Old Republic's Results for the Third Quarter and First Nine Months Benefit From Continued Strength of General Insurance Lines

October 26, 2006

CHICAGO /PRNewswire-FirstCall/ -- Old Republic International Corporation (NYSE: ORI), announced the following results for the third quarter and first nine months of 2006:







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 September 30,  Nine Months Ended September 30,
2006  2005 Change  2006 2005 Change
Operating Revenues $962.6  $951.0 1.2% $2,838.8 $2,755.4  3.0%
Net Operating Income $114.7  $119.2 - 3.8% $348.5  $392.3* - 11.2%
Net Income $116.1  $121.6  -4.5%   $360.2  $408.2* -11.8%
Diluted Earnings Per Share:
Net operating income:
Before non- recurring tax benefit
$0.49 $0.51 -3.9% $1.50 $1.49  .7%
2005 non-recurring tax benefit - - - 0.20*
Total   0.49  0.51 -3.9%  $1.50  1.69 -11.2%
Net realized investment gains  0.01  0.01    0.05 0.07
Net income  $0.50 $0.52  -3.8%  $1.55 $1.76* -11.9%
  * Includes non-recurring income tax and related accumulated interest;
recovery of $45.9 after tax, or 20 cents per share.


Old Republic's earnings for this year's third quarter benefited from the continued strength of its General Insurance segment, while the Company's Mortgage Guaranty operations produced slightly better results. Performance of the Title Insurance line, however, continued to be impacted adversely by a cyclical downturn in housing and related mortgage lending markets. For the first nine months of the year, General Insurance provided the greatest contribution to pretax operating earnings strength.

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Old Republic International Corporation


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