OLD REPUBLIC REPORTS RESULTS FOR THE FOURTH QUARTER AND FULL YEAR 2022
OVERALL RESULTS |
||||||||||||
Quarters Ended |
Years Ended |
|||||||||||
2022 |
2021 |
% Change |
2022 |
2021 |
% Change |
|||||||
Pretax income |
$ 649.0 |
|
$ 857.4 |
|
||||||||
Pretax investment gains (losses) |
348.3 |
454.3 |
(201.1) |
758.0 |
||||||||
Pretax income excluding investment gains (losses) |
$ 300.6 |
|
(10.3) % |
|
|
(9.1) % |
||||||
Net income |
$ 512.1 |
|
$ 686.4 |
|
||||||||
Net of tax investment gains (losses) |
275.2 |
358.8 |
(158.6) |
598.4 |
||||||||
Net income excluding investment gains (losses) |
$ 236.9 |
|
(11.7) % |
$ 845.1 |
$ 935.9 |
(9.7) % |
||||||
Combined ratio |
89.6 % |
88.5 % |
91.0 % |
89.9 % |
||||||||
PER DILUTED SHARE |
||||||||||||
Quarters Ended |
Years Ended |
|||||||||||
2022 |
2021 |
% Change |
2022 |
2021 |
% Change |
|||||||
Net income |
$ 1.73 |
$ 2.06 |
$ 2.26 |
$ 5.05 |
||||||||
Net of tax investment gains (losses) |
0.93 |
1.18 |
(0.53) |
1.97 |
||||||||
Net income excluding investment gains (losses) |
$ 0.80 |
$ 0.88 |
(9.1) % |
$ 2.79 |
$ 3.08 |
(9.4) % |
||||||
SHAREHOLDERS' EQUITY (BOOK VALUE) |
||||||||||||
|
|
|||||||||||
2022 |
2021 |
% Change |
||||||||||
Total |
|
|
(10.5) % |
|||||||||
Per Common Share |
$ 21.05 |
$ 22.76 |
(7.5) % |
________ |
All amounts in this report are stated in millions except where noted, common stock data and percentages. |
Consolidated net premiums and fees earned were down 13.7% for the quarter, with
During the quarter, the Company returned total capital to shareholders of
Book value per share was
In management's opinion, the focus on income excluding investment gains (losses), also described herein as segment pretax operating 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.
FINANCIAL HIGHLIGHTS |
|||||||||||||
Quarters Ended |
Years Ended |
||||||||||||
SUMMARY INCOME STATEMENTS: |
2022 |
2021 |
% Change |
2022 |
2021 |
% Change |
|||||||
Revenues: |
|||||||||||||
Net premiums and fees earned |
$ 1,830.6 |
$ 2,121.9 |
(13.7) % |
$ 7,675.3 |
$ 8,003.6 |
(4.1) % |
|||||||
Net investment income |
130.2 |
110.6 |
17.7 |
459.5 |
434.3 |
5.8 |
|||||||
Other income |
36.2 |
33.6 |
7.7 |
149.9 |
145.6 |
3.0 |
|||||||
Total operating revenues |
1,997.2 |
2,266.2 |
(11.9) |
8,284.9 |
8,583.5 |
(3.5) |
|||||||
Investment gains (losses): |
|||||||||||||
Realized from actual transactions and impairments |
(30.0) |
(8.6) |
62.2 |
6.9 |
|||||||||
Unrealized from changes in fair value of equity securities |
378.4 |
463.0 |
(263.4) |
751.1 |
|||||||||
Total investment gains (losses) |
348.3 |
454.3 |
(201.1) |
758.0 |
|||||||||
Total revenues |
2,345.5 |
2,720.5 |
8,083.7 |
9,341.6 |
|||||||||
Operating expenses: |
|||||||||||||
Loss and loss adjustment expenses |
565.0 |
574.1 |
(1.6) |
2,440.2 |
2,420.9 |
0.8 |
|||||||
Sales and general expenses |
1,114.7 |
1,340.4 |
(16.8) |
4,719.2 |
4,942.3 |
(4.5) |
|||||||
Interest and other charges |
16.8 |
16.5 |
1.8 |
66.7 |
56.2 |
18.7 |
|||||||
Total operating expenses |
1,696.5 |
1,931.0 |
(12.1) % |
7,226.3 |
7,419.5 |
(2.6) % |
|||||||
Pretax income |
649.0 |
789.4 |
857.4 |
1,922.1 |
|||||||||
Income taxes |
136.8 |
162.4 |
170.9 |
387.7 |
|||||||||
Net income |
$ 512.1 |
$ 627.0 |
$ 686.4 |
$ 1,534.3 |
|||||||||
COMMON STOCK STATISTICS: |
|||||||||||||
Components of net income per share: |
|||||||||||||
Basic net income excluding investment gains (losses) |
$ 0.80 |
$ 0.88 |
(9.1) % |
$ 2.80 |
$ 3.10 |
(9.7) % |
|||||||
Net investment gains (losses): |
|||||||||||||
Realized from actual transactions and impairments |
(0.08) |
(0.02) |
0.17 |
0.02 |
|||||||||
Unrealized from changes in fair value of equity securities |
1.02 |
1.21 |
(0.69) |
1.96 |
|||||||||
Basic net income |
$ 1.74 |
$ 2.07 |
$ 2.28 |
$ 5.08 |
|||||||||
Diluted net income excluding investment gains (losses) |
$ 0.80 |
$ 0.88 |
(9.1) % |
$ 2.79 |
$ 3.08 |
(9.4) % |
|||||||
Net investment gains (losses): |
|||||||||||||
Realized from actual transactions and impairments |
(0.08) |
(0.02) |
0.16 |
0.02 |
|||||||||
Unrealized from changes in fair value of equity securities |
1.01 |
1.20 |
(0.69) |
1.95 |
|||||||||
Diluted net income |
$ 1.73 |
$ 2.06 |
$ 2.26 |
$ 5.05 |
|||||||||
Cash dividends on common stock |
$ 0.23 |
$ 0.22 |
$ 1.92 |
$ 2.38 |
|||||||||
Book value per share |
$ 21.05 |
$ 22.76 |
(7.5) % |
||||||||||
We believe the information presented in the following table highlights the most meaningful indicators of ORI's segmented and consolidated financial performance. The information underscores the performance of our underwriting operations, as well as our sound investment of the capital and underwriting cash flows from these operations.
Sources of Consolidated Income |
|||||||||||
Quarters Ended |
Years Ended |
||||||||||
2022 |
2021 |
% Change |
2022 |
2021 |
% Change |
||||||
Net premiums and fees earned: |
|||||||||||
General insurance |
$ 986.7 |
$ 926.3 |
6.5 % |
|
|
7.1 % |
|||||
Title insurance |
836.4 |
1,185.6 |
(29.4) |
3,833.8 |
4,404.3 |
(13.0) |
|||||
RFIG run-off |
5.0 |
7.1 |
(29.4) |
23.2 |
32.6 |
(28.9) |
|||||
Corporate & other |
2.3 |
2.7 |
(14.2) |
9.6 |
11.0 |
(12.3) |
|||||
Consolidated |
|
|
(13.7) % |
|
|
(4.1) % |
|||||
Underwriting and related services income (loss): |
|||||||||||
General insurance |
$ 157.3 |
$ 109.4 |
43.8 % |
$ 400.9 |
$ 311.4 |
28.7 % |
|||||
Title insurance |
31.2 |
126.2 |
(75.2) |
261.3 |
474.0 |
(44.9) |
|||||
RFIG run-off |
2.3 |
9.1 |
(74.2) |
28.4 |
21.3 |
33.3 |
|||||
Corporate & other |
(3.7) |
(3.8) |
0.5 |
(24.9) |
(20.9) |
(19.3) |
|||||
Consolidated |
$ 187.1 |
$ 241.0 |
(22.3) % |
$ 665.8 |
$ 785.9 |
(15.3) % |
|||||
Consolidated underwriting ratio: |
|||||||||||
Loss ratio: |
|||||||||||
Current year |
38.3 % |
31.7 % |
35.5 % |
32.9 % |
|||||||
Prior years |
(7.4) |
(4.6) |
(3.7) |
(2.7) |
|||||||
Total |
30.9 |
27.1 |
31.8 |
30.2 |
|||||||
Expense ratio |
58.7 |
61.4 |
59.2 |
59.7 |
|||||||
Combined ratio |
89.6 % |
88.5 % |
91.0 % |
89.9 % |
|||||||
Net investment income: |
|||||||||||
General insurance |
$ 103.1 |
$ 86.1 |
19.7 % |
$ 358.0 |
$ 342.4 |
4.5 % |
|||||
Title insurance |
13.6 |
11.3 |
20.8 |
47.9 |
43.8 |
9.4 |
|||||
RFIG run-off |
1.5 |
2.7 |
(44.0) |
6.7 |
11.4 |
(41.1) |
|||||
Corporate & other |
11.9 |
10.4 |
14.5 |
46.8 |
36.5 |
28.1 |
|||||
Consolidated |
$ 130.2 |
$ 110.6 |
17.7 % |
$ 459.5 |
$ 434.3 |
5.8 % |
|||||
Interest and other charges (credits): |
|||||||||||
General insurance |
$ 18.8 |
$ 15.9 |
$ 69.1 |
$ 64.2 |
|||||||
Title insurance |
— |
0.2 |
0.4 |
2.1 |
|||||||
RFIG run-off |
— |
— |
— |
— |
|||||||
Corporate & other (a) |
(1.9) |
0.3 |
(2.8) |
(10.1) |
|||||||
Consolidated |
$ 16.8 |
$ 16.5 |
1.8 % |
$ 66.7 |
$ 56.2 |
18.7 % |
|||||
Segmented and consolidated pretax income |
|||||||||||
excluding investment gains (losses): |
|||||||||||
General insurance |
$ 241.6 |
$ 179.6 |
34.6 % |
$ 689.8 |
$ 589.6 |
17.0 % |
|||||
Title insurance |
45.0 |
137.3 |
(67.2) |
308.8 |
515.7 |
(40.1) |
|||||
RFIG run-off |
3.9 |
11.9 |
(67.2) |
35.2 |
32.8 |
7.3 |
|||||
Corporate & other |
10.0 |
6.2 |
60.2 |
24.6 |
25.7 |
(4.3) |
|||||
Consolidated |
300.6 |
335.1 |
(10.3) % |
1,058.6 |
1,164.0 |
(9.1) % |
|||||
Income taxes on above |
63.7 |
66.9 |
213.4 |
228.1 |
|||||||
Net income excluding investment |
|||||||||||
gains (losses) |
236.9 |
268.2 |
(11.7) % |
845.1 |
935.9 |
(9.7) % |
|||||
Consolidated pretax investment gains (losses): |
|||||||||||
Realized from actual transactions |
|||||||||||
and impairments |
(30.0) |
(8.6) |
62.2 |
6.9 |
|||||||
Unrealized from changes in |
|||||||||||
fair value of equity securities |
378.4 |
463.0 |
(263.4) |
751.1 |
|||||||
Total |
348.3 |
454.3 |
(201.1) |
758.0 |
|||||||
Income taxes (credits) on above |
73.1 |
95.5 |
(42.5) |
159.6 |
|||||||
Net of tax investment gains (losses) |
275.2 |
358.8 |
(158.6) |
598.4 |
|||||||
Net income |
$ 512.1 |
$ 627.0 |
$ 686.4 |
|
|||||||
Consolidated operating cash flow |
$ 267.2 |
$ 341.1 |
|
|
|||||||
(a) Includes consolidation/elimination entries. |
General Insurance Segment Operating Results |
|||||||||||
Quarters Ended |
Years Ended |
||||||||||
2022 |
2021 |
% Change |
2022 |
2021 |
% Change |
||||||
Net premiums written |
$ 948.7 |
$ 938.6 |
1.1 % |
|
|
8.1 % |
|||||
Net premiums earned |
986.7 |
926.3 |
6.5 |
3,808.6 |
3,555.5 |
7.1 |
|||||
Net investment income |
103.1 |
86.1 |
19.7 |
358.0 |
342.4 |
4.5 |
|||||
Other income |
36.0 |
33.3 |
8.1 |
148.9 |
144.5 |
3.1 |
|||||
Operating revenues |
1,125.9 |
1,045.8 |
7.7 |
4,315.6 |
4,042.5 |
6.8 |
|||||
Loss and loss adjustment expenses |
559.6 |
559.7 |
— |
2,364.6 |
2,303.1 |
2.7 |
|||||
Sales and general expenses |
305.8 |
290.5 |
5.3 |
1,192.0 |
1,085.4 |
9.8 |
|||||
Interest and other charges |
18.8 |
15.9 |
17.7 |
69.1 |
64.2 |
7.7 |
|||||
Operating expenses |
884.2 |
866.2 |
2.1 |
3,625.8 |
3,452.8 |
5.0 |
|||||
Segment pretax operating income |
$ 241.6 |
$ 179.6 |
34.6 % |
$ 689.8 |
$ 589.6 |
17.0 % |
|||||
Loss ratio: |
|||||||||||
Current year |
66.9 % |
67.0 % |
67.2 % |
68.6 % |
|||||||
Prior years |
(10.2) |
(6.6) |
(5.1) |
(3.8) |
|||||||
Total |
56.7 |
60.4 |
62.1 |
64.8 |
|||||||
Expense ratio |
27.3 |
27.8 |
27.4 |
26.5 |
|||||||
Combined ratio |
84.0 % |
88.2 % |
89.5 % |
91.3 % |
The reported loss ratio for
The fourth quarter and full year expense ratios generally reflect the shift in line of coverage mix. Investments in new products and geographies in recent years have diversified the
Together, these factors produced highly profitable combined ratios and greater pretax operating income for the periods reported. For
The following table shows recent annual and interim periods' loss ratios and the effects of loss development trends:
Effect of Prior Periods' |
|||||||||||
(Favorable)/ |
Loss Ratio Excluding |
||||||||||
Reported |
Unfavorable Loss |
Prior Periods' Loss |
|||||||||
Loss Ratio |
|
|
|||||||||
2018 |
72.2 % |
— % |
72.2 % |
||||||||
2019 |
71.8 |
0.4 |
71.4 |
||||||||
2020 |
69.9 |
(0.8) |
70.7 |
||||||||
2021 |
64.8 |
(3.8) |
68.6 |
||||||||
2022 |
62.1 % |
(5.1) % |
67.2 % |
||||||||
4th Quarter 2021 |
60.4 % |
(6.6) % |
67.0 % |
||||||||
4th Quarter 2022 |
56.7 % |
(10.2) % |
66.9 % |
Title Insurance Segment Operating Results |
|||||||||||
Quarters Ended |
Years Ended |
||||||||||
2022 |
2021 |
% Change |
2022 |
2021 |
% Change |
||||||
Net premiums and fees earned |
$ 836.4 |
|
(29.4) % |
|
|
(13.0) % |
|||||
Net investment income |
13.6 |
11.3 |
20.8 |
47.9 |
43.8 |
9.4 |
|||||
Other income |
0.1 |
0.2 |
(36.6) |
0.9 |
1.1 |
(18.2) |
|||||
Operating revenues |
850.3 |
1,197.2 |
(29.0) |
3,882.7 |
4,449.3 |
(12.7) |
|||||
Loss and loss adjustment expenses |
4.4 |
17.5 |
(74.6) |
89.1 |
112.9 |
(21.1) |
|||||
Sales and general expenses |
800.9 |
1,042.1 |
(23.1) |
3,484.2 |
3,818.4 |
(8.8) |
|||||
Interest and other charges |
— |
0.2 |
(146.9) |
0.4 |
2.1 |
(80.2) |
|||||
Operating expenses |
805.3 |
1,059.8 |
(24.0) |
3,573.8 |
3,933.5 |
(9.1) |
|||||
Segment pretax operating income |
$ 45.0 |
$ 137.3 |
(67.2) % |
$ 308.8 |
$ 515.7 |
(40.1) % |
|||||
Loss ratio: |
|||||||||||
Current year |
3.8 % |
3.6 % |
3.6 % |
3.6 % |
|||||||
Prior years |
(3.3) |
(2.1) |
(1.3) |
(1.0) |
|||||||
Total |
0.5 |
1.5 |
2.3 |
2.6 |
|||||||
Expense ratio |
95.7 |
87.9 |
90.9 |
86.7 |
|||||||
Combined ratio |
96.2 % |
89.4 % |
93.2 % |
89.3 % |
Together, these factors produced profitable combined ratios albeit lower pretax operating income for the periods reported.
The following table shows recent annual and interim periods' loss ratios and the effects of loss development trends:
Effect of Prior Periods' |
|||||||||||
(Favorable)/ |
Loss Ratio Excluding |
||||||||||
Reported |
Unfavorable Loss |
Prior Periods' Loss |
|||||||||
Loss Ratio |
|
|
|||||||||
2018 |
1.9 % |
(1.8) % |
3.7 % |
||||||||
2019 |
2.5 |
(1.2) |
3.7 |
||||||||
2020 |
2.3 |
(1.3) |
3.6 |
||||||||
2021 |
2.6 |
(1.0) |
3.6 |
||||||||
2022 |
2.3 % |
(1.3) % |
3.6 % |
||||||||
4th Quarter 2021 |
1.5 % |
(2.1) % |
3.6 % |
||||||||
4th Quarter 2022 |
0.5 % |
(3.3) % |
3.8 % |
RFIG Run-off Segment Operating Results - |
|||||||||||
Quarters Ended |
Years Ended |
||||||||||
2022 |
2021 |
% Change |
2022 |
2021 |
% Change |
||||||
Net premiums earned |
$ 5.0 |
$ 7.1 |
(29.4) % |
$ 23.2 |
$ 32.6 |
(28.9) % |
|||||
Net investment income |
1.5 |
2.7 |
(44.0) |
6.7 |
11.4 |
(41.1) |
|||||
Loss and loss adjustment expenses |
— |
(5.2) |
N/M |
(17.5) |
(1.7) |
N/M |
|||||
Pretax operating income |
$ 3.9 |
$ 11.9 |
(67.2) % |
$ 35.2 |
$ 32.8 |
7.3 % |
|||||
Loss ratio: |
|||||||||||
Current year |
107.6 % |
64.9 % |
80.8 % |
62.2 % |
|||||||
Prior years |
(108.2) |
(137.4) |
(156.3) |
(67.5) |
|||||||
Total |
(0.6) |
(72.5) |
(75.5) |
(5.3) |
|||||||
Expense ratio |
54.0 |
44.9 |
53.0 |
39.9 |
|||||||
Combined ratio |
53.4 % |
(27.6) % |
(22.5) % |
34.6 % |
Pretax operating results of RFIG Run-off reflect the continuing drop in net earned premiums in line with the declining risk in force. This quarter, higher current year loss costs and lower favorable reserve development from prior years resulted from moderation in cure trends and increasing claim severity. For the year, favorable reserve development was the primary driver of the reduction in loss costs. Net investment income decreased in both 2022 periods, reflecting a declining invested asset base, driven by the payment of extraordinary dividends of
The following table shows recent annual and interim periods' loss ratios and the effects of loss development trends:
Effect of Prior Periods' |
|||||||||||
(Favorable)/ |
Loss Ratio Excluding |
||||||||||
Reported |
Unfavorable Loss |
Prior Periods' Loss |
|||||||||
Loss Ratio |
|
|
|||||||||
2018 |
43.2 % |
(27.0) % |
70.2 % |
||||||||
2019 |
55.0 |
(12.5) |
67.5 |
||||||||
2020 |
81.7 |
(26.5) |
108.2 |
||||||||
2021 |
(5.3) |
(67.5) |
62.2 |
||||||||
2022 |
(75.5) % |
(156.3) % |
80.8 % |
||||||||
4th Quarter 2021 |
(72.5) % |
(137.4) % |
64.9 % |
||||||||
4th Quarter 2022 |
(0.6) % |
(108.2) % |
107.6 % |
Corporate & Other Operating Results |
||||||||||||
Quarters Ended |
Years Ended |
|||||||||||
2022 |
2021 |
% Change |
2022 |
2021 |
% Change |
|||||||
Net life and accident premiums earned |
$ 2.3 |
$ 2.7 |
(14.2) % |
$ 9.6 |
$ 11.0 |
(12.3) % |
||||||
Net investment income |
11.9 |
10.4 |
14.5 |
46.8 |
36.5 |
28.1 |
||||||
Other operating income |
— |
— |
— |
— |
— |
— |
||||||
Operating revenues |
14.3 |
13.2 |
8.4 |
56.5 |
47.5 |
19.0 |
||||||
Benefits and loss and loss adjustment expenses |
0.9 |
2.0 |
(52.2) |
4.0 |
6.5 |
(38.1) |
||||||
Insurance expenses |
0.8 |
0.8 |
8.2 |
3.3 |
3.4 |
(4.1) |
||||||
Corporate, interest and other expenses - net |
2.4 |
4.0 |
(40.9) |
24.4 |
11.6 |
109.7 |
||||||
Operating expenses |
4.2 |
6.9 |
(38.4) |
31.8 |
21.7 |
46.6 |
||||||
Corporate & other pretax operating income |
$ 10.0 |
$ 6.2 |
60.2 % |
$ 24.6 |
$ 25.7 |
(4.3) % |
This segment includes a small life and accident insurance business and the net costs associated with the parent holding company and several internal corporate services subsidiaries. The segment tends to produce highly variable results stemming from volatility inherent from the lack of scale. For the quarter, net investment income increased due to a higher investment yield earned on a slightly lower invested asset base attributable to the return of capital to shareholders. For the full year, interest expense increased due to the issuance of
Summary Consolidated Balance Sheet |
|||
|
|
||
2022 |
2021 |
||
Assets: |
|||
Cash and fixed income securities |
$ 12,688.7 |
$ 11,399.6 |
|
Equity securities |
3,220.9 |
5,302.8 |
|
Other invested assets |
138.0 |
116.5 |
|
Cash and invested assets |
16,047.7 |
16,818.9 |
|
Accounts and premiums receivable |
1,927.5 |
1,768.7 |
|
Federal income tax recoverable |
15.7 |
11.8 |
|
Reinsurance balances recoverable |
5,588.0 |
4,943.4 |
|
Deferred policy acquisition costs |
382.5 |
350.4 |
|
Sundry assets |
1,197.9 |
1,088.4 |
|
Total assets |
$ 25,159.4 |
$ 24,981.8 |
|
Liabilities and Shareholders' Equity: |
|||
Policy liabilities |
$ 2,978.8 |
$ 2,752.0 |
|
Loss and loss adjustment expense reserves |
12,221.5 |
11,425.5 |
|
Federal income tax - deferred |
40.9 |
249.5 |
|
Reinsurance balances and funds |
1,079.4 |
866.0 |
|
Debt |
1,597.0 |
1,588.5 |
|
Sundry liabilities |
1,075.3 |
1,206.9 |
|
Total liabilities |
18,993.2 |
18,088.6 |
|
Shareholders' equity |
6,166.2 |
6,893.2 |
|
Total liabilities and shareholders' equity |
$ 25,159.4 |
$ 24,981.8 |
Cash, Invested Assets, and Shareholders' Equity |
||||||||||||
% Change |
||||||||||||
|
Dec. '22/ |
Dec. '21 / |
||||||||||
2022 |
2021 |
2020 |
Dec. '21 |
Dec. '20 |
||||||||
Cash and invested assets: |
||||||||||||
Fixed income securities, cash and other invested assets |
$ 12,826.7 |
$ 11,516.1 |
$ 11,480.4 |
11.4 % |
0.3 % |
|||||||
Equity securities |
3,220.9 |
5,302.8 |
4,054.8 |
(39.3) |
30.8 |
|||||||
Total per balance sheet |
$ 16,047.7 |
$ 16,818.9 |
$ 15,535.3 |
(4.6) % |
8.3 % |
|||||||
Total at cost for all |
$ 15,367.2 |
$ 15,045.8 |
$ 14,151.6 |
2.1 % |
6.3 % |
|||||||
Composition of shareholders' equity per share: |
||||||||||||
Equity before items below |
$ 19.41 |
$ 18.50 |
$ 17.73 |
4.9 % |
4.3 % |
|||||||
Unrealized investment gains (losses) and other |
||||||||||||
accumulated comprehensive income (loss) |
1.64 |
4.26 |
3.02 |
|||||||||
Total |
$ 21.05 |
$ 22.76 |
$ 20.75 |
(7.5) % |
9.7 % |
|||||||
Segmented composition of |
||||||||||||
shareholders' equity per share: |
||||||||||||
Excluding RFIG run-off segment |
$ 20.15 |
$ 21.47 |
$ 19.25 |
(6.1) % |
11.5 % |
|||||||
RFIG run-off segment |
0.90 |
1.29 |
1.50 |
|||||||||
Consolidated total |
$ 21.05 |
$ 22.76 |
$ 20.75 |
(7.5) % |
9.7 % |
As of
A significant portion of our investable funds have been directed toward high-quality common stocks of
Changes in shareholders' equity per share are reflected in the following table. As shown, these resulted mostly from net income excluding net investment gains (losses), realized and unrealized investment gains (losses), and dividend payments to shareholders.
Shareholders' Equity Per Share |
|||||||
Quarter |
|||||||
Ended |
Years Ended |
||||||
|
|
||||||
2022 |
2022 |
2021 |
2020 |
||||
Beginning balance |
$ 18.92 |
$ 22.76 |
$ 20.75 |
$ 19.98 |
|||
Changes in shareholders' equity: |
|||||||
Net income excluding net investment gains (losses) |
0.80 |
2.80 |
3.10 |
2.24 |
|||
Net of tax realized investment gains (losses) |
(0.08) |
0.17 |
0.02 |
0.04 |
|||
Net of tax unrealized investment gains (losses): |
|||||||
Fixed income securities |
0.47 |
(2.18) |
(0.97) |
0.91 |
|||
Equity securities |
1.02 |
(0.69) |
1.96 |
(0.41) |
|||
Total net of tax realized and unrealized |
|||||||
investment gains (losses) |
1.41 |
(2.70) |
1.01 |
0.54 |
|||
Cash dividends |
(0.23) |
(1.92) |
(2.38) |
(1.84) |
|||
Other |
0.15 |
0.11 |
0.28 |
(0.17) |
|||
Net change |
2.13 |
(1.71) |
2.01 |
0.77 |
|||
Ending balance |
$ 21.05 |
$ 21.05 |
$ 22.76 |
$ 20.75 |
|||
Percentage change for the period |
11.3 % |
(7.5) % |
9.7 % |
3.9 % |
Capitalization |
|||||
Capitalization |
|||||
|
|||||
2022 |
2021 |
2020 |
|||
Debt: |
|||||
4.875% Senior Notes due 2024 |
$ 399.0 |
$ 398.4 |
$ 397.9 |
||
3.875% Senior Notes due 2026 |
547.9 |
547.3 |
546.8 |
||
3.850% Senior Notes due 2051 |
642.9 |
642.6 |
— |
||
Other miscellaneous debt |
7.1 |
— |
21.7 |
||
Total debt |
1,597.0 |
1,588.5 |
966.4 |
||
Common shareholders' equity |
6,166.2 |
6,893.2 |
6,186.6 |
||
Total capitalization |
$ 7,763.2 |
$ 8,481.7 |
$ 7,153.1 |
||
Capitalization ratios: |
|||||
Debt |
20.6 % |
18.7 % |
13.5 % |
||
Common shareholders' equity |
79.4 |
81.3 |
86.5 |
||
Total |
100.0 % |
100.0 % |
100.0 % |
||
Managing Old Republic's Insurance Business for the Long-Run
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. We also can't know exactly when claims will be paid, which may be many years after a policy was issued or expired. This casts
The Company is managed for the long run and with little regard for 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 underwriting and premium rate changes to appear in financial results, and for reserved loss costs to be quantified with greater certainty.
Accompanying Financial Data and Other Information:
- About
Old Republic - Conference Call Information
- Safe Harbor Statement
Financial Supplement:
- A financial supplement to this news release is available on the Company's website: www.oldrepublic.com
About
Conference Call Information
Safe Harbor Statement
Historical data pertaining to the operating results, liquidity, and other performance indicators applicable to an insurance enterprise such as
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. Any such forward-looking statements involve assumptions, uncertainties, and risks that may affect the Company's future performance. With regard to
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, of the Company's 2021 Form 10-K Annual Report filing to the
Any forward-looking statements or commentaries speak only as of their dates.
For
Please visit us at www.oldrepublic.com |
||
Alternatively, please write or call: |
||
Investor Relations |
||
|
||
|
||
(312) 346-8100 |
||
At |
At Financial Relations Board: |
|
Analysts/Investors: Joe Calabrese 212/827-3772 |
View original content:https://www.prnewswire.com/news-releases/old-republic-reports-results-for-the-fourth-quarter-and-full-year-2022-301731169.html
SOURCE
Seven sentenced in conspiracy to defraud federal health insurance programs
VEHICLES STOLEN WITH KEYS LEFT INSIDE ON THE RISE
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News