Newswires
MANAGEMENT ANALYSIS OF FINANCIAL POSITION AND RESULTS OF OPERATIONS Nine Months Ended September 30, 2021 and 2020 ($ in Millions, Except Share Data) OVERVIEW
This management analysis of financial position and results of operations pertains to the consolidated accounts ofOld Republic International Corporation ("Old Republic ", "ORI", or "the Company"). The Company conducts its operations principally through three major regulatory segments, namely, its General (property and liability), Title, and the RFIG Run-off Business. A small life and accident insurance business, accounting for .2% of consolidated operating revenues for the nine months endedSeptember 30, 2021 and .5% of consolidated assets as of that date, is included within the corporate and other caption of this report. The consolidated accounts are presented in conformity with theFinancial Accounting Standards Board's ("FASB") Accounting Standards Codification ("ASC") of accounting principles generally accepted inthe United States of America ("GAAP"). As a publicly held company,Old Republic utilizes GAAP largely to comply with the financial reporting requirements of theSecurities and Exchange Commission ("SEC"). From time to time the FASB and theSEC issue various releases, many of which require additional financial statement disclosures and provide related application guidance. Recent guidance issued by the FASB is summarized further in Note 1 of the Notes to Consolidated Financial Statements. 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 theU.S. and those of a small number of other jurisdictions outside theU.S. in which they operate. In comparison with GAAP, the statutory accounting practices 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 by insurance subsidiaries to the parent holding company. The major differences between these statutory financial accounting practices and GAAP are summarized in Note 1(a) to the consolidated financial statements included inOld Republic's 2020 Annual Report on Form 10-K. The insurance business is distinguished from most others in that the prices (premiums) charged for various insurance products are set without certainty of the ultimate benefit and claim costs that will emerge, often many years after issuance and expiration of a policy. This basic fact castsOld Republic as a risk-taking enterprise managed for the long run. Management therefore conducts the business with a primary focus on achieving favorable underwriting results over cycles, and on the maintenance of financial soundness in support of the insurance subsidiaries' long-term obligations to policyholders and their beneficiaries. To achieve these objectives, adherence to insurance risk management principles is stressed, and asset diversification and quality are emphasized. In addition, management engages in an ongoing assessment of operating risks, such as cybersecurity risks, that could adversely affect the Company's business and reputation. In addition to income arising fromOld Republic's basic underwriting and related services functions, significant investment income is earned from invested funds generated by those functions and from capital resources. Investment management aims for stability of income from interest and dividends, protection of capital, and for sufficiency of liquidity to meet insurance underwriting and other obligations as they become payable in the future. Securities trading and the realization of capital gains are not primary objectives. The investment philosophy is therefore best characterized as emphasizing value, credit quality, and relatively long-term holding periods. The Company's ability to hold both fixed maturity and equity securities for long periods of time is in turn enabled by the scheduling of maturities in contemplation of an appropriate matching of assets and liabilities, and by investments in large capitalization, highly liquid equity securities. In light of the above factors, the Company's affairs are managed for the long run and without significant regard to the arbitrary strictures of quarterly or even annual reporting periods that American industry must observe. InOld Republic's view, such short reporting time frames do not comport well with the long-term nature of much of its business. Management therefore believes that the Company's operating results and financial condition can best be evaluated by observing underwriting and overall operating performance trends over succeeding five- or preferably ten-year intervals. A ten-year period in particular can likely encompass at least one economic and/or underwriting cycle and thereby provide an appropriate time frame for such cycle to run its course, and for premium rate changes and reserved claim costs to be quantified and emerge in financial results with greater finality and effect.
This management analysis should be read in conjunction with the consolidated
financial statements and the footnotes appended to them.
19 --------------------------------------------------------------------------------
EXECUTIVE SUMMARY
Old Republic International Corporation reported the following consolidated results: OVERALL RESULTS Quarters Ended September 30, Nine Months Ended September 30, 2021 2020 % Change 2021 2020 % Change Pretax income (loss)$ 106.0 $ 306.9 $ 1,132.6 $ 36.1 Pretax investment gains (losses) (192.6) 80.7 303.7 (516.7) Pretax income (loss) excluding investment gains (losses)$ 298.6 $ 226.2 32.0 %$ 828.8 $ 552.8 49.9 % Net income (loss)$ 88.7 $ 246.0 $ 907.3 $ 38.9 Net of tax investment gains (losses) (151.6) 63.7 239.6 (408.0) Net income (loss) excluding investment gains (losses)$ 240.4 $ 182.3 31.9 %$ 667.6 $ 446.9 49.4 % PER DILUTED SHARE Quarters Ended September 30, Nine Months Ended September 30, 2021 2020 % Change 2021 2020 % Change Net income (loss)$ .29 $ .83 $ 3.00 $ .13 Net of tax investment gains (losses) (.50) .21 .79 (1.37) Net income (loss) excluding investment gains (losses)$ .79 $ .62 27.4 %$ 2.21 $ 1.50 47.3 % SHAREHOLDERS' EQUITY Sept. 30, Dec. 31, 2021 2020 % Change Total$ 6,329.4 $ 6,186.6 2.3 % Per Common Share$ 20.96 $ 20.75 1.0 % Consolidated pretax income, excluding investment gains or losses continued to show strong growth in profitability in theGeneral Insurance andTitle Insurance businesses. Solid underwriting results produced consolidated combined ratios of 89.8% for the third quarter and 90.4% for the first nine months of 2021, compared to 92.3% and 94.4% in the respective 2020 periods. Total and per share year-to-date net income reflect significant increases in the fair value of equity securities by comparison to 2020 when equity markets were disrupted by the COVID-19 pandemic. Consolidated net premiums and fees earned increased 18.6% for the quarter and 21.7% for the year-to-date period.General Insurance earned premiums experienced mid-single digit growth over comparative 2020 periods, whileTitle Insurance continued to experience robust growth in premium and fee revenues as low interest rates and a favorable real estate market persisted. Net investment income increased for the quarter and declined slightly in the year-to-date period reflecting growth in the invested asset base, offset by lower investment yields, to varying degrees in both periods. Book value per share advanced to$20.96 as ofSeptember 30, 2021 from$20.75 atDecember 31, 2020 . The increase was primarily driven by year-to-date improved operating earnings and favorable overall investment valuation trends which were partially offset by dividends, including a$1.50 special dividend. As the economy continues to emerge from the pandemic, premium and fee revenues inGeneral Insurance could continue growing. As low interest rates and a favorable real estate market continue,Title Insurance premium and fee revenues could remain strong, although may be lower than recent periods. 20 --------------------------------------------------------------------------------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 primary needs of the insurance subsidiaries' underwriting and related services business. In this view, the evaluation of periodic and long-term results excludes consideration of all investment gains and (losses). Under Generally Accepted Accounting Principles (GAAP), however, net income (loss), which includes all specifically defined realized and unrealized investment gains and (losses), is the measure of total profitability. In management's opinion, the focus on income (loss) excluding all investment gains and losses provides a better way to realistically analyze, evaluate, and establish accountability for the results and benefits that arise from the basic operations of the business. The inclusion of realized investment gains and (losses) in net income (loss) can mask the reality and trends in the fundamental operating results of the insurance business. That is because their realization is, more often than not, highly discretionary. It is usually affected by the timing of individual securities sales, tax-planning considerations, and modifications of investment management judgments about the direction of securities markets or the prospects of individual investees or industry sectors. Moreover, the inclusion of unrealized investment gains and (losses) in equity securities can further distort such operating results and trends therein and thus lead to even greater period-to-period fluctuations in reported net income (loss). The impact of the continuous volatility in stock market valuations is most evident in its net of tax effect on net income (loss) for the periods reported upon. FINANCIAL HIGHLIGHTS Quarters Ended September 30, Nine Months Ended September 30, SUMMARY INCOME STATEMENTS (a): 2021 2020 % Change 2021 2020
% Change
Revenues:
Net premiums and fees earned $ 2,055.4 $ 1,732.8 18.6 % $ 5,881.6 $ 4,831.6 21.7 %
Net investment income 111.6 106.4 4.9 323.6 329.3 -1.7
Other income 37.8 31.7 19.2 112.0 98.5 13.7
Total operating revenues 2,204.9 1,871.0 17.8 6,317.3 5,259.5 20.1
Investment gains (losses):
Realized from actual transactions 6.6 1.4 15.6 12.7
Unrealized from changes in fair value
of equity securities (199.3) 79.2 288.1 (529.4)
Total investment gains (losses) (192.6) 80.7 303.7 (516.7)
Total revenues 2,012.2 1,951.7 6,621.0 4,742.8
Operating expenses:
Claim costs 618.4 638.1 -3.1 1,846.8 1,884.8
-2.0
Sales and general expenses 1,270.8 997.1 27.5 3,601.8 2,789.8
29.1
Interest and other charges 16.8 9.5 77.8 39.7 31.8
24.6
Total operating expenses 1,906.2 1,644.7 15.9 % 5,488.4 4,706.6 16.6 %
Pretax income (loss) 106.0 306.9 1,132.6 36.1
Income taxes (credits) 17.2 60.9 225.2 (2.7)
Net income (loss) $ 88.7 $ 246.0 $ 907.3 $ 38.9
COMMON STOCK STATISTICS:
Components of net income (loss) per
share:
Basic net income (loss) excluding
investment gains (losses) $ 0.79 $ 0.62 27.4 % $ 2.22 $ 1.50 48.0 %
Net investment gains (losses):
Realized from actual transactions 0.02 - 0.04 0.03
Unrealized from changes in fair value
of equity securities (0.52) 0.21 0.75 (1.40)
Basic net income (loss) $ 0.29 $ 0.83 $ 3.01 $ 0.13
Diluted net income (loss) excluding
investment gains (losses) $ 0.79 $ 0.62 27.4 % $ 2.21 $ 1.50 47.3 %
Net investment gains (losses):
Realized from actual transactions 0.02 - 0.04 0.03
Unrealized from changes in fair value
of equity securities (0.52) 0.21 0.75 (1.40)
Diluted net income (loss) $ 0.29 $ 0.83 $ 3.00 $ 0.13
Cash dividends on common stock $ 1.72 $ 0.21 $ 2.16 $ 0.63
Book value per share $ 20.96 $ 20.39 2.8 %
(a) Certain reclassification adjustments were made to increase net premiums and fees earned with a corresponding increase to sales and general expenses in the quarter
and first nine months ended
Management believes the information in sections A to G and J of the table on the
following page highlight the most meaningful, realistic indicators of ORI's
segmented and consolidated financial performance. The information underscores
the necessity of reviewing reported results by separating the inherent
volatility of securities markets and their above-noted impact on reported net
income (loss).
21
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Major
Segmented and Consolidated Elements of Income (Loss)
Quarters Ended September 30, Nine Months Ended September 30,
2021 2020 % Change 2021 2020 % Change
A. Net premiums, fees, and other
income (c):
General insurance $ 902.8 $ 861.9 4.7 % $ 2,629.2 $ 2,532.8 3.8 %
Title insurance 1,142.1 857.0 33.3 3,218.7 2,254.5 42.8
Corporate and other 2.6 2.9 -9.0 8.2 9.0 -9.2
Other income 37.8 31.7 19.2 112.0 98.5 13.7
Subtotal 2,085.5 1,753.7 18.9 5,968.1 4,895.0 21.9
RFIG run-off business 7.7 10.8 -28.8 25.4 35.1 -27.5
Consolidated $ 2,093.2 $ 1,764.6 18.6 % $ 5,993.6 $ 4,930.2 21.6 %
B. Underwriting and related services income (loss):
General insurance $ 77.7$ 38.7 100.7 %$ 202.0 $ 89.5 125.6 % Title insurance 125.3 93.2 34.4 347.8 182.3 90.8 Corporate and other (4.9) (3.7) -31.9 (17.1) (12.6) -35.0 Subtotal 198.0 128.2 54.5 532.7 259.2 105.5 RFIG run-off business 5.8 1.1 N/M 12.1 (3.7) N/M Consolidated$ 203.9 $ 129.3 57.7 %$ 544.9 $ 255.4 113.4 % C. Consolidated underwriting ratio (c): Claim ratio: Current year 32.4 % 38.2 % 33.4 % 39.9 % Prior years (2.3) (1.4) (2.0) (.9) Total 30.1 36.8 31.4 39.0 Expense ratio 59.7 55.5 59.0 55.4 Combined ratio 89.8 % 92.3 % 90.4 % 94.4 % D. Net investment income: General insurance $ 84.2$ 85.9 -1.9 %$ 256.2 $ 264.2 -3.0 % Title insurance 10.9 10.2 6.6 32.5 31.4 3.5 Corporate and other 13.8 6.8 103.5 26.1 21.8 19.5 Subtotal 109.0 102.9 5.9 314.8 317.5 -0.8 RFIG run-off business 2.6 3.4 -24.6 8.7 11.8 -25.9 Consolidated$ 111.6 $ 106.4 4.9 %$ 323.6 $ 329.3 -1.7 % E. Interest and other charges (credits): General insurance $ 16.1$ 14.8 $ 48.2$ 48.7 Title insurance 0.4 0.3 1.9 1.8 Corporate and other (a) 0.2 (5.7) (10.5) (18.7) Subtotal 16.8 9.5 39.7 31.8 RFIG run-off business - - - - Consolidated $ 16.8$ 9.5 77.8 % $ 39.7$ 31.8 24.6 % F. Segmented and consolidated pretax income (loss) excluding investment gains (losses)(B+D-E): General insurance$ 145.8 $ 109.7 32.8 %$ 410.0 $ 305.1 34.4 % Title insurance 135.7 103.1 31.7 378.3 211.9 78.6 Corporate and other 8.6 8.7 -1.3 19.5 27.8 -30.0 Subtotal 290.2 221.6 30.9 807.9 544.8 48.3 RFIG run-off business 8.4 4.5 83.9 20.9 8.0 160.7 Consolidated 298.6 226.2 32.0 % 828.8 552.8 49.9 % Income taxes (credits) on above (b) 58.2 43.9 161.1 105.9G. Net income (loss) excluding investment gains (losses) 240.4 182.3 31.9 % 667.6 446.9 49.4 % H. Consolidated pretax investment gains (losses): Realized from actual transactions 6.6 1.4 15.6 12.7 Unrealized from changes in fair value of equity securities (199.3) 79.2 288.1 (529.4) Total (192.6) 80.7 303.7 (516.7) Income taxes (credits) on above (40.9) 16.9 64.0 (108.7) Net of tax investment gains (losses) (151.6) 63.7 239.6 (408.0) I. Net income (loss) $ 88.7$ 246.0 $ 907.3 $ 38.9 J. Consolidated operating cash flow$ 455.1 $ 370.6 $ 970.6 $ 808.9 (a) Includes consolidation/elimination entries. (b) The effective tax rates applicable to pretax income excluding investment gains and (losses) were 19.5% and 19.4% for the third quarter and first nine months of 2021, respectively, and 19.4% and 19.2% for the third quarter and first nine months of 2020, respectively. (c) Certain reclassification adjustments were made to increase net premiums and fees earned with a corresponding increase to sales and general expenses in the quarter and first nine months endedSeptember 30, 2020 to conform the prior period to the current presentation. See Note (a) in Title Insurance Segment results. 22 --------------------------------------------------------------------------------
General Insurance Segment Results
General Insurance Summary Operating Results
Quarters Ended September 30, Nine Months Ended September 30,
2021 2020 % Change 2021 2020 % Change
Net premiums written $ 972.8 $ 932.5 4.3 % $ 2,742.3 $ 2,586.0 6.0 %
Net premiums earned 902.8 861.9 4.7 2,629.2 2,532.8 3.8
Net investment income 84.2 85.9 -1.9 256.2 264.2 -3.0
Other income 37.5 31.4 19.3 111.2 97.8 13.6
Operating revenues 1,024.6 979.3 4.6 2,996.7 2,895.0 3.5
Claim costs 585.4 607.5 -3.6 1,743.4 1,790.4 -2.6
Sales and general expenses 277.1 247.2 12.1 794.9 750.7 5.9
Interest and other charges 16.1 14.8 8.9 48.2 48.7 -1.0
Operating expenses 878.8 869.5 1.1 2,586.6 2,589.9 -0.1
Segment pretax operating income
(loss) $ 145.8 $ 109.7 32.8 % $ 410.0 $ 305.1 34.4 %
Claim ratio 64.8 % 70.5 % 66.3 % 70.7 %
Expense ratio 26.5 25.0 26.0 25.8
Combined ratio 91.3 % 95.5 % 92.3 % 96.5 %
General Insurance net premiums earned increased 4.7% and 3.8% for the third
quarter and year-to-date periods, respectively. Strong premium rate increases
for most lines of coverage other than workers' compensation, and new business
production continued. Rising premiums in commercial auto, financial indemnity
and property coverages more than offset the decline in workers' compensation and
general liability premiums. Net investment income decreased in both 2021 periods
reflecting a growing invested asset base, more than offset by lower investment
yields.
The General Insurance reported claim ratio improved in both 2021 periods,
influenced by favorable reserve development from prior periods and a lower
current period claim provision, reflecting several years of premium rate
increases and underwriting actions. The year-to-date expense ratio remained
relatively consistent with the prior year, generally reflecting variability of
sales and general expenses within the line of coverage mix, while the third
quarter 2021 expense ratio was somewhat elevated due to fluctuating levels of
operating expense accruals.
Together, these factors produced significantly greater pretax operating income
for the periods reported.
The following table shows recent annual and interim periods' claim ratios and
the effects of claim development trends:
Effect of Prior Periods'
(Favorable)/ Claim Ratio Excluding
Reported Unfavorable Claim Prior Periods' Claim
Claim Ratio Reserves Development Reserves Development
2016 73.0 % 0.3 % 72.7 %
2017 71.8 0.7 71.1
2018 72.2 - 72.2
2019 71.8 0.4 71.4
2020 69.9 % (0.8) % 70.7 %
3rd Quarter 2020 70.5 % (0.8) % 71.3 %
3rd Quarter 2021 64.8 % (3.2) % 68.0 %
1st Nine Months 2020 70.7 % (0.5) % 71.2 %
1st Nine Months 2021 66.3 % (2.9) % 69.2 %
Quarterly and annual claim ratios and trends may not be particularly meaningful
indicators of future outcomes for a liability-oriented mix of business with
relatively long claim payment patterns. Assuming the current line of coverage
mix, management's targets are claim ratio averages in the high 60% to low 70%
range, expense ratio averages of 25% or below, and a combined ratio between 90%
and 95%.
23
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Title Insurance Segment Results
Title Insurance Summary Operating Results
Quarters Ended September 30, Nine Months Ended September 30,
2021 2020 % Change 2021 2020 % Change
Net premiums and fees earned (a) $ 1,142.1 $ 857.0 33.3 % $ 3,218.7 $ 2,254.5 42.8 %
Net investment income 10.9 10.2 6.6 32.5 31.4 3.5
Other income 0.3 0.3 1.1 0.8 0.6 22.6
Operating revenues 1,153.3 867.6 32.9 3,252.0 2,286.6 42.2
Claim costs 32.9 21.7 51.3 95.4 61.1 56.1
Sales and general expenses (a) 984.1 742.3 32.6 2,776.3 2,011.8 38.0
Interest and other charges 0.4 0.3 29.3 1.9 1.8 7.8
Operating expenses 1,017.6 764.5 33.1 2,873.7 2,074.7 38.5
Segment pretax operating income
(loss) $ 135.7 $ 103.1 31.7 % $ 378.3 $ 211.9 78.6 %
Claim ratio 2.9 % 2.5 % 3.0 % 2.7 %
Expense ratio 86.1 86.6 86.2 89.2
Combined ratio 89.0 % 89.1 % 89.2 % 91.9 %
________
(a) Certain reclassification adjustments were made to increase net premiums and
fees earned with a corresponding increase to sales and general expenses of $67.9
and $186.8 in the quarter and nine months ended September 30, 2020 . These
adjustments were made to conform the prior period to the current presentation to
reflect such revenues gross of applicable commission expense and had no impact
on segmented pretax operating income (loss).
Title Insurance net premiums and fees earned increased by 33.3% in the third
quarter and by nearly 43% for the year-to-date period, with strong results
generated from both agency and direct production channels. This performance was
driven by a continued low interest rate environment and a robust real estate
market, with increases in purchase transactions partially offset by a decline in
refinance levels. Net investment income increased in both 2021 periods
reflecting a growing invested asset base, somewhat offset by lower investment
yields.
The Title Insurance reported claim ratio was higher for the quarter and
year-to-date periods, influenced somewhat by less favorable reserve development
from prior periods. The expense ratio improved over the prior year's third
quarter and first nine months from greater leverage of the expense structure on
significantly higher premium and fee volume.
Together, these factors produced significantly greater pretax operating income
for the periods reported.
The following table shows recent annual and interim periods' claim ratios and
the effects of claim development trends:
Effect of Prior Periods'
(Favorable)/ Claim Ratio Excluding
Reported Unfavorable Claim Prior Periods' Claim
Claim Ratio Reserves Development Reserves Development
2016 3.5 % (1.0) % 4.5 %
2017 0.8 (3.0) 3.8
2018 1.9 (1.8) 3.7
2019 2.5 (1.2) 3.7
2020 2.3 % (1.3) % 3.6 %
3rd Quarter 2020 2.5 % (1.0) % 3.5 %
3rd Quarter 2021 2.9 % (0.8) % 3.7 %
1st Nine Months 2020 2.7 % (0.8) % 3.5 %
1st Nine Months 2021 3.0 % (0.7) % 3.7 %
24
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RFIG Run-off Segment Results
RFIG
Run-off Summary Operating Results
Quarters Ended September 30, Nine Months Ended September 30,
2021 2020 % Change 2021 2020 % Change
Mortgage Insurance (MI)
Net premiums earned $ 7.7 $ 10.8 -28.8 % $ 25.4 $ 35.1 -27.5 %
Net investment income 2.6 3.4 -24.6 8.7 11.8 -25.9
Claim costs (1.1) 6.7 -116.5 3.4 28.4 -87.7
MI pretax operating income (loss) $ 8.4 $ 4.5 83.9 % $ 20.9 $ 8.0 160.7 %
Claim ratio -14.5 % 62.4 % 13.7 % 80.8 %
Expense ratio 39.0 27.2 38.5 29.9
Combined ratio 24.5 % 89.6 % 52.2 % 110.7 %
Pretax operating results of RFIG Run-off reflect the continuing drop in net
earned premiums in line with the declining risk in force and significantly lower
claim costs in comparison to 2020 periods. Net investment income decreased in
both 2021 periods from a declining invested asset base and lower investment
yields. Claim costs reflect fewer newly reported delinquencies along with
improving trends in cure rates and claim severity influenced by the ongoing
economic recovery and continued strength in the real estate market.
Together, these factors produced significantly greater pretax operating income
for the periods reported.
The following table shows recent annual and interim periods' claim ratios and
the effects of claim development trends:
Effect of Prior Periods'
(Favorable)/ Claim Ratio Excluding
Reported Unfavorable Claim Prior Periods' Claim
Claim Ratio Reserves Development Reserves Development
2016 34.1 % (39.8) % 73.9 %
2017 57.6 (38.3) 95.9
2018 43.2 (27.0) 70.2
2019 55.0 (12.5) 67.5
2020 81.7 % (26.5) % 108.2 %
3rd Quarter 2020 62.4 % (77.8) % 140.2 %
3rd Quarter 2021 (14.5) % (106.3) % 91.8 %
1st Nine Months 2020 80.8 % (22.3) % 103.1 %
1st Nine Months 2021 13.7 % (47.7) % 61.4 %
25
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Corporate and Other Operating Results
Corporate and Other Summary Operating Results
Quarters Ended September 30, Nine Months Ended September 30,
2021 2020 % Change 2021 2020 % Change
Net life and accident premiums
earned $ 2.6 $ 2.9 -9.0 % $ 8.2 $ 9.0 -9.2 %
Net investment income 13.8 6.8 103.5 26.1 21.8 19.5
Other operating income - - - - - -
Operating revenues 16.5 9.7 69.9 34.3 30.8 11.2
Claim costs 1.1 2.0 -45.4 4.5 4.9 -8.0
Insurance expenses 0.8 0.9 -16.5 2.6 3.3 -19.7
Corporate, interest and other
expenses - net 5.9 (2.0) N/M 7.5 (5.2) 243.1
Operating expenses 7.8 0.9 N/M 14.8 3.0 N/M
Corporate and other pretax
operating income (loss) $ 8.6 $ 8.7 -1.3 % $ 19.5 $ 27.8 -30.0 %
This segment includes the combination of a small life and accident insurance
business and the net costs associated with the parent holding company and its
internal corporate services subsidiaries. The segment tends to produce highly
variable results stemming from volatility inherent from the lack of scale.
Interest expense increased related to the issuance of $650 million of debt late
in the second quarter. This increase was largely offset by net investment income
from the investment of the proceeds.
AMERICAN INTERNATIONAL GROUP, INC. – 10-Q – | Management's Discussion and Analysis of Financial Condition and Results of Operations
AM Best Affirms Credit Ratings of Wawanesa General Insurance Company and Wawanesa Life Insurance Company
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