Old Republic International Corporation Q4 FY2025 earnings call

1. Investments: Net investment income up 7.9% in Q4 due to higher bond yields; expected net investment income growth to slow in 2026. 2. Loss Reserves: Both specialty and title insurance had favorable prior year reserve development. Specialty had workers' comp with slight unfavorable development offset by other lines, and a credit loss on a large deductible program. 3. Specialty Insurance: Q4 net premiums written up 6.1%, pretax operating income $178M, full year $900M. Combined ratio 97.3% Q4, 93.2% full year. Expense ratio increased due to investments in new companies and technology. 4. Title Insurance: Q4 premium and fee revenue up 12%, combined ratio 94%, pretax income $66M, full year $140M. Focus on technology for agents and margin expansion.

In the fourth quarter, consolidated pretax operating income was $236 million vs $285 million prior year, combined ratio 96% vs 92.7%. For full year, consolidated pretax operating income was $1 billion, combined ratio 94.7%. Specialty insurance: Q4 net premiums earned up 8.3% y-o-y, pretax operating income $178M vs $228M, combined ratio 97.3% vs 91.8% full year. Full year net premiums earned up 10.9% y-o-y, pretax operating income $900M, combined ratio 93.2%. Title group: Q4 premium and fees grew 12.4% y-o-y, pretax operating income $65M vs $55.4M, combined ratio 94% vs 94.4% full year. Full year premium and fees grew 9.1% y-o-y, pretax operating income $140M, combined ratio 97.6%.

1. Specialty insurance expects consistent combined ratio in 2026, focusing on pricing and underwriting discipline. 2. Title insurance expects continued growth, with commercial expected to improve and residential having single-digit growth.

1. Litigation system abuse and proliferation of attorney advertising impacting commercial auto loss trends. 2. Credit risk exposure on large deductible programs leading to insufficient collateral and reserve increases.

Q: Discussion on specialty insurance combined ratio targets for 2026 and background on loss picks A: Targets around current levels, reaction to loss trends by adjusting reserves and rates Q: Title business outlook for 2026 A: Commercial expected to improve, residential with single-digit growth Q: Case reserves and loss trend factors A: Higher bodily injury claims, attorney representation, litigation abuse, with risk selection and rate targeting Q: Capital position and dividends A: Sufficient capital, plans for regular dividend increases and share repurchases