Old Republic Reports First Quarter 2006 Results Led By a 4.3 Percent Increase in Net Operating Income Per Share

April 27, 2006

CHICAGO, Financial Highlights (unaudited; amounts in millions except per share data and percentages; all per share amounts are shown on a diluted basis and have been restated retroactively to reflect the 25% stock dividend issued in December 2005)

Quarters Ended March 31,
  2006 2005 Change
Total Revenues $942.9 $880.2 7.1%
Net Operating Income $112.5 $109.1 3.1%
Net Income $117.4 $114.3  2.7%
Diluted Earnings Per Share:      
Net Operating Income $0.49 $0.47 4.3%
Net Income $0.51 $0.49  4.1%

Old Republic International Corporation (NYSE: ORI), today announced that net operating earnings were slightly higher in this year's first quarter. Earnings for the latest quarter benefited from continued strength in general insurance operations, but were impacted adversely by a cyclical downturn in title insurance profitability and lower mortgage guaranty underwriting margins.

As shown in the above table, Old Republic's consolidated net operating earnings, which exclude net realized investment gains, amounted to $112.5 million, or 49 cents per share, for the first quarter of 2006, compared to $109.1 million, or 47 cents per share in the same period of 2005. Inclusive of net realized investment gains, net income for this year's first quarter amounted to $117.4 million, or 51 cents per share, versus $114.3 million, or 49 cents per share in the year-ago period.

Contact ALTA at 202-296-3671 or communications@alta.org.