs
In order to maintain premium production within its capacity and limit maximum losses for which it might become liable under its policies, Old Republic, as is common practice in the insurance industry, may cede a portion or all of its premiums and related liabilities on certain classes of insurance, individual policies, or blocks of business to other insurers and reinsurers.
The following table displays the Company's Specialty Insurance liabilities reinsured by its ten largest reinsurers as of December 31, 2025.
% of Total
A.M. Reinsurance Recoverable Total Consolidated
Best on Paid on Loss Exposure Reinsured
Reinsurer Rating Losses Reserves to Reinsurer Liabilities
Day One Insurance, Inc. Unrated $ - $ 1,585.4 $ 1,585.4 24.0 %
Hannover Ruckversicherungs A+ 34.7 569.6 604.4 9.2
Archway Insurance, Ltd. Unrated 2.3 596.3 598.7 9.1
Endurance Assurance Corporation A+ 14.0 304.9 319.0 4.8
Summit Insurance, Ltd. Unrated - 311.6 311.6 4.7
Munich Re America, Inc. A+ 24.6 191.0 215.6 3.3
ARU SPC, Ltd. Unrated 2.5 175.2 177.8 2.7
Partner Reinsurance Company A+ 8.2 143.9 152.2 2.3
Catalyst Insurance, Ltd.
Unrated 1.4 149.5 151.0 2.3
National WC Reinsurance Pool Industry Pool 17.8 131.9 149.8 2.3
$ 106.0 $ 4,159.8 $ 4,265.9 64.6 %
Reinsurance recoverable asset balances represent amounts due from or credited by assuming reinsurers for paid and unpaid losses and unearned premium reserves. Such reinsurance balances recoverable from nonadmitted foreign and certain other reinsurers, such as captive insurance companies owned by insureds or business producers, are substantially collateralized by irrevocable letters of credit, securities, and other financial instruments. Collateral levels for balances or credits arising from retrospectively rated, high deductible, or contractual liability policies are determined based on an insured's estimated losses, as well as a credit analysis and evaluation of financial strength. Old Republic evaluates on a regular basis the financial condition of its assuming reinsurers and insureds who purchase its retrospectively rated or high deductible policies. Allowances for estimated credit losses are recognized because reinsurance, retrospectively rated, high deductible, and contractual liability policies do not relieve Old Republic from its obligations to insureds or their beneficiaries.
Old Republic's reinsurance practices with respect to portions of its business also result from its desire to bring its sponsoring organizations and customers into some degree of joint venture or risk-sharing relationship. The Company may, in exchange for a ceding commission, reinsure up to 100% of the underwriting risk, and the premium applicable to such risk, to commercial institutions generally whose customers are insured by Old Republic, or individual customers who have formed captive insurance companies. The ceding commissions received compensate Old Republic for performing the direct insurer's functions of underwriting, actuarial, claim settlement, loss control, legal, reinsurance, and administrative services to comply with local and federal regulations, and for providing appropriate risk management services.
Remaining portions of Old Republic's business are reinsured in most instances with independent insurance or reinsurance companies pursuant to excess of loss agreements. Except as noted in the following paragraph, Specialty Insurance secures reinsurance protection on property and liability coverages to mitigate net losses above: $10.0 for workers' compensation; $8.5 for commercial auto liability; $8.5 for general liability; $9.0 for D&O; $3.4 for aviation; and $25.0 for property coverages. The majority of residential title policies issued by Title Insurance are less than $1.0. Effective January 1, 2026, given Title Insurance's increased appetite to write larger commercial title policies, reinsurance was secured to mitigate net losses above $25.0, covering all policies in force at the effective date and those subsequently issued over the term of the contract.
The Company maintains treaty and facultative reinsurance coverage for its 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. Other than the substantial concentration of workers' compensation losses caused by the September 11, 2001 terrorist attack on America, to the best of the Company's knowledge there had not been a similar accumulation of claims in a single location from a single occurrence prior to that event. Nevertheless, the possibility continues to exist that non-reinsured losses could, depending on a wide range of severity and frequency assumptions, aggregate several hundred million dollars to an insurer such as the Company. Such aggregation of losses could occur in the event of a catastrophe such as an earthquake that could lead to the death or injury of a large number of persons concentrated in a single facility such as a high-rise building.
As a result of the September 11, 2001 terrorist attack on America, the reinsurance industry eliminated coverage from substantially all contracts for claims arising from acts of terrorism. Primary insurers like the Company therefore became fully exposed to such claims. The Terrorism Risk Insurance Act (TRIA), the Terrorism Risk Insurance Revision and Extension Act (TRIREA), and the Terrorism Risk Insurance Program Reauthorization Act of 2019 (TRIPRA) were subsequently placed into law and serve as a federal reinsurance program administered by the Secretary of the Treasury. This legislation requires primary insurers to offer coverage for certified acts of terrorism under most commercial property and casualty insurance policies (excluding such coverages as commercial auto, burglary and theft, professional liability, and farmowners multi-peril insurance) and also provides for temporary reinsurance protection through December 31, 2027.
Although insurers are permitted to charge an additional premium for terrorism coverage, insureds may reject the coverage. The program's protection is not triggered for losses arising from an act of terrorism until the industry first suffers losses in excess of a prescribed aggregate deductible during any one year. The program deductible trigger was $200.0 for 2025. Once the program trigger is met, the program will be responsible for a fixed percentage of the Company's terrorism losses that exceed its deductible. The Company's deductible amounts to 20% of direct earned premium on eligible property and casualty insurance coverages. The Company currently reinsures limits on a treaty basis of $195.0 in excess of $5.0 for claims arising from certain acts of terrorism for casualty clash and catastrophe workers' compensation liability insurance coverages. The Company also purchases facultative reinsurance on certain accounts in excess of $200.0 to manage the Company's net exposures.
CRITICAL ACCOUNTING ESTIMATE - ESTABLISHMENT OF RESERVES FOR
LOSSES AND LOSS ADJUSTMENT EXPENSES
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 because 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.
Changes in estimates generally result from altered circumstances, 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 changes in estimates will have on its future financial condition or results of operations.
Old Republic believes that its most critical accounting estimate relates to the establishment of reserves for losses and loss adjustment expenses. The Company's reserves for losses and loss adjustment expenses represents the accumulation of estimates of ultimate losses payable, including those incurred but not reported (IBNR). The establishment of loss reserves is a reasonably complex and dynamic process influenced by a large variety of factors as further discussed below. Consequently, reserves established are a reflection of: the opinions of a large number of persons; the application and interpretation of historical precedent and trends; expectations as to future developments; and management's judgment in interpreting all such factors. At any point in time, the Company is exposed to the possibility of higher or lower than anticipated loss costs and the resulting changes in estimates are recorded in operations of the periods during which they are made. Increases to reserves for insured events of prior years estimates are referred to as unfavorable development, whereas any changes that decrease previous estimates of the Company's ultimate liability are referred to as favorable development.
Most of Old Republic's consolidated loss and loss adjustment expense reserves stem from its Specialty Insurance business. At December 31, 2025, such reserves accounted for 96.3% and 93.4% of consolidated gross and net of reinsurance reserves, respectively, while comparable reserves at December 31, 2024 represented 95.8% and 92.7% of the respective consolidated amounts.
The Company's reserve setting process reflects the nature of its insurance business and the operationally decentralized basis upon which it is conducted. Old Republic's Specialty Insurance operations encompass a large variety of coverages or classes of predominantly commercial insurance; it does not have a meaningful exposure to homeowners or private passenger auto insurance. Consequently, the wide variety of policies issued and commercial insurance customers served require that loss reserves be analyzed and established in the context of the unique or different attributes of each block or class of business produced by the Company. For example, accident liability claims from trucking companies or from general aviation customers become known relatively quickly, whereas claims of a general liability nature arising from the building activities of a construction company may emerge over extended periods of time. Similarly, claims filed pursuant to E&O, D&O or transactional risk liability coverages are usually not prone to immediate evaluation or quantification because such claims may be litigated over several years and their ultimate costs may be affected by judge or jury verdicts. Approximately 86% of the Specialty Insurance's loss reserves stem from liability insurance coverages for commercial customers which typically require more extended periods of investigation and at times protracted litigation before they are finally settled. As a consequence of these and other factors, Old Republic does not utilize a single, overarching loss reserving approach.
The Company prepares periodic analyses of its loss reserve estimates for its significant insurance coverages. It establishes point estimates for most losses on an insurance coverage line-by-line basis for individual subsidiaries, sub-classes, individual accounts, blocks of business or other unique concentrations of insurance risks, such as D&O liability, that have similar attributes. Actuarially or otherwise derived ranges of reserve levels are not utilized directly when setting reserves, rather actuarial modeling creates data points that inform management's estimates. Reported reserves encompass the Company's best point estimates at each reporting date and the overall reserve level at any point in time therefore represents the compilation of a very large number of reported reserve estimates and the results of a variety of formula calculations largely driven by analysis of historical data. Favorable or unfavorable developments of prior year reserves are implicitly covered by the point estimates incorporated in total reserves at each balance sheet date. The Company does not project future variability or make an explicit provision for uncertainty when determining its best estimate of loss reserves. Over the most recent decade actual incurred losses have developed within a reasonable range of their original estimates.
Aggregate loss reserves consist of estimates for claims and allocated loss adjustment expenses that have been reported (case) to the Company and reserves for claims and allocated loss adjustment expenses that have been incurred but not yet reported (IBNR) or whose ultimate costs may not become fully apparent until a future time. Additionally, the Company establishes unallocated loss adjustment expense reserves for loss settlement costs that are not directly related to individual claims. Such reserves are based on prior years' cost experience and trends and are intended to cover the unallocated costs of claim departments' administration of case and IBNR claims over time.
A large variety of statistical analyses and formula calculations are utilized to provide for IBNR claim costs as well as additional costs that can arise from such factors as monetary and social inflation, changes in claims administration processes, changes in reinsurance ceded and recoverability levels, and expected trends in claim costs and related ratios. Typically, such formulas take into account link ratios that represent prior years' patterns of incurred or paid loss trends between succeeding years, or past experience relative to progressions of the number of claims reported over time and ultimate average costs per claim.
Overall, reserves pertaining to several hundred large individual commercial insurance accounts that exhibit sufficient statistical credibility, and at times may be subject to retrospective premium rating plans or the utilization of varying levels or types of self-insured retentions through captive insurers and similar risk management mechanisms, are established on an account by account basis using case reserves and applicable formula-driven methods. Large account reserves are usually set and analyzed for groups of coverages such as workers' compensation, commercial auto, and general liability that are underwritten jointly for many customers. For certain long-tail categories of insurance such as retained or assumed excess liability or excess workers' compensation, D&O liability, and commercial umbrella liability relative to which claim development patterns are particularly long, more volatile, and immature in their early stages of development, the Company judgmentally establishes the most current accident years' loss reserves on the basis of expected loss ratios. Such expected loss ratios typically reflect currently estimated loss ratios from prior accident years, adjusted for the effect of actual and anticipated rate changes, actual and anticipated changes in coverage, reinsurance, mix of business, and other anticipated changes in external factors such as trends in loss costs or the legal and claims environment. Expected loss ratios are generally held for the two to five most recent accident years depending on the individual class or category of business. However, reserves may be increased within a holding period if the initial expected loss ratio may be inadequate. Conversely, in certain cases, reserves may be released within a holding period when the redundancies are expected to exceed the upper end of the actuarially determined range, or if an increase to an initial expected loss ratio within a hold period is subsequently deemed to be excessive. As actual claims data emerges in succeeding interim and annual periods, accident year loss ratio assumptions are validated or otherwise adjusted sequentially through the application of statistical projection techniques such as the Bornhuetter/Ferguson method, which utilizes data from the more mature experience of prior years to arrive at a likely indication of more recent years' loss trends and costs.
Title insurance and related escrow services loss and loss adjustment expense reserves are established as point estimates to cover the projected settlement costs of known as well as IBNR losses related to premium and escrow service revenues of each reporting period. Reserves for known claims are based on an assessment of the facts available to the Company during the settlement process. The point estimates covering all loss reserves take into account IBNR claims based on past experience and evaluations of such variables as changing trends in the types of policies issued, changes in real estate markets and interest rate environments, and changing levels of loan refinancing, all of which can have a bearing on the emergence, number, and ultimate costs of claims.
As discussed above, 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:
•Holding expected loss ratios for the two to five most recent accident years, particularly for 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 auto liability, general liability, E&O and D&O liability, as well as title insurance. Gross loss reserves related to such long-tail coverages ranged between 93.0% and 94.2%, and averaged 93.8% of gross consolidated loss reserves as of the three most recent year-ends. Net of reinsurance recoverables, such reserves ranged between 93.2% and 94.9% and averaged 94.0% as of the same dates.
•Loss trends that are considered when establishing the above noted expected loss 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 loss 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.
Volatility of Reserve Estimates and Sensitivity
There is a great deal of uncertainty in the estimates of loss and loss adjustment expense reserves, and unanticipated events can have both a favorable or unfavorable impact on such estimates. The Company believes that the factors most responsible, in varying and continually changing degrees, for such favorable or unfavorable development are as follows:
Specialty Insurance net loss reserves can be affected by actual experience differing from expectations related to the:
•Frequency of claims incurred but not reported;
•Effect of reserve discounts applicable to certain workers' compensation claims;
•Severity of litigated claims;
•Governmental or judicially imposed retroactive conditions in the settlement of claims such as noted elsewhere in this document in regard to black lung disease claims;
•Inflation rates applicable to repairs and the medical benefits portion of claims; and
•Emergence patterns applicable to certain types of claims such as those stemming from litigated, assumed reinsurance, or A&E claims.
Title Insurance loss reserve levels can be impacted by such developments as:
•Loan refinancing activity, the effect of which can be to change the expected period during which title policies remain exposed to loss emergence; and
•Changes in either property values or the volume of transactions which, by virtue of the speculative nature of some real estate developments, can lead to increased occurrences of fraud, defalcations or mechanics' liens.
With respect to Old Republic's small life and accident insurance operations, reserve adequacy may be impacted by:
•Medical care cost inflation;
•Frequency and severity of claims; and
•Catastrophic events where there are concentrations of insured lives.
Consolidated loss costs developed favorably in the three most recent calendar years. This development had the effect of reducing consolidated annual loss costs for the three most recent years within a range of 4.8% and 10.6%, or by an average of approximately 6.9% per year. As a percentage of each of these years' consolidated earned premiums and fees, the favorable developments have ranged between 2.2% and 4.6%, and have averaged 3.0%.
The consolidated cumulative development on prior year loss reserves over the past ten years through December 31, 2025 has ranged from 2.5% favorable to 17.4% favorable and averaged 12.5% favorable (approximately $1,046.1 based on current year ending reserves). Given the long tail associated with most of the Company's lines of business, this loss reserve development has occurred over many years. The consolidated one-year development on prior year loss reserves over the past ten years through December 31, 2025 has ranged from 0.5% favorable to 4.3% favorable and averaged 2.4% favorable (approximately $198.2 based on current year ending reserves). Management does not have a practical business reason for making projections of likely outcomes of future loss developments. Further, the analysis and evaluation of the existing business mix, the natural offset effects of the Company's diverse coverage, current aggregate loss reserve levels, and loss development patterns suggest these historical outcomes are illustrative of the reasonable likelihood of how 2025 year-end loss reserves could ultimately develop. The most significant factors impacting the potential reserve development for each of the Company's insurance segments are discussed above.
The current analysis of loss development factors and economic conditions influencing the Company's insurance coverages point to a position of reserve adequacy. In management's opinion, the other segments' loss reserve development patterns (most notably those associated with title insurance) show greater variability due to changes in economic conditions which cannot be reasonably anticipated. Consequently, management believes that using the historical outcomes presented above provides a reasonable range of cumulative and one-year reserve development for a sensitivity analysis of the Company's consolidated reserves as of December 31, 2025.
FORWARD-LOOKING STATEMENTS
Reference is here made to "Segment Information" appearing elsewhere herein.
Some of the oral or written statements made in the Company's reports, press releases, and conference calls following earnings releases, can constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally include words such as "expect," "predict," "estimate," "will," "should," "anticipate," "believe," and similar expressions. Any such forward-looking statements involve assumptions, uncertainties, and risks that may affect the Company's future performance.
Historical data pertaining to the operating results, liquidity, and other performance indicators applicable to an insurance enterprise such as Old Republic are not necessarily indicative of results to be achieved in succeeding years. In addition to the factors cited below, the long-term nature of the insurance business, seasonal and annual patterns in premium production and incidence of claims, changes in yields obtained on invested assets, changes in government policies and free markets affecting inflation rates and general economic conditions, and changes in legal precedents or the application of law affecting the settlement of disputed and other claims can have a bearing on period-to-period comparisons and future operating results.
Old Republic's Specialty Insurance segment results can be affected by the level of market competition, which is typically a function of available capital and expected returns on such capital among competitors; general economic considerations, including the levels of investment yields, inflation rates, and the impacts of tariffs; periodic changes in claim frequency and severity patterns caused by natural disasters, weather conditions, accidents, illnesses, and work-related injuries; claims development and the impact on loss reserves; adequacy and availability of reinsurance; uncertainties in underwriting and pricing risks; and unanticipated external events. Old Republic's Title Insurance segment results can be affected by similar factors, and by changes in national and regional housing demand and values, the availability and cost of mortgage loans, and employment trends. Life and accident insurance earnings can be affected by the levels of employment and consumer spending, changes in mortality and health trends, and alterations in policy lapsation rates. At the parent holding company level, operating earnings or losses are generally reflective of the amount of debt outstanding and its cost, interest income, the levels of investments held, and period-to-period variations in the costs of administering the Company's widespread operations. In addition, results could be particularly affected by technology and security breaches or failures, including cybersecurity incidents.
A more detailed listing and discussion of the risks and other factors which affect the Company's risk-taking insurance business are included in Part I, Item 1A - Risk Factors and the various risks, uncertainties, and other factors that are included from time to time in other Securities and Exchange Commission filings.
Any forward-looking statements or commentaries speak only as of their dates. Old Republic undertakes no obligation to publicly update or revise any and all such comments, whether as a result of new information, future events or otherwise, and accordingly they may not be unduly relied upon.
Old Republic International Corporation published this content on February 26, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on February 26, 2026 at 20:42 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]