OLD REPUBLIC INTERNATIONAL CORP – 10-K – Analysis of management’s financial condition and results of operations (in millions of dollars, except share data)

PREVIEW


This management analysis of financial position and results of operations
pertains to the consolidated accounts of Old Republic International Corporation
("Old Republic", "ORI" or "the Company"). The Company conducts its operations
through a number of regulated insurance company subsidiaries organized into
three major segments: General Insurance (property and liability insurance),
Title Insurance and Republic Financial Indemnity Group ("RFIG") Run-off. A small
life and accident insurance business, accounting for .2% of consolidated
operating revenues for the year ended December 31, 2021 and .5% of consolidated
assets as of that date, is included within the Corporate & Other caption of this
report.

The consolidated accounts are presented in conformity with the Financial
Accounting Standards Board's ("FASB") Accounting Standards Codification ("ASC")
of accounting principles generally accepted in the United States of America
("GAAP"). As a publicly held company, Old Republic utilizes GAAP to comply with
the financial reporting requirements of the Securities and Exchange Commission
("SEC"). From time to time the FASB and the SEC issue various releases, most of
which require additional financial statement disclosures and provide related
application guidance. Of particular relevance to the Company's financial
statements is guidance recently issued by the FASB relative to lease accounting
and accounting for credit losses on financial instruments, which are discussed
further in 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 the
U.S. and those of a small number of other jurisdictions outside the U.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 to
the consolidated financial statements included elsewhere in this report.

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 casts Old 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 from Old 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 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 is managed for the long run and
without significant regard to quarterly or even annual reporting periods that
American industry must observe. In Old Republic's view, such short reporting
time frames do not coincide 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 five- or preferably ten-year intervals. A
ten-year period will 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 report
financial statements and the footnotes thereto.

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                                EXECUTIVE SUMMARY



Old Republic International Corporation reported the following consolidated
results:

OVERALL RESULTS

Years Ended December 31:                                            2021               2020               2019
Pretax income (loss)                                            $ 1,922.1          $   688.4          $ 1,322.4
Pretax investment gains (losses)                                    758.0             (142.0)             636.1
Pretax income (loss) excluding investment
gains (losses)                                                  $ 1,164.0          $   830.4          $   686.2

Net income (loss)                                               $ 1,534.3          $   558.6          $ 1,056.4
Net of tax investment gains (losses)                                598.4             (112.1)             502.2
Net income (loss) excluding investment gains
(losses)                                                        $   935.9          $   670.8          $   554.2

PER DILUTED SHARE

Years Ended December 31:                                            2021               2020               2019
Net income (loss)                                               $    5.05          $    1.87          $    3.51
Net of tax investment gains (losses)                                 1.97              (0.37)              1.67
Net income (loss) excluding investment gains
(losses)                                                        $    3.08          $    2.24          $    1.84

SHAREHOLDERS' EQUITY

December 31:                                                                           2021               2020
Total                                                                              $ 6,893.2          $ 6,186.6
Per Common Share                                                                   $   22.76          $   20.75



The Company reported pretax income, exclusive of all investment gains of $1.16
billion for 2021, representing growth of 40.2% compared to 2020. General
Insurance and Title Insurance both produced solid underwriting results that
drove a consolidated combined ratio of 89.9% for 2021 compared to 93.3% and
95.3% in 2020 and 2019, respectively. In addition to these strong underwriting
results, total and per share net income for 2021 also reflects an increase in
the fair value of equity securities.

Consolidated net premiums and fees earned of $8.0 billion for 2021 represent
growth of 18.8% compared to 2020. General Insurance net earned premiums grew by
mid-single digits over the prior year, while Title Insurance continued to
experience significant growth in premium and fees attributable to a low interest
rate environment and a robust real estate market. Net investment income remained
relatively flat in 2021, reflecting growth in the invested asset base, offset by
lower investment yields.

Book value per share advanced to $22.76 as of December 31, 2021. With the
addition of dividends declared during the year, this was an increase of 21.2%
over year-end 2020, primarily driven by strong operating earnings and by gains
in our investment portfolio.


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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 (losses). Under Generally Accepted
Accounting Principles (GAAP), however, net income (loss), inclusive of
investment gains (losses), is the measure of total profitability.

In management's opinion, the focus on income (loss) excluding investment gains
(losses) 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 (loss) can mask trends in
operating results. That is because their realization is, more often than not,
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 in reported net income (loss).

FINANCIAL HIGHLIGHTS
                                                                                                                    % Change
                                                                                                            2021                2020
Years Ended December 31:                          2021               2020               2019              vs. 2020            vs. 2019
SUMMARY INCOME STATEMENTS:
Revenues:
Net premiums and fees earned                  $ 8,003.6          $ 6,737.8          $ 6,241.1                 18.8  %              8.0  %
Net investment income                             434.3              438.9              450.7                 (1.1)               (2.6)
Other income                                      145.6              131.2              132.6                 11.0                (1.0)
Total operating revenues                        8,583.5            7,308.0            6,824.4                 17.5                 7.1
Investment gains (losses):
Realized from actual transactions                   6.9               14.2               38.6
Realized from impairments                             -                  -               (2.0)
Unrealized from changes in fair value of
equity securities                                 751.1             (156.2)             599.5
Total investment gains (losses)                   758.0             (142.0)             636.1
Total revenues                                  9,341.6            7,166.0            7,460.5
Operating expenses:
Claim costs                                     2,420.9            2,491.4            2,572.7                 (2.8)               (3.2)
Sales and general expenses                      4,942.3            3,942.4            3,525.4                 25.4                11.8
Interest and other costs                           56.2               43.7               40.0                 28.7                 9.1
Total operating expenses                        7,419.5            6,477.5            6,138.1                 14.5  %              5.5  %
Pretax income (loss)                            1,922.1              688.4            1,322.4
Income taxes (credits)                            387.7              129.7              265.9
Net income (loss)                             $ 1,534.3          $   558.6          $ 1,056.4

COMMON STOCK STATISTICS:
Components of net income (loss) per share:
Basic net income (loss) excluding investment
gains (losses)                                $    3.10          $    2.24          $    1.85                 38.4  %             21.1  %
Net investment gains (losses):
Realized from actual transactions and
impairments                                        0.02               0.04               0.10
Unrealized from changes in fair value of
equity securities                                  1.96              (0.41)              1.57
Basic net income (loss)                       $    5.08          $    1.87          $    3.52
Diluted net income (loss) excluding
investment gains (losses)                     $    3.08          $    2.24          $    1.84                 37.5  %             21.7  %
Net investment gains (losses):
Realized from actual transactions and
impairments                                        0.02               0.04               0.10
Unrealized from changes in fair value of
equity securities                                  1.95              (0.41)              1.57
Diluted net income (loss)                     $    5.05          $    1.87          $    3.51
Cash dividends on common stock                $    2.38          $    1.84          $    1.80
Book value per share                          $   22.76          $   20.75          $   19.98                  9.7  %              3.9  %



Management believes the information presented in the table on the following
page, prior to the inclusion of investment gains (losses), highlights the most
meaningful, realistic indicators of ORI's segmented and consolidated financial
performance. The information underscores management's view of reported results
by separating the inherent volatility of securities markets and their
above-noted impact on reported net income (loss).
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                                                                                     Major Segmented and Consolidated
                                                                                         Elements of Income (Loss)
                                                                                                                     2021                 2020
Years Ended December 31:                                   2021               2020               2019              vs. 2020             vs. 2019
A. Net premiums, fees, and other
income:
General Insurance                                      $ 3,555.5          $ 3,394.2          $ 3,432.4                  4.8  %               (1.1) %
Title Insurance                                          4,404.3            3,286.3            2,736.0                 34.0                  20.1
Corporate & Other                                           11.0               12.0               13.4                 (8.8)                (10.0)
Other income                                               145.6              131.2              132.6                 11.0                  (1.0)
Subtotal                                                 8,116.5            6,823.9            6,314.4                 18.9                   8.1
RFIG Run-off                                                32.6               45.1               59.2                (27.6)                (23.8)
Consolidated                                           $ 8,149.2          $ 6,869.1          $ 6,373.7                 18.6  %                7.8  %

B. Underwriting and related services income
(loss):
General Insurance                                      $   311.4          $   151.8          $    84.9                105.1  %               78.8  %
Title Insurance                                            474.0              305.8              193.5                 55.0                  58.0
Corporate & Other                                          (20.9)             (17.0)             (15.5)               (22.7)                 (9.5)
Subtotal                                                   764.6              440.5              262.8                 73.5                  67.6
RFIG Run-off                                                21.3               (5.3)              12.7                497.1                (142.3)
Consolidated                                           $   785.9          $   435.2          $   275.6                 80.6  %               57.9  %
C. Consolidated underwriting ratio:
Claim ratio:
Current year                                                32.9  %            38.2  %            41.7  %
Prior years                                                 (2.7)              (1.2)               (.5)
Total                                                       30.2               37.0               41.2
Expense ratio                                               59.7               56.3               54.1
Combined ratio                                              89.9  %            93.3  %            95.3  %

D. Net investment income:
General Insurance                                      $   342.4          $   352.2          $   356.4                 (2.8) %               (1.2) %
Title Insurance                                             43.8               42.0               41.4                  4.3                   1.3
Corporate & Other                                           36.5               29.4               35.1                 24.0                 (16.2)
Subtotal                                                   422.8              423.6              433.0                 (0.2)                 (2.2)
RFIG Run-off                                                11.4               15.2               17.6                (24.7)                (13.4)
Consolidated                                           $   434.3          $   438.9          $   450.7                 (1.1) %               (2.6) %
E. Interest and other charges
(credits):
General Insurance                                      $    64.2          $    64.2          $    71.1
Title Insurance                                              2.1                3.8                4.1
Corporate & Other (a)                                      (10.1)             (24.3)             (35.2)
Subtotal                                                    56.2               43.7               40.0
RFIG Run-off                                                   -                  -                  -
Consolidated                                           $    56.2          $    43.7          $    40.0                 28.7  %                9.1  %

F. Segmented and consolidated pretax income
(loss)
excluding investment gains
(losses)(B+D-E):
General Insurance                                      $   589.6          $   439.8          $   370.2                 34.1  %               18.8  %
Title Insurance                                            515.7              344.0              230.8                 49.9                  49.0
Corporate & Other                                           25.7               36.7               54.8                (29.8)                (33.1)
Subtotal                                                 1,131.1              820.5              655.9                 37.9                  25.1
Run-off                                                     32.8                9.8               30.3                232.3                 (67.4)
Consolidated                                             1,164.0              830.4              686.2                 40.2  %               21.0  %
Income taxes (credits) on above (b)                        228.1              159.6              132.0

G. Net result (loss) excluding

 investment gains (losses)                                 935.9              670.8              554.2                 39.5  %               21.0  %
H. Consolidated pretax investment gains
(losses):
Realized from actual transactions and
impairments                                                  6.9               14.2               36.6
Unrealized from changes in fair value of equity
securities                                                 751.1             (156.2)             599.5
Total                                                      758.0             (142.0)             636.1
Income taxes (credits) on above                            159.6              (29.8)             133.8
Net of tax investment gains (losses)                       598.4             (112.1)             502.2
I. Net income (loss)                                   $ 1,534.3          $   558.6          $ 1,056.4
J. Consolidated operating cash flow                    $ 1,311.7          $ 

1,185.0 $936.2

(a) Includes consolidation/elimination entries. (b) Effective tax rates
applicable to profit before tax excluding investment gains and (losses) was 19.6%,
19.2% and 19.2% for the years ended December 31, 20212020 and 2019,
respectively.

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General insurance results

                                                                                                     General Insurance Summary Operating Results
                                                                                                                                                      % Change
                                                                                                                                             2021                  2020
Years Ended December 31:                                                       2021                  2020               2019               vs. 2020              vs. 2019
Net premiums written                                                     $     3,680.9           $ 3,431.3          $ 3,469.0                    7.3  %               (1.1) %
Net premiums earned                                                            3,555.5             3,394.2            3,432.4                    4.8                  (1.1)
Net investment income                                                            342.4               352.2              356.4                   (2.8)                 (1.2)
Other income                                                                     144.5               130.3              131.9                   10.9                  (1.2)
Operating revenues                                                             4,042.5             3,876.8            3,920.8                    4.3                  (1.1)
Claim costs                                                                    2,303.1             2,372.0            2,464.6                   (2.9)                 (3.8)
Sales and general expenses                                                     1,085.4             1,000.7            1,014.7                    8.5                  (1.4)
Interest and other costs                                                          64.2                64.2               71.1                    0.1                  (9.7)
Operating expenses                                                             3,452.8             3,436.9            3,550.5                    0.5                  (3.2)
Segmented pretax operating income (loss)                                 $       589.6           $   439.8          $   370.2                   34.1  %               18.8  %

Claim ratio                                                                       64.8   %            69.9  %            71.8  %
Expense ratio                                                                     26.5                25.6               25.7
                          Combined ratio                                          91.3   %            95.5  %            97.5  %



General Insurance net premiums earned increased 4.8% for 2021, with rising
premiums in commercial auto, financial indemnity, and property lines of
coverage. Strong premium rate increases for most lines of coverage, other than
workers' compensation, high renewal retention ratios, and new business
production all contributed. Conversely, net premiums earned were down slightly
in 2020 compared to 2019. The economic impacts of the COVID-19 pandemic and
tightened underwriting standards were mitigated by strong premium rate increases
for most insurance products. Declining workers' compensation and general
liability premiums were largely offset by rising premiums in commercial auto,
financial indemnity and property coverages. Net investment income decreased in
both 2021 and 2020, reflecting lower investment yields partially offset by
growth in the invested asset base.

The reported claim ratio for General Insurance improved in 2021 and 2020,
inclusive of favorable reserve development from prior periods and a lower
current period claim provision, attributable to several years of premium rate
increases and underwriting actions. Favorable development was higher in 2021 due
predominantly to better than expected claims experience related to workers'
compensation and commercial auto reserves on older, more developed years. The
2021 expense ratio was slightly elevated compared to the prior years, generally
reflecting variability of sales and general expenses within the line of coverage
mix.

Together, these factors produced significantly higher pre-tax operating income
for the declared periods.

The following table shows recent annual 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
 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
 2021                  64.8  %                                  (3.8) %                                68.6  %



Annual claim ratios and trends may not be particularly meaningful indicators of
future outcomes for an insurance company with a liability-oriented coverage mix
and its relatively long claim payment patterns. Management's long-term targets,
assuming the current coverage mix, are for annually reported claim ratio
averages in the high 60% to low 70% range, expense ratio averages of 25% or
below, and a combined ratio ranging between 90% and 95%.
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Results of the title insurance segment

                                                                                             Title Insurance Summary Operating Results
                                                                                                                                             % Change
                                                                                                                                    2021                  2020
Years Ended December 31:                                              2021                  2020               2019               vs. 2020              vs. 2019
Net premiums and fees earned                                    $     4,404.3           $ 3,286.3          $ 2,736.0                   34.0  %               20.1  %
Net investment income                                                    43.8                42.0               41.4                    4.3                   1.3
Other income                                                              1.1                 0.9                0.7                   14.9                  39.1
Operating revenues                                                    4,449.3             3,329.3            2,778.1                   33.6                  19.8
Claim costs                                                             112.9                75.3               67.4                   49.9                  11.8
Sales and general expenses                                            3,818.4             2,906.1            2,475.7                   31.4                  17.4
Interest and other costs                                                  2.1                 3.8                4.1                  (42.7)                 (7.7)
Operating expenses                                                    3,933.5             2,985.3            2,547.3                   31.8                  17.2
Segmented pretax operating income (loss)                        $       515.7           $   344.0          $   230.8                   49.9  %               49.0  %

Claim ratio                                                               2.6   %             2.3  %             2.5  %
Expense ratio                                                            86.7                88.4               90.5
                     Combined ratio                                      89.3   %            90.7  %            93.0  %



Title Insurance net premiums and fees earned grew by 34.0% and 20.1% for 2021
and 2020, respectively, attributable to a low interest rate environment and a
robust real estate market. Increased revenue generated on purchase transactions
in both years was partially offset by a decline in refinance activity beginning
in 2021. Revenue from independent title agents continued to increase over prior
years although at a lower rate in more recent quarters, while revenue from
direct production channels declined slightly in the later part of 2021. Net
investment income increased in both 2021 and 2020, reflecting growth in the
invested asset base, somewhat offset by lower investment yields.

Title Insurance's reported claim ratios were relatively flat for the years
presented, inclusive of favorable development. The expense ratios reflect the
benefit of greater leverage of the expense structure on significantly higher
premium and fee volume, tempered by an increased mix of agency produced revenues
late in 2021.

Together, these factors produced significantly higher pre-tax operating income
for the declared periods.

The following table shows recent annual 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
   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
   2021                 2.6  %                                   (1.0) %                               3.6  %






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                         RFIG Run-off Segment Results


                                                                                                  RFIG Run-off Summary Operating Results (a)
                                                                                                                                                % Change
                                                                                                                                       2021                  2020
Years Ended December 31:                                                      2021                2020             2019              vs. 2020              vs. 2019
Mortgage Insurance (MI)
Net premiums earned                                                     $       32.6           $  45.1          $  58.8                  (27.6) %              (23.3) %
Net investment income                                                           11.4              15.2             17.3                  (24.7)                (12.0)
Claim costs                                                                     (1.7)             36.9             32.3                 (104.7)                 14.1
MI pretax operating income (loss)                                       $       32.8           $   9.8          $  29.2                  232.3  %              (66.2) %

Claim ratio                                                                     (5.3)  %          81.7  %          55.0  %
Expense ratio                                                                   39.9              30.2             24.8
                         Combined ratio                                         34.6   %         111.9  %          79.8  %

Consumer Credit Insurance (CCI) (a)
CCI pretax operating income (loss)                                      $          -           $     -          $   1.0

Total MI and CCI run-off business (a)
Segment pretax operating income (loss)                                  $       32.8           $   9.8          $  30.3                  232.3  %              (67.4) %


__________________
(a)  Results for the CCI run-off are expected to be immaterial in the remaining
run-off periods. Effective July 1, 2019, these results have been re-classified
to General Insurance for all future periods.

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 2021 compared to 2020. Claim costs in 2021 reflect fewer newly
reported delinquencies along with improving trends in cure rates and lower claim
severity influenced by the ongoing economic recovery and continued strength in
the real estate market. Claim costs for 2020 reflected greater reserve
provisions due to elevated delinquencies and the economic impacts of the
COVID-19 pandemic. Investment income decreased in both years reflecting a
declining invested asset base and lower investment yields. Extraordinary
dividends of $100.0 million and $37.7 million were paid to the parent company in
2021 and 2020, respectively.

The following table shows recent annual 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
 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
 2021                  (5.3) %                                  (67.5) %                                62.2  %



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                      Corporate & Other Operating Results


                                                                              Corporate & Other Summary Operating Results
                                                                                                                             % Change
                                                                                                                    2021                  2020
Years Ended December 31:                                  2021                 2020             2019              vs. 2020              vs. 2019
Net life and accident premiums earned               $         11.0          $  12.0          $  13.4                   (8.8) %              (10.0) %
Net investment income                                         36.5             29.4             35.1                   24.0                 (16.2)
Other operating income                                           -                -                -                      -                     -
Operating revenues                                            47.5             41.4             48.5                   14.7                 (14.6)
Claim costs                                                    6.5              7.1              8.8                   (7.9)                (19.7)
Insurance expenses                                             3.4              4.2              4.5                  (17.6)                 (6.6)
Corporate, interest and other expenses - net                  11.6             (6.6)           (19.7)                      N/M               66.3
Operating expenses                                            21.7              4.7             (6.3)                      N/M              174.7

Corporate operating income (loss) before taxes and other $25.7 $36.7 $54.8

                  (29.8) %              (33.1) %



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 in 2021 related to the issuance of $650 million of
debt late in the second quarter. This increase was largely offset by net
investment income from a higher level of investments.

Summary consolidated balance sheet

                                                                    December 31,
                                                                2021            2020
         Assets:
         Cash and fixed maturity securities                 $ 11,399.6      

$11,365.1

         Equity securities                                     5,302.8      

4,054.8

         Other invested assets                                   116.5      

115.3

         Cash and invested assets                             16,818.9      

15,535.3

         Accounts and premiums receivable                      1,768.7      

1,593.9

         Federal income tax recoverable: Current                  11.8      

         Reinsurance balances recoverable                      4,943.4      

4,362.8

         Deferred policy acquisition costs                       350.4           328.0
         Sundry assets                                         1,088.4           995.0
         Total assets                                       $ 24,981.8      $ 22,815.2

Liabilities and equity:

         Policy liabilities                                 $  2,752.0      

$2,593.1

         Claim reserves                                       11,425.5      

10,671.0

         Federal income tax payable: Current                         -             4.2
                                Deferred                         249.5           137.3
         Reinsurance balances and funds                          866.0           725.4
         Debt                                                  1,588.5           966.4
         Sundry liabilities                                    1,206.9         1,530.8
         Total liabilities                                    18,088.6      

16,628.5

         Shareholders' equity                                  6,893.2      

6,186.6

Total liabilities and equity $24,981.8 $22,815.2


                                       29
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                Cash, Invested Assets, and Shareholders' Equity


                                                                                                                           Cash, Invested Assets, and Shareholders' Equity
                                                                                                                                                                               % Change
                                                                                                                   December 31,                                   Dec. '21 /               Dec. '20 /
As of December 31:                                                                                 2021                   2020                2019                 Dec. '20                 Dec. '19
Cash and invested assets:
            Fixed maturity securities, cash and other
            invested assets                                                                 $       11,516.1          $ 11,480.4          $ 10,496.9                      0.3  %                   9.4  %
            Equity securities                                                                        5,302.8             4,054.8             4,030.5                     30.8                      0.6
            Total per balance sheet                                                         $       16,818.9          $ 15,535.3          $ 14,527.4                      8.3  %                   6.9  %
            Total at cost for all                                                           $       15,045.8          $ 14,151.6          $ 13,327.2                      6.3  %                   6.2  %

Composition of equity per share:

            Equity before items below                                                       $          18.50          $    17.73          $    17.25                      4.3  %                   2.8  %
            Unrealized investment gains (losses) and other
                             accumulated comprehensive income (loss)                                    4.26                3.02                2.73
                                                    Total                                   $          22.76          $    20.75          $    19.98                      9.7  %                   3.9  %

Segmented composition of
shareholders' equity per share:
            Excluding RFIG Run-off segment                                                  $          21.47          $    19.25          $    18.37                     11.5  %                   4.8  %
            RFIG Run-off segment                                                                        1.29                1.50                1.61
                                                    Consolidated total                      $          22.76          $    20.75          $    19.98                      9.7  %                   3.9  %



Old Republic's invested assets portfolio is directed in consideration of
enterprise-wide risk management objectives. Most importantly, these are intended
to ensure solid funding of the insurance subsidiaries' long-term obligations to
customers, policyholders and their beneficiaries, as well as the long-term
stability of the subsidiaries' capital accounts. For these reasons, the
investment portfolio contains no significant insurance risk-correlated asset
exposures to real estate, mortgage-backed securities, collateralized debt
obligations ("CDO's"), derivatives, hybrid securities, or illiquid private
equity and hedge fund investments. Moreover, the Company does not engage in
hedging or securities lending transactions, nor does it invest in securities
whose values are predicated on non-regulated financial instruments exhibiting
amorphous or unfunded counter-party risk attributes.

From December 31, 2021the consolidated investment portfolio reflects a
allocation of around 68% to fixed-maturity securities (bonds and notes) and
short-term investments and 32% in equity securities (common shares). the
fixed-term portfolio continues to be the anchor of insurance
obligations of underwriting subsidiaries. Maturities are stratified and
in a prudent manner at the expected time of payment of these obligations in the
to come up. The quality of the investment portfolio remains at high levels.

In recent years, a significant portion of our investable funds have been
directed toward high-quality common stocks of U.S. companies (currently limited
to fewer than 100 issues). We favor those with long-term records of reasonable
earnings growth and steadily increasing dividends. Pursuant to enterprise risk
management guidelines and controls, we perform regular stress tests of the
equities portfolio to gain reasonable assurance that periodic downdrafts in
market prices would not seriously undermine our financial strength and the
long-term continuity and prospects of our insurance underwriting business.


                                       30
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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.

                                                                    

Equity per share

                                                                             December 31,
                                                             2021                    2020              2019
Beginning balance                                       $    20.75                $  19.98          $  17.23
Changes in shareholders' equity:
Net income (loss) excluding net investment gains
(losses)                                                      3.10                    2.24              1.85
Net of tax realized investment gains (losses)                 0.02                    0.04              0.10

After taxes on unrealized investment gains (losses):

 Fixed maturity securities                                   (0.97)                   0.91              0.96
 Equity securities                                            1.96                   (0.41)             1.57
Total net of tax realized and unrealized
investment gains (losses)                                     1.01                    0.54              2.63
Cash dividends                                               (2.38)                  (1.84)            (1.80)
Other                                                         0.28                   (0.17)             0.07
Net change                                                    2.01                    0.77              2.75
Ending balance                                          $    22.76                $  20.75          $  19.98
Percentage change for the period                               9.7   %                 3.9  %           16.0  %



Capitalization


                                                   Capitalization
                                                    December 31,
                                        2021            2020            2019
Debt:
4.875% Senior Notes due 2024        $   398.4       $   397.9       $   397.3
3.875% Senior Notes due 2026            547.3           546.8           546.2
3.850% Senior Notes due 2051            642.6               -               -
Other miscellaneous debt                    -            21.7            30.4
Total debt                            1,588.5           966.4           974.0
Common shareholders' equity           6,893.2         6,186.6         6,000.1
Total capitalization                $ 8,481.7       $ 7,153.1       $ 6,974.2

Capitalization ratios:
Debt                                     18.7  %         13.5  %         14.0  %
Common shareholders' equity              81.3            86.5            86.0
Total                                   100.0  %        100.0  %        100.0  %




                                       31
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                           DETAILED MANAGEMENT ANALYSIS



This section of the Management Analysis of Financial Position and Results of
Operations is additive to and should be read in conjunction with the Executive
Summary which precedes it.

                              RESULTS OF OPERATIONS



 Consolidated Overview


COVID-19 Pandemic and Old Republic Business

Throughout 2021, the economy continued to recover from the effects of the
COVID-19 pandemic and the associated governmental responses ("COVID-19" or "the
pandemic"). Most of Old Republic's business operations have permitted associates
to return to the office. Old Republic experienced no meaningful interruption in
its ability to service the needs of customers throughout the remote working
environment or the beginning stages of the return to office.

Demand for several of the Company's insurance coverages in the General Insurance
segment is related to overall economic conditions, however, the Company's
exposure to the sectors impacted the most by COVID-19 has not been significant.
Additionally, aside from higher reported delinquencies and resulting claims
costs experienced within the RFIG Run-off segment during 2020, the overall
impact of COVID-19 on the Company's claims experience has not been significant.

The COVID-19 pandemic continues to adversely impact the U.S. economy and
financial markets. New variants of the COVID-19 virus or a resurgence in
infection rates could lead to a reduction in economic activity, resulting in a
decline in demand for the Company's products. As a result, the Company's
operating results, business and financial condition could be adversely affected
in subsequent periods by future economic disruptions caused by the COVID-19
pandemic.

                                Premiums & Fees

The main sources of of the old republic consolidated earned premiums and expenses for
the periods indicated were as follows:

                                                                                  Earned Premiums and Fees
                                                                                                                                            % Change
                                                                                                Corporate &                                from prior
                                     General             Title            RFIG Run-off             Other               Total                 period
Years Ended December 31:
2019                               $ 3,432.4          $ 2,736.0          $       59.2          $      13.4          $ 6,241.1                       5.1  %
2020                                 3,394.2            3,286.3                  45.1                 12.0            6,737.8                       8.0
2021                               $ 3,555.5          $ 4,404.3          $       32.6          $      11.0          $ 8,003.6                      18.8  %



                             Net Investment Income



Net investment income is affected by trends in interest and dividend yields for
the types of securities in which the Company's funds are invested during each
reporting period. The following tables reflect the segmented and consolidated
invested asset bases as of the indicated dates, and the investment income earned
and resulting yields on such assets. Since the Company can exercise little
control over fair values, yields are evaluated on the basis of investment income
earned in relation to the cost of the underlying invested assets, though yields
based on the fair values of such assets are also shown in the statistics that
follow.
                                       32
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                                                                                                                                      Fair
                                                                Invested Assets at Cost                                              Value              Invested
                                                                                            Corporate                               Adjust-          Assets at Fair
                                General             Title             RFIG Run-off           & Other              Total               ment               Value
As of December 31:
2020                         $ 10,987.8          $ 1,328.4          $       545.1          $ 1,083.8          $ 13,945.2          $ 1,384.9          $  15,330.1
2021                         $ 11,379.7          $ 1,569.2          $       459.0          $ 1,394.8          $ 14,802.9          $ 1,773.4          $  16,576.3



                                            Net Investment Income                                   Yield at
                                                                 Corporate                    Original       Fair
                      General      Title       RFIG Run-off       & Other         Total         Cost        Value
      Years Ended
      December 31:
      2019           $ 356.4      $ 41.4      $       17.6      $     35.1      $ 450.7         3.48  %     3.30  %
      2020             352.2        42.0              15.2            29.4        438.9         3.24        2.96
      2021           $ 342.4      $ 43.8      $       11.4      $     36.5      $ 434.3         3.02  %     2.72  %



Consolidated net investment income decreased by 1.1% in 2021 and 2.6% in 2020.
This revenue source is affected by changes in the invested asset base mainly
driven by consolidated operating cash flows and the issuance of debt in 2021, by
a concentration of investable assets in interest-bearing securities, and by
changes in market rates of return. The yields on interest bearing securities for
2021 and 2020 reflect a lower interest rate environment.

                             Benefits and Claims



The Company records the benefits, claims and related settlement costs that have
been incurred during each accounting period. Total claim costs are affected by
the amount of paid claims and the adequacy of reserve estimates established for
current and prior years' claim occurrences at each balance sheet date.

The following table shows a breakdown of gross and net of reinsurance claim
reserve estimates for major types of insurance coverages as of December 31, 2021
and 2020:

                                                                                                             Claim and Loss Adjustment Expense Reserves
December 31:                                                                                                 2021                                   2020
                                                                                                   Gross               Net                Gross               Net
Workers' compensation                                                                          $  4,893.0          $ 2,955.6          $  4,929.2          $ 3,044.1
General liability                                                                                 1,324.4              630.7             1,309.4              641.5
Commercial automobile (mostly trucking)                                                           2,850.0            1,736.5             2,379.8            1,591.5
Other coverages                                                                                   1,355.5              979.3             1,086.2              782.4
Unallocated loss adjustment expense reserves                                                        285.2              284.8               269.1              268.3
                                   Total General Insurance reserves                              10,708.4            6,587.0             9,973.9            6,328.0
Title                                                                                               594.2              594.2               556.1              556.1
RFIG Run-off                                                                                        111.2              111.2               127.6              127.6
Life and accident                                                                                    11.6                7.6                13.2                8.6
                                   Total claim and loss adjustment expense reserves            $ 11,425.5          $ 7,300.2          $ 10,671.0          $ 7,020.4
Asbestosis and environmental claim reserves included
                  in the above General Insurance reserves:
                                   Amount                                                      $    118.1          $    77.2          $    127.6          $    82.4
                                   % of total General Insurance reserves                              1.1  %             1.2  %              1.3  %             1.3  %


A summary of changes in overall provisions for claims and related costs is
included in note 4 of the consolidated financial statements.

The percentage of net claims, benefits and related settlement costs incurred
as a percentage of premiums and related fee income from the three
the main operating segments and for the consolidated activities were as follows:

                                       33
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    Years Ended December 31:                                      2021        2020        2019
    General                                                      64.8  %     69.9  %     71.8  %
    Title                                                         2.6         2.3         2.5
    RFIG Run-off                                                 (5.3)       81.7        53.5
    Consolidated claim ratio                                     30.2  %     37.0  %     41.2  %

Reconciliation of the consolidated loss ratio:

    Provision for insured events of the current year             32.9  %   

38.2% 41.7%

Evolution of the provision for insured events of previous years:

    net (favorable) unfavorable development                      (2.7)     
 (1.2)        (.5)
    Consolidated claim ratio                                     30.2  %     37.0  %     41.2  %



The consolidated claim ratio reflects the changing effects of period-to-period
contributions of each segment to consolidated results, and this ratio's
variances within each segment. For the three most recent calendar years, the
above table indicates that the one-year development of consolidated reserves at
the beginning of each year produced favorable developments in 2021, 2020, and
2019, which on average decreased the consolidated claim ratio by 1.6 percentage
points.

Management believes that its overall reserving practices have been consistently
applied over many years, and that its aggregate net reserves have generally
resulted in reasonable approximations of the ultimate net costs of claims
incurred. However, no representation is made nor is any guaranty given that
ultimate net claim and related costs will not develop in future years to be
significantly greater or lower than currently established reserve estimates. In
management's opinion, such changes in net claims and related costs are not
likely to have a material effect on the Company's consolidated financial
position, although it could affect materially its consolidated results of
operations for any one annual or interim reporting period. See further
discussion in this Annual Report on Form 10-K under Item 1A - Risk Factors.

                 Underwriting Acquisition and Other Expenses



The following table shows the expense ratios recorded by each major
business segment and under consolidation for the periods indicated:

                                                                  RFIG
                                        General      Title       Run-off      Consolidated
            Years Ended December 31:
            2019                         25.7  %     90.5  %      25.0  %           54.1  %
            2020                         25.6        88.4         30.2              56.3
            2021                         26.5  %     86.7  %      39.9  %           59.7  %



Variations in the Company's consolidated expense ratios reflect a continually
changing mix of coverages sold and costs of producing business in the Company's
three largest operating segments. To a significant degree, expense ratios for
both the General and Title Insurance segments are mostly reflective of variable
costs, such as commissions or similar charges, that rise or decline along with
corresponding changes in premium and fee income. Moreover, general operating
expenses can contract or expand in differing proportions due to varying levels
of operating efficiencies and expense management opportunities in the face of
changing market conditions. The 2021 General Insurance expense ratio was also
impacted by changes in line of coverage mix and certain operating expense
charges. The Title Insurance ratios reflect the benefit of greater leverage of
the expense structure on significantly higher premium and fee volume, tempered
by an increased mix of agency produced revenues late in 2021.

                                Combined Ratios

The combined net loss ratios summarized above, benefits and
subscription fees are as follows:

                                                                  RFIG
                                        General      Title       Run-off      Consolidated
            Years Ended December 31:
            2019                         97.5  %     93.0  %      78.5  %           95.3  %
            2020                         95.5        90.7        111.9              93.3
            2021                         91.3  %     89.3  %      34.6  %           89.9  %



                                       34
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                         Net Investment Gains (Losses)



The Company's investment policies are not designed to maximize or emphasize the
realization of investment gains. Rather, these policies aim for a stable source
of income from interest and dividends, protection of capital, and providing
sufficient liquidity to meet insurance underwriting and other obligations as
they become payable in the future. Dispositions of fixed maturity securities
generally arise from scheduled maturities and early calls; in 2021, 2020, and
2019, 80.7%, 76.2% and 54.0%, respectively, of all such dispositions resulted
from these occurrences. The realization of investment gains or losses can be
highly discretionary and can be affected by such factors as the timing of
individual securities sales, the recording of estimated losses from write-downs
of impaired securities, tax-planning and tax-rate change considerations, and
modifications of investment management judgments regarding the direction of
securities markets or the future prospects of individual investees or industry
sectors.

The following table reflects the composition of net investment gains or losses
for the periods shown.

                          Realized Investment Gains (Losses) from Actual
                                           Transactions                                        Impairment Losses on Securities                     Unrealized
                                                 Equity                                                                                          Gains (Losses)
                                               Securities                                                                                         from Changes
                           Fixed               and Miscel-                               Fixed                 Miscel-                           in Fair Value          Total Investment
                          Maturity               laneous                               Maturity                laneous                             of Equity                 Gains
                         Securities            Investments           Total            Securities             Investments           Total           Securities               (Losses)
Years Ended
December 31:
2019                  $        (1.9)         $       40.6          $ 38.6          $         (2.0)         $          -          $ (2.0)         $     599.5          $           636.1
2020                           (7.4)                 21.6            14.2                       -                     -               -               (156.2)                    (142.0)
2021                  $         1.5          $        5.3          $  6.9          $            -          $          -          $    -          $     751.1          $           758.0



                                  Income Taxes



The effective consolidated income tax rates were 20.2%, 18.9%, and 20.1% in
2021, 2020, and 2019, respectively. The rates for each year reflect primarily
the varying proportions of pretax operating income (loss) derived from partially
tax preferred investment income (principally tax-exempt interest and dividend
income), the combination of fully taxable investment income, investment gains or
losses, underwriting and service income and adjustments regarding the
recoverability of deferred tax assets.

  Segment Overview



General Insurance



Summary Operating Results
                                                                                                                                   % Change
                                                                                                                          2021                  2020
Years Ended December 31:                                       2021        
      2020               2019               vs. 2020              vs. 2019
Net premiums earned                                        $ 3,555.5          $ 3,394.2          $ 3,432.4                    4.8  %               (1.1) %
Net investment income                                          342.4              352.2              356.4                   (2.8)                 (1.2)
Claim costs                                                  2,303.1            2,372.0            2,464.6                   (2.9)                 

(3.8)

Sales and general expenses                                   1,085.4            1,000.7            1,014.7                    8.5                  

(1.4)

Segmented pretax operating income (loss)                   $   589.6          $   439.8          $   370.2                   34.1  %               18.8  %

Claim ratio                                                     64.8  %            69.9  %            71.8  %
Expense ratio                                                   26.5               25.6               25.7
           Combined ratio                                       91.3  %            95.5  %            97.5  %



Premiums & Fees

The percentage breakdown of net premiums earned for the main insurance covers
in General insurance was the following:

                                       35
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                                                                               General Insurance Earned Premiums by Type of Coverage
                                        Commercial                                                                     Inland
                                        Automobile                                                                     Marine
                                         (mostly                                              Financial                 and                   General
                                        trucking)            Workers' Compensation            Indemnity               Property               Liability               Other
Years Ended December 31:
2019                                           37.2  %                      29.1  %                  6.4  %                 7.6  %                  6.6  %              13.1  %
2020                                           38.4                         25.4                     8.0                    8.7                     6.0                 13.5
2021                                           39.7  %                      21.9  %                  9.7  %                 9.7  %                  5.2  %              13.8  %


General Insurance net premiums earned increased 4.8% for 2021 with rising
premiums in commercial auto, financial indemnity, and property lines of
coverage. Strong premium rate increases for most lines of coverage, other than
workers' compensation, high renewal retention ratios, and new business
production all contributed. Conversely, net premiums earned were down slightly
in 2020 compared to 2019. The economic impacts of the COVID-19 pandemic and
tightened underwriting standards were mitigated by strong premium rate increases
for most insurance products. Declining workers' compensation and general
liability premiums were largely offset by rising premiums in commercial auto,
financial indemnity and property coverages.

Benefits and complaints

The percentage of net claims, benefits and related adjustment expenses measured
compared to the premiums earned by the main types of insurance coverage were as follows:

                                                                               General Insurance Claim Ratios by Type of Coverage
                                                  Commercial                                            Inland
                                                  Automobile                                            Marine
                              All                  (mostly                   Workers'                    and                  Financial                General
                           Coverages              trucking)                Compen-sation               Property               Indemnity               Liability               Other
Years Ended
December 31:
2019                            71.8  %                  84.0  %                     63.2  %                62.6  %                 64.0  %                 77.8  %              61.4  %
2020                            69.9                     80.8                        60.8                   58.3                    57.1                    73.6                 67.2
2021                            64.8  %                  70.8  %                     58.9  %                59.4  %                 53.9  %                 64.1  %              65.7  %



The General Insurance claim ratio improved in 2021 and 2020 and was primarily
driven by prior periods' favorable reserve developments and a lower current
period claim provision as more fully described in the Executive Summary of the
Management Analysis of Financial Position and Results of Operations.

Unfavorable asbestosis and environmental ("A&E") claim developments, although
not material in any of the periods presented, are typically attributable to
periodic re-evaluations of such reserves as well as subsequent reclassifications
of other coverages' reserves, most often workers' compensation, deemed
assignable to A&E category of losses. Except for a small portion that emanates
from ongoing primary insurance operations, a large majority of the A&E claim
reserves posted by Old Republic stem mainly from its participations in assumed
reinsurance treaties and insurance pools which were discontinued during the
1980's and have since been in run-off status. With respect to the primary
portion of gross A&E reserves, Old Republic administers the related claims
through its claims personnel as well as outside attorneys, and posted reserves
reflect its best estimates of ultimate claim costs. Claims administration for
the assumed portion of the Company's A&E exposures is handled by the claims
departments of unrelated primary or ceding reinsurance companies. While the
Company performs periodic reviews of certain claim files managed by third
parties, the overall A&E reserves it establishes respond to the paid claim and
case reserve activity reported to the Company as well as available industry
statistical data such as survival ratios. Such ratios represent the number of
years' average paid losses for the three or five most recent calendar years that
are encompassed by an insurer's A&E reserve level at any point in time.
According to this simplistic appraisal of an insurer's A&E loss reserve level,
Old Republic's average five year paid loss survival ratios stood at 5.9 years
(gross) and 6.8 years (net of reinsurance) as of December 31, 2021 and 6.3 years
(gross) and 7.1 years (net of reinsurance) as of December 31, 2020. Fluctuations
in this ratio between years can be caused by the inconsistent pay out patterns
associated with these types of claims. Incurred net losses for A&E claims have
averaged .3% of General Insurance net incurred losses for the five years ended
December 31, 2021.

A summary of reserve activity, including estimates for IBNR, relating to A&E
complaints to December 31, 2021 and 2020 is as follows:

                                       36
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     December 31:                                             2021                     2020
                                                        Gross        Net         Gross        Net
     Asbestosis:
     Reserves at beginning of year                    $  84.7      $ 59.1      $  79.2      $ 58.5
     Loss and loss expenses incurred                     10.2         2.8         17.7         8.2
     Claims and claim adjustment expenses paid           10.0         7.1         12.1         7.5
     Reserves at end of year                             85.0        54.9         84.7        59.1

     Environmental:
     Reserves at beginning of year                       42.8        23.2         47.6        24.8
     Loss and loss expenses incurred                      6.5         4.6           .8         1.7
     Claims and claim adjustment expenses paid           16.3         5.4          5.6         3.2
     Reserves at end of year                             33.0        22.3         42.8        23.2
     Total asbestosis and environmental reserves      $ 118.1      $ 77.2      $ 127.6      $ 82.4


Title Insurance



Summary Operating Results
                                                                                                                               % Change
                                                                                                                      2021                  2020
Years Ended December 31:                                   2021               2020               2019               vs. 2020              vs. 2019
Net premiums and fees earned                           $ 4,404.3          $ 3,286.3          $ 2,736.0                   34.0  %               20.1  %
Net investment income                                       43.8               42.0               41.4                    4.3                   1.3
Claim costs                                                112.9               75.3               67.4                   49.9                  11.8
Sales and general expenses                               3,818.4            2,906.1            2,475.7                   31.4                  17.4

Segmented pretax operating income (loss)               $   515.7          $   344.0          $   230.8                   49.9  %               49.0  %

Claim ratio                                                  2.6  %             2.3  %             2.5  %
Expense ratio                                               86.7               88.4               90.5
           Combined ratio                                   89.3  %            90.7  %            93.0  %



Premiums & Fees

Title Insurance premium and fee revenues stemming from the Company's direct
operations (which include branch offices of its title insurers and wholly owned
agency subsidiaries) represent approximately 22% of 2021 consolidated title
business revenues. Such premiums are generally recognized as income at the
escrow closing date which approximates the policy effective date. Fee income
related to escrow and other closing services is recognized when the related
services have been performed and completed. The remaining 78% of consolidated
title premium and fee revenues is produced by independent title agents. Rather
than making estimates that could be subject to significant variance from actual
premium and fee production, the Company recognizes revenues from those sources
upon receipt. Such receipts can reflect a three to four month lag relative to
the effective date of the underlying title policy, and are offset concurrently
by production expenses and claim reserve provisions.

The following table shows the percentage distribution of Title insurance premium
and royalty income by source of production:

                           Premium and Fee Production by Source
                                                    Direct        Independent
                                                  Operations      Title Agents
            Years Ended December 31:
            2019                                      24.9  %           75.1  %
            2020                                      24.9              75.1
            2021                                      22.0  %           78.0  %


Title Insurance premium and fee revenues grew by 34.0% and 20.1% in 2021 and
2020, respectively. This performance was attributable to a low interest rate
environment and a robust real estate market. Increased revenue generated on
purchase transactions in both years was partially offset by a decline in
refinance activity beginning in 2021.

                                       37
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Benefits and complaints

Title Insurance claim ratios have remained in the single digits for a number of
years due to a continuation of favorable trends in claims frequency and
severity. Favorable developments of reserves established in prior years
continued to reduce the claim ratios as more fully described in the Executive
Summary of the Management Analysis of Financial Position and Results of
Operations.

RFIG Run-off



Summary Operating Results
                                                                                                                              % Change
                                                                                                                     2021                  2020
Years Ended December 31:                                       2021             2020             2019              vs. 2020              vs. 2019
Net premiums earned                                         $  32.6          $  45.1          $  58.8                  (27.6) %              (23.3) %
Net investment income                                          11.4             15.2             17.3                  (24.7)                (12.0)
Claim costs                                                    (1.7)            36.9             32.3                 (104.7)                 14.1
Pretax operating income (loss)                              $  32.8          $   9.8          $  29.2                  232.3  %              (66.2) %

Claim ratio                                                    (5.3) %          81.7  %          55.0  %
Expense ratio                                                  39.9             30.2             24.8
               Combined ratio                                  34.6  %         111.9  %          79.8  %



RFIG Run-off's mortgage guaranty insurance carriers ceased the underwriting of
new policies effective August 31, 2011 and the existing book of business was
placed in run-off operating mode.

Premiums and fees

RFIG Run-off's mortgage guaranty premiums primarily stem from monthly
installments paid on long-duration, guaranteed renewable insurance policies.
Such premiums are written and earned in the month coverage is effective. With
respect to relatively few annual or single premium policies, earned premiums are
largely recognized on a pro-rata basis over the terms of the policies.

The following tables provide information on production and exposure to associated risks
trends for of the old republic mortgage guarantee insurance operation:

Trends in Premiums and Persistence: Persistence of Net Earned Premiums

        Years Ended December 31:
        2019                                   $               58.8            77.5  %
        2020                                                   45.1            77.6
        2021                                   $               32.6            74.8  %


RFIG The volume of premiums earned in run-off reflected a continuous decline in line with
the decreasing risk in force.

                              Net Risk in Force
                               Traditional
Net Risk in Force By Type:       Primary         Bulk & Other         Total
As of December 31:
2019                          $    2,388.3      $       201.8      $ 2,590.1
2020                               1,842.2              169.0        2,011.2
2021                          $    1,364.9      $       140.4      $ 1,505.4


Breakdown of risks by state of ownership:

                             FL         IL         GA         CA         NJ         MD         NY         TX         PA         NC
      As of December 31:
      2019                  8.9  %     6.7  %     6.1  %     5.7  %     5.0  %     4.9  %     3.9  %     4.8  %     4.1  %     3.8  %
      2020                  9.2        7.0        6.0        5.8        5.3        5.1        4.2        4.5        4.1        3.7
      2021                  9.8  %     7.2  %     6.1  %     5.8  %     5.5  %     5.1  %     4.9  %     4.4  %     4.1  %     3.6  %


                                       38
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Benefits and complaints

Some trends related to average claims related to mortgage guarantees are listed below:

                                  Average Settled Claim        Reported 

Delinquency

                                        Amount (a)            Ratio at End 

of period

      Years Ended December 31:
      2019                       $               49,195                       10.1  %
      2020                                       37,172                       14.2  %
      2021                       $               31,682                       12.4  %


__________

(a) Amounts are in whole dollars.

Total delinquency rates for top ten states (including “other” cases) (b):

                                FL                IL                GA                CA               NJ                MD                NY                TX                PA                NC
As of December 31:
2019                             8.8  %            9.0  %            8.6  %           6.5  %           12.4  %           10.4  %           20.7  %           12.4  %           12.4  %            9.6  %
2020                            13.1              13.8              12.7              9.9              18.2              15.2              25.5              18.7              15.7              13.2
2021                            10.5  %           12.4  %            9.3  %           7.3  %           14.8  %           12.8  %           23.1  %           16.3  %           14.9  %           11.2  %


__________

(b) As determined by the risk prevailing at the December 31, 2021these 10 states
represent approximately 56.5% of the total risk in force.

The RFIG Run-off 2021 claim costs reflect fewer newly reported delinquencies
along with improving trends in cure rates and lower claim severity influenced by
the ongoing economic recovery and continued strength in the real estate market.
The 2020 claim ratio reflects greater reserve provisions due to elevated
delinquencies and the economic impacts of the COVID-19 pandemic.

                                FINANCIAL POSITION



The Company's financial position at December 31, 2021 reflected increases in
assets, liabilities and common shareholders' equity of 9.5%, 8.8% and 11.4%,
respectively, when compared to the immediately preceding year-end. Cash and
invested assets represented 67.3% and 68.1% of consolidated assets as of
December 31, 2021 and 2020, respectively. As of year-end 2021, the cash and
invested asset base increased by 8.3% to $16,818.9.

Investment portfolio


During 2021 and 2020, the Company committed the majority of investable funds to
short to intermediate-term fixed maturity securities and higher yielding
publicly traded large capitalization equity securities. Old Republic continues
to adhere to its long-term policy of investing primarily in investment grade,
marketable securities. At both December 31, 2021 and 2020, nearly all of the
Company's investments consisted of marketable securities. The investment
portfolio contains no significant insurance risk-correlated asset exposures to
real estate, mortgage-backed securities, collateralized debt obligations
("CDO's"), derivatives, hybrid securities, or illiquid private equity and hedge
fund investments. Moreover, the Company does not engage in hedging or securities
lending transactions, nor does it invest in securities whose values are
predicated on non-regulated financial instruments exhibiting amorphous or
unfunded counter-party risk attributes. At December 31, 2021, the Company had no
fixed maturity investments in default as to principal and/or interest.

Short-term maturity investment positions reflect a large variety of seasonal and
intermediate-term factors including current operating needs, expected operating
cash flows, seasonality of quarterly cash flow, debt maturities, and investment
strategy considerations. Accordingly, the future level of short-term investments
will vary and respond to the interplay of these factors and may, as a result,
increase or decrease from current levels.

The Company does not own or utilize derivative financial instruments for the
purpose of hedging, enhancing the overall return of its investment portfolio, or
reducing the cost of its debt obligations. With regard to its equity portfolio,
the Company does not own any options nor does it engage in any type of option
writing. Traditional investment management tools and techniques are employed to
address the yield and valuation exposures of the invested assets base. The fixed
maturity investment portfolio is managed so as to limit various risks inherent
in the bond market. Credit risk is addressed through asset diversification and
the purchase of investment grade securities. Reinvestment rate risk is reduced
by concentrating on non-callable issues, and by taking asset-liability matching
considerations into account. Purchases of mortgage and asset backed securities,
which have variable principal prepayment options, are generally avoided. Market
value risk is limited through the purchase of bonds of intermediate maturity.
The
                                       39
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combination of these investment management practices is expected to produce a
more stable fixed maturity investment portfolio that is not subject to extreme
interest rate sensitivity and principal deterioration.

The fair value of the Company's fixed maturity investment portfolio is
sensitive, however, to fluctuations in the level of interest rates, but not
materially affected by changes in anticipated cash flows caused by any
prepayments. The impact of interest rate movements on the fixed maturity
investment portfolio generally affects net unrealized gains or losses. As a
general rule, rising interest rates enhance currently available yields but
typically lead to a reduction in the fair value of existing fixed maturity
investments. By contrast, a decline in such rates reduces currently available
yields but usually serves to increase the fair value of the existing fixed
maturity investment portfolio. All such changes in fair value of securities are
reflected, net of deferred income taxes, directly in the shareholders' equity
account, and as a separate component of the statements of comprehensive income.
Given the Company's inability to forecast or control the movement of interest
rates, Old Republic sets the maturity spectrum of its fixed maturity securities
portfolio within parameters of estimated liability payouts, and focuses the
overall portfolio on high quality investments. By so doing, Old Republic
believes it is reasonably assured of its ability to hold securities to maturity
as it may deem necessary in changing environments, and of ultimately recovering
their aggregate cost.

Possible future declines in fair values for Old Republic's fixed maturity
portfolio would negatively affect the common shareholders' equity account at any
point in time, but would not necessarily result in the recognition of realized
investment losses.

The following tables present certain information relating to the Company’s property, plant and equipment
maturity and equity portfolios on the dates indicated:

     Fixed Maturity Securities Stratified by Credit Quality (a)

     December 31:                                                    2021         2020
     Aaa                                                             25.1  %      24.6  %
     Aa                                                              12.3         13.1
     A                                                               31.9         33.0
     Baa                                                             28.5         26.5
     Total investment grade                                          97.8         97.2
     All other (b)                                                    2.2          2.8
     Total                                                          100.0  %     100.0  %


__________

(a)  Credit quality ratings referred to herein are a blend of those assigned by
the major credit rating agencies for U.S. and Canadian Governments, Agencies,
Corporates and Municipal issuers, which are converted to the above ratings
classifications.
(b)  "All other" includes non-investment grade or non-rated issuers.

Gross Unrealized Losses Stratified by Industry Concentration for Fixed Maturity Securities

                                                                                                         Gross
                                                                                  Amortized            Unrealized
December 31, 2021                                                                    Cost                Losses

Fixed maturity securities by industrial concentration:

         Utilities                                                               $   390.9           $      14.7
         Consumer Staples                                                            222.2                   6.7
         U.S. Government & Agencies                                                  745.6                   6.6
         Industrial                                                                  315.3                   6.6
         Retail                                                                      166.8                   5.4
         Health Care                                                                 155.2                   5.0
         Technology                                                                  147.1                   3.8
         Other (includes 13 industry groups)                                         940.7                  22.9
                    Total                                                        $ 3,084.2    (c)    $      72.2


__________

(c) Represents 29.6% of the total fixed-maturity portfolio.

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Gross Unrealized Losses Stratified by Industry Concentration for Equity Securities

                                                                                                                 Gross
                                                                                                               Unrealized
December 31, 2021                                                                             Cost               Losses

Equity securities by industrial concentration:

         Energy                                                                            $ 301.0           $      48.8
         Telecom                                                                              72.5                  16.8
         Basic Industry                                                                       37.4                   6.9
         Insurance                                                                            44.7                   5.4
         Other (includes 4 industry groups)                                                  141.0                   6.5
                         Total                                                             $ 596.8    (d)    $      84.5    (e)


__________

(d) Represents 15.9% of the total equity portfolio.
(e) Represents 2.3% of the cost of the total equity portfolio, while
unrealized capital gains represent 43.0% of the equity portfolio.

Gross Unrealized Losses Stratified by Maturity Ranges for All Fixed Maturity Securities

                                                                     Amortized Cost                         Gross Unrealized Losses
                                                                                                                               Non-
                                                                            Non-Investment Grade                            Investment
December 31, 2021                                            All                    Only                   All              Grade Only
Maturity Ranges:
Due in one year or less                                  $   188.3          $               -          $      .1          $         -
Due after one year through five years                        594.0                          -                5.5                    -
Due after five years through ten years                     2,242.1                       33.6               64.7                   .6
Due after ten years                                           59.6                          -                1.7                    -
         Total                                           $ 3,084.2          $            33.6          $    72.2          $        .6


Gross unrealized losses stratified by duration and amount of unrealized losses for All Fixed Maturity Securities

                                                                                                Amount of Gross Unrealized Losses
                                                                             Less than             20% to                                  Total Gross
                                                                              20% of                50%               More than            Unrealized
December 31, 2021                                                              Cost               of Cost            50% of Cost              Loss
Number of Months in Unrealized Loss Position:
Fixed Maturity Securities:
         One to six months                                                $       12.1          $       -          $          -          $       12.1
         Seven to twelve months                                                   49.6                  -                     -                  49.6
         More than twelve months                                                  10.3                  -                     -                  10.3
                      Total                                               $       72.2          $       -          $          -          $       72.2

Number of Issues in Unrealized Loss Position:
Fixed Maturity Securities:
         One to six months                                                         208                  -                     -                   208
         Seven to twelve months                                                    211                  -                     -                   211
         More than twelve months                                                    32                  -                     -                    32
                      Total                                                        451                  -                     -                   451    (f)


__________

(f)  At December 31, 2021, the number of issues in an unrealized loss position
represent 23.8% of the total number of such fixed maturity issues held by the
Company.
                                       41
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Distribution by age of Fixed maturity securities

December 31:                                                                                                            2021                  2020

Maturity ranges:

               Due in one year or less                                                                                     11.7  %                9.8  %
               Due after one year through five years                                                                       49.7                  57.0
               Due after five years through ten years                                                                      37.6                  31.4
               Due after ten years through fifteen years                                                                     .9                   1.7
               Due after fifteen years                                                                                       .1                    .1
                                    Total                                                                                 100.0  %              100.0  %

Average Maturity in Years                                                                                                   4.4                   4.3
Duration (g)                                                                                                                4.0                   3.8


___________

(g)  Duration is used as a measure of bond price sensitivity to interest rate
changes. A duration of 4.0 as of December 31, 2021 implies that a 100 basis
point parallel increase in interest rates from current levels would result in a
possible decline in the fair value of the fixed maturity investment portfolio of
approximately 4.0%.

Cash and capital resources


The parent holding company meets its liquidity and capital needs principally
through dividends and interest on intercompany financing arrangements paid by
its subsidiaries. The insurance subsidiaries' ability to pay cash dividends to
the parent company is generally restricted by law or subject to approval of the
insurance regulatory authorities. The Company can receive up to $982.0 in
ordinary dividends from its subsidiaries in 2022 without the prior approval of
regulatory authorities. The liquidity achievable through such permitted dividend
payments is sufficient to cover the parent holding company's currently expected
cash outflows represented mostly by interest, reasonably anticipated cash
dividend payments to shareholders, modest operating expenses, and the near-term
capital needs of its operating subsidiaries.

Old Republic's total capitalization of $8,481.7 at December 31, 2021 consisted
of debt of $1,588.5 and common shareholders' equity of $6,893.2. Changes in the
common shareholders' equity account reflect primarily net income excluding net
investment gains (losses), realized and unrealized gains (losses), and dividend
payments to shareholders for the year then ended.

Old Republic has paid a cash dividend without interruption since 1942 (80
years), and it has raised the annual cash dividend payment for each of the past
40 years. The dividend rate is reviewed and approved by the Board of Directors
on a quarterly basis each year. In establishing each year's cash dividend rate
the Company does not follow a strict formulaic approach. Rather, it favors a
gradual rise in the annual dividend rate that is largely reflective of long-term
consolidated operating earnings trends. Accordingly, each year's dividend rate
is set judgmentally in consideration of such key factors as the dividend paying
capacity of the Company's insurance subsidiaries, the trends in average annual
earnings for the five to ten most recent calendar years, and management's
long-term expectations for the Company's consolidated business and its
individual operating subsidiaries. The Company's Board of Directors declared
special cash dividends of $1.50 per share in August 2021 (paid on October 6,
2021) and $1.00 per share in December 2020 (paid on January 15, 2021) and
September 2019 (paid on September 16, 2019).

Under state insurance regulations, the Company's three mortgage guaranty
insurance subsidiaries are required to hold minimum amounts of capital based on
specified formulas. Since the Company's mortgage insurance subsidiaries have
discontinued writing new business the risk-to-capital ratio considerations are
therefore no longer of consequence.

The main mortgage insurance subsidiaries of the Company have requested and obtained
the approval of the North Carolina Department of Insurance pay extraordinary
dividends amounting to $100.0 in 2021.

other assets


Substantially all of the Company's receivables are current. Reinsurance
recoverable balances on paid or estimated unpaid losses are deemed recoverable
from solvent reinsurers or have otherwise been reduced by allowances for
estimated credit losses. Deferred policy acquisition costs are estimated by
taking into account the direct costs relating to the successful acquisition of
new or renewal insurance contracts and evaluating their recoverability on the
basis of recent trends in claims costs.

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Contractual obligations

The following table shows some information about required reports
contractual obligations from December 31, 2021:

                                                              2023 and           2025 and           2027 and
                                             2022               2024               2026              After               Total
Contractual Obligations:
Debt                                     $       -          $   400.0          $   550.0          $   650.0          $  1,600.0
Interest on Debt                              65.8              131.6               92.6              613.1               903.3
Operating Leases                              61.6               96.0               59.1               91.7               308.5
Pension Benefits Contributions (a)               -                  -                  -                  -                   -
Claim & Claim Expense Reserves (b)         2,882.3            2,789.3            1,616.3            4,137.5            11,425.5
Total                                    $ 3,009.8          $ 3,417.0          $ 2,318.1          $ 5,492.4          $ 14,237.4


__________

(a)  Represents estimated minimum funding of contributions for the Old Republic
International Salaried Employees Retirement Plan. Funding of the plan is
dependent on a number of factors including actual performance versus actuarial
assumptions made at the time of the actuarial valuation, as well as the
maintenance of certain funding levels relative to regulatory requirements.
(b)  Amounts are reported gross of reinsurance. As discussed herein with respect
to the nature of loss reserves and the estimating process utilized in their
establishment, the Company's loss reserves do not have a contractual maturity
date. Estimated gross loss payments are based primarily on historical claim
payment patterns, are subject to change due to a wide variety of factors, do not
reflect anticipated recoveries under the terms of reinsurance contracts, and
cannot be predicted with certainty. Actual future loss payments may differ
materially from the current estimates shown in the table above.

Reinsurance programs


In order to maintain premium production within its capacity and limit maximum
losses for which it might become liable under its policies, Old Republic, as is
common practice in the insurance industry, may cede all or a portion of its
premiums and related liabilities on certain classes of insurance, individual
policies, or blocks of business to other insurers and reinsurers.

The Company does not anticipate any significant changes in its reinsurance offer
programs in 2022.

The following table presents the General insurance Passives
reinsured by its top ten reinsurers in December 31, 2021.

                                                                                                                                                                         % of Total
                                                                                       A.M.               Reinsurance Recoverable                 Total                 Consolidated
                                                                                       Best              on Paid            on Claim             Exposure                 Reinsured
Reinsurer                                                                             Rating             Claims             Reserves           to Reinsurer              Liabilities
      Day One Insurance, Inc.                                              

Not rated $ – $598.8 $598.8

                        14.2  %
      Archway Insurance, Ltd.                                                        Unrated                 2.5              395.6                  398.2                         9.4
      Hannover Ruckversicherungs                                                        A+                  11.4              333.2                  344.6                         8.2
      Munich Re America, Inc.                                                           A+                  20.6              253.2                  273.8                         6.5
      Summit Insurance, Ltd.                                                         Unrated                   -              170.3                  170.4                         4.0
      AXIS Reinsurance Company                                                          A                    2.2              162.6                  164.8                         3.9
      Swiss Reinsurance America Corporation                                             A+                  14.4              115.5                  129.9                         3.1
      Transatlantic Reinsurance Company                                                 A+                   5.4              117.0                  122.5                         2.9
      Partner Reinsurance Company of the U.S.                                           A+                   1.9              117.5                  119.5                         2.8
      Endurance Assurance Corporation                                      
            A+                   1.1              115.5                  116.6                         2.8
                                                                                                      $     59.9          $ 2,379.7          $     2,439.6                        57.7  %



Reinsurance recoverable asset balances represent amounts due from or credited by
assuming reinsurers for paid and unpaid claims and premium reserves. Such
reinsurance balances recoverable from non-admitted foreign and certain other
reinsurers such as captive insurance companies owned by assureds or business
producers, as well as similar balances or credits arising from policies that are
retrospectively rated or subject to assureds' high deductible retentions are
substantially collateralized by irrevocable letters of credit, securities, and
other financial instruments. Old Republic evaluates on a regular basis the
financial condition of its assuming reinsurers and assureds who purchase its
retrospectively rated or high deductible policies. Allowances for estimated
credit losses are recognized
                                       43
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since reinsurance, retrospectively rated and self-insured deductible policies
and contracts do not exempt Old Republic of its direct obligations towards
policyholders or their dependents.

Old Republic's reinsurance practices with respect to portions of its business
also result from its desire to bring its sponsoring organizations and customers
into some degree of joint venture or risk sharing relationship. The Company may,
in exchange for a ceding commission, reinsure up to 100% of the underwriting
risk, and the premium applicable to such risk, to commercial institutions
generally whose customers are insured by Old Republic, or individual customers
who have formed captive insurance companies. The ceding commissions received
compensate Old Republic for performing the direct insurer's functions of
underwriting, actuarial, claim settlement, loss control, legal, reinsurance, and
administrative services to comply with local and federal regulations, and for
providing appropriate risk management services.

Remaining portions of Old Republic's business are reinsured in most instances
with independent insurance or reinsurance companies pursuant to excess of loss
agreements. Except as noted in the following paragraph, reinsurance protection
on property and liability coverages generally limits the net loss on most events
to a maximum of: $5.2 for workers' compensation; $7.0 for commercial automobile
(mostly trucking) liability; $7.0 for general liability; $12.0 for executive
protection (directors & officers and errors & omissions); $2.0 for aviation; and
$6.0 for property coverages. Title insurance risk assumptions are generally
limited to a maximum of $500.0 as to any one policy. The vast majority of title
policies issued, however, carry exposures of less than $1.0. The average direct
primary mortgage guaranty exposure is (in whole dollars) $37,000 per insured
loan.

Since January 1, 2005, the Company has had maximum treaty reinsurance coverage
of up to $200.0 for its workers' compensation exposures. Pursuant to regulatory
requirements, however, all workers' compensation primary insurers such as the
Company remain liable for unlimited amounts in excess of reinsured limits. Other
than the substantial concentration of workers' compensation losses caused by the
September 11, 2001 terrorist attack on America, to the best of the Company's
knowledge there had not been a similar accumulation of claims in a single
location from a single occurrence prior to that event. Nevertheless, the
possibility continues to exist that non-reinsured losses could, depending on a
wide range of severity and frequency assumptions, aggregate several hundred
million dollars to an insurer such as the Company. Such aggregation of losses
could occur in the event of a catastrophe such as an earthquake that could lead
to the death or injury of a large number of persons concentrated in a single
facility such as a high rise building.

As a result of the September 11, 2001 terrorist attack on America, the
reinsurance industry eliminated coverage from substantially all contracts for
claims arising from acts of terrorism. Primary insurers like the Company thus
became fully exposed to such claims. Late in 2002, the Terrorism Risk Insurance
Act of 2002 (the "TRIA") was signed into law, immediately establishing a
temporary federal reinsurance program administered by the Secretary of the
Treasury. The program applied to insured commercial property and casualty losses
resulting from an act of terrorism, as defined in the TRIA. Congress extended
and modified the program in late 2005 through the Terrorism Risk Insurance
Revision and Extension Act of 2005 (the "TRIREA"). TRIREA expired on December
31, 2007. Congress enacted a revised program in December 2007 through the
Terrorism Risk Insurance Program Reauthorization Act (the "TRIPRA") of 2007. The
TRIPRA has been extended on several occasions, most recently on December 20,
2019 for seven years.

The TRIA automatically voided all policy exclusions which were in effect for
terrorism related losses and obligated insurers to offer terrorism coverage with
most commercial property and casualty insurance lines. The TRIREA revised the
definition of "property and casualty insurance" to exclude commercial
automobile, burglary and theft, surety, professional liability and farm owners
multi-peril insurance. TRIPRA did not make any further changes to the definition
of property and casualty insurance, however, it did include domestic acts of
terrorism within the scope of the program. Although insurers are permitted to
charge an additional premium for terrorism coverage, insureds may reject the
coverage. Under TRIPRA, the program's protection is not triggered for losses
arising from an act of terrorism until the industry first suffers losses in
excess of a prescribed aggregate deductible during any one year. The program
deductible trigger was $200.0 for 2021. Once the program trigger is met, the
program will be responsible for a fixed percentage of the Company's terrorism
losses that exceed its deductible which ranges from 85% for 2015 and declined by
one percentage point per year until it reached 80% in 2020. The Company's
deductible amounts to 20% of direct earned premium on eligible property and
casualty insurance coverages. The Company currently reinsures limits on a treaty
basis of $195.0 in excess of $5.0 for claims arising from certain acts of
terrorism for casualty clash and catastrophe workers' compensation liability
insurance coverages. The Company also purchases facultative reinsurance on
certain accounts in excess of $200.0 to manage the Company's net exposures.

                          CRITICAL ACCOUNTING ESTIMATES



The Company's annual financial statements incorporate a large number and types
of estimates relative to matters which are highly uncertain at the time the
estimates are made. The estimation process required of an insurance enterprise
such as Old Republic is by its very nature highly dynamic inasmuch as it
necessitates a continuous evaluation, analysis, and quantification of factual
data as it becomes known to the Company. As a result, actual experienced
outcomes can differ from the estimates made at any point in time and thus affect
future periods' reported revenues, expenses, net income or loss, and financial
condition.

Changes in estimates generally result from altered circumstances, the continuum
of newly emerging information and its effect on past assumptions and judgments,
the effects of securities markets valuations, and changes in inflation rates and
future economic conditions beyond the Company's control. As a result, Old
Republic cannot predict,
                                       44
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quantify or guarantee the likely impact that likely changes in estimates
have on its future financial condition or results of operations.

Old Republic believes that its most critical accounting estimates relate to
the establishment of provisions for claims and claims settlement expenses and the
recoverability of outstanding losses reinsured. The main assumptions and
methods used to establish these estimates can be summarized as follows:

(a) Establishment of provisions for claims and claims settlement expenses

The Company's reserves for losses and loss adjustment expenses represents the
accumulation of estimates of ultimate losses payable, including incurred but not
reported losses and loss adjustment expenses. The establishment of claim
reserves by the Company's insurance subsidiaries is a reasonably complex and
dynamic process influenced by a large variety of factors as further discussed
below. Consequently, reserves established are a reflection of the opinions of a
large number of persons, of the application and interpretation of historical
precedent and trends, of expectations as to future developments, and of
management's judgment in interpreting all such factors. At any point in time,
the Company is exposed to the possibility of higher or lower than anticipated
claim costs and the resulting changes in estimates are recorded in operations of
the periods during which they are made. Increases to prior reserve estimates are
often referred to as unfavorable development whereas any changes that decrease
previous estimates of the Company's ultimate liability are referred to as
favorable development.

Most of Old Republic's consolidated claim and related expense reserves stem from
its General Insurance business. At December 31, 2021, such reserves accounted
for 93.7% and 90.2% of consolidated gross and net of reinsurance reserves,
respectively, while similar reserves at December 31, 2020 represented 93.5% and
90.1% of the respective consolidated amounts.

The Company's reserve setting process reflects the nature of its insurance
business and the operationally decentralized basis upon which it is conducted.
Old Republic's General Insurance operations encompass a large variety of
coverages or classes of commercial insurance; it has negligible exposure to
personal insurance coverages such as homeowners or private passenger automobile
insurance that exhibit wide diversification of risks, significant frequency of
claim occurrences, and high degrees of statistical credibility. Consequently,
the wide variety of policies issued and commercial insurance customers served
require that loss reserves be analyzed and established in the context of the
unique or different attributes of each block or class of business produced by
the Company. For example, accident liability claims emanating from insured
trucking companies or from general aviation customers become known relatively
quickly, whereas claims of a general liability nature arising from the building
activities of a construction company may emerge over extended periods of time.
Similarly, claims filed pursuant to errors and omissions or directors and
officers' liability coverages are usually not prone to immediate evaluation or
quantification inasmuch as many such claims may be litigated over several years
and their ultimate costs may be affected by judge or jury verdicts.
Approximately 90% of the General Insurance's claim reserves stem from liability
insurance coverages for commercial customers which typically require more
extended periods of investigation and at times protracted litigation before they
are finally settled. As a consequence of these and other factors, Old Republic
does not utilize a single, overarching loss reserving approach.

The Company prepares periodic analyses of its loss reserve estimates for its
significant insurance coverages. It establishes point estimates for most losses
on an insurance coverage line-by-line basis for individual subsidiaries,
sub-classes, individual accounts, blocks of business or other unique
concentrations of insurance risks such as directors and officers' liability,
that have similar attributes. Actuarially or otherwise derived ranges of reserve
levels are not utilized as such in setting these reserves. Instead the reported
reserves encompass the Company's best point estimates at each reporting date and
the overall reserve level at any point in time therefore represents the
compilation of a very large number of reported reserve estimates and the results
of a variety of formula calculations largely driven by analysis of historical
data. Favorable or unfavorable developments of prior year reserves are
implicitly covered by the point estimates incorporated in total reserves at each
balance sheet date. The Company does not project future variability or make an
explicit provision for uncertainty when determining its best estimate of loss
reserves. Over the most recent decade actual incurred losses have developed
within a reasonable range of their original estimates.

Aggregate loss reserves consist of liability estimates for claims that have been
reported ("case") to the Company's insurance subsidiaries and reserves for
claims that have been incurred but not yet reported ("IBNR") or whose ultimate
costs may not become fully apparent until a future time. Additionally, the
Company establishes unallocated loss adjustment expense reserves for loss
settlement costs that are not directly related to individual claims. Such
reserves are based on prior years' cost experience and trends, and are intended
to cover the unallocated costs of claim departments' administration of case and
IBNR claims over time.

A large variety of statistical analyses and formula calculations are utilized to
provide for IBNR claim costs as well as additional costs that can arise from
such factors as monetary and social inflation, changes in claims administration
processes, changes in reinsurance ceded and recoverability levels, and expected
trends in claim costs and related ratios. Typically, such formulas take into
account link ratios that represent prior years' patterns of incurred or paid
loss trends between succeeding years, or past experience relative to
progressions of the number of claims reported over time and ultimate average
costs per claim.

Overall, reserves pertaining to several hundred large individual commercial
insurance accounts that exhibit sufficient statistical credibility, and at times
may be subject to retrospective premium rating plans or the utilization of
varying levels or types of self-insured retentions through captive insurers and
similar risk management mechanisms are established on an account by account
basis using case reserves and applicable formula-driven methods. Large
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account reserves are usually set and analyzed for groups of coverages such as
workers' compensation, commercial automobile (mostly trucking) and general
liability that are typically underwritten jointly for many customers. For
certain long-tail categories of insurance such as retained or assumed excess
liability or excess workers' compensation, officers and directors' liability,
and commercial umbrella liability relative to which claim development patterns
are particularly long, more volatile, and immature in their early stages of
development, the Company judgmentally establishes the most current accident
years' loss reserves on the basis of expected claim ratios. Such expected claim
ratios typically reflect currently estimated claim ratios from prior accident
years, adjusted for the effect of actual and anticipated rate changes, actual
and anticipated changes in coverage, reinsurance, mix of business, and other
anticipated changes in external factors such as trends in loss costs or the
legal and claims environment. Expected claim ratios are generally used for the
two to five most recent accident years depending on the individual class or
category of business. As actual claims data emerges in succeeding interim and
annual periods, the original accident year claim ratio assumptions are validated
or otherwise adjusted sequentially through the application of statistical
projection techniques such as the Bornhuetter/Ferguson method which utilizes
data from the more mature experience of prior years to arrive at a likely
indication of more recent years' loss trends and costs.

Title insurance and related escrow services loss and loss adjustment expense
reserves are established as point estimates to cover the projected settlement
costs of known as well as IBNR losses related to premium and escrow service
revenues of each reporting period. Reserves for known claims are based on an
assessment of the facts available to the Company during the settlement process.
The point estimates covering all claim reserves take into account IBNR claims
based on past experience and evaluations of such variables as changing trends in
the types of policies issued, changes in real estate markets and interest rate
environments, and changing levels of loan refinancing, all of which can have a
bearing on the emergence, number, and ultimate costs of claims.

RFIG Run-off mortgage guaranty insurance reserves for unpaid claims and claim
adjustment expenses are recognized only upon an instance of default, defined as
an insured mortgage loan for which two or more consecutive monthly payments have
been missed. Loss reserves are based on statistical calculations that take into
account the number of reported insured mortgage loan defaults as of each balance
sheet date, as well as experience-based estimates of loan defaults that have
occurred but have not as yet been reported. Further, the loss reserve estimating
process takes into account a large number of variables including trends in claim
severity, potential salvage recoveries, expected cure rates for reported loan
delinquencies at various stages of default, the level of coverage rescissions
and claims denials due to material misrepresentation in key underwriting
information or non-compliance with prescribed underwriting guidelines, and
management judgments relative to future employment levels, housing market
activity, and mortgage loan interest costs, demand, and extensions.

The Company has the legal right to rescind mortgage insurance coverage
unilaterally as expressly stated in its policy. Moreover, two federal courts
that have considered that policy wording have each affirmed that right.
According to the policy, if any of those representations are materially false or
misleading with respect to a loan, the Company has the right to cancel or
rescind coverage for that loan retroactively to commencement of the coverage.

As discussed above, the reserves for losses and related loss adjustment expenses
are based on a wide variety of factors and calculations. Among these the Company
believes the most critical are:

•The establishment of expected claim ratios for at least the two to five most
recent accident years, particularly for long-tail coverages as to which
information about covered losses emerges and becomes more accurately
quantifiable over long periods of time. Long-tail coverages generally include
workers' compensation, commercial automobile (mostly trucking) liability,
general liability, errors and omissions and directors and officers' liability,
as well as title insurance. Gross loss reserves related to such long-tail
coverages ranged between 94.4% and 95.2%, and averaged 94.8% of gross
consolidated claim reserves as of the three most recent year ends. Net of
reinsurance recoverables, such reserves ranged between 94.3% and 95.0% and
averaged 94.6% as of the same dates.

•Loss trends that are considered when establishing the above noted expected
claim ratios which take into account such variables as: judgments and estimates
relative to premium rate trends and adequacy, current and expected interest
rates, current and expected social and economic inflation trends, and insurance
industry statistical claim trends. The Company applies these expected claim
ratios to earned premiums when estimating the periodic reserve for losses and
loss adjustment expenses.

• Loss development factors, expected loss ratios and average loss costs, all
that are based on company and/or industry statistics may also be used to
reported and unreported project losses for each accounting period.

Volatility of reserve estimates and sensitivity

There is a great deal of uncertainty in the estimates of loss and loss
adjustment expense reserves, and unanticipated events can have both a favorable
or unfavorable impact on such estimates. The Company believes that the factors
most responsible, in varying and continually changing degrees, for such
favorable or unfavorable development are as follows:

General Insurance net claim reserves can be affected by lower than expected
frequencies of claims incurred but not reported, the effect of reserve discounts
applicable to workers' compensation claims, higher than expected severity of
litigated claims in particular, governmental or judicially imposed retroactive
conditions in the settlement of claims such as noted elsewhere in this document
in regard to black lung disease claims, greater than anticipated
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inflation rates applicable to repairs and the medical benefits portion of
claims, and a higher than expected IBNR due to the slowdown and high volatility
emergence schemes applicable to certain types of claims such as those resulting from
litigation, assumed reinsurance or A&E claims.

Title insurance loss reserve levels may be adversely affected by such
developments such as a reduction in loan refinancing activity, the effect of which may be
lengthen the period that securities policies remain exposed to loss
emergence. These reserve levels may also be affected by reductions either
the land values ​​or the volume of transactions which, under the
speculative nature of certain real estate developments, may lead to an increase
fraud, embezzlement or privileges of mechanics.

RFIG Run-off net claim reserve levels can be influenced adversely by several
factors. These include changes in the mix of insured business toward loans that
have a higher probability of default, increases in the average risk per insured
loan, the levels of estimated rescission and claim denial activity, the
deterioration of regional or national economic conditions leading to a reduction
in borrowers' income and thus their ability to make payments on outstanding
loans, and reductions in housing values and/or increases in housing supply that
can raise the rate at which defaults evolve into claims and affect their overall
severity.

With respect to Old Republic's small life and accident insurance operations,
reserve adequacy may be impacted adversely by greater than anticipated medical
care cost inflation as well as greater than expected frequency and severity of
claims. In life insurance, as in general insurance, concentrations of insured
lives coupled with a catastrophic event would represent the Company's largest
exposure.

Consolidated claim costs developed favorably in the three most recent calendar
years. This development had the consequent effect of reducing consolidated
annual loss costs for the three most recent years within a range of 1.2% and
8.1%, or by an average of approximately 4.2% per annum. As a percentage of each
of these years' consolidated earned premiums and fees, the favorable
developments have ranged between .5% and 2.7%, and have averaged 1.6%.

The consolidated cumulative development on prior year loss reserves over the
past ten years through December 31, 2021 has ranged from 2.4% unfavorable in
2011 to 10.7% favorable in 2016 and averaged 5.6% favorable. Although management
does not have a practical business reason for making projections of likely
outcomes of future loss developments, its analysis and evaluation of Old
Republic's existing business mix, the natural offset effects of its diverse
coverage, current aggregate loss reserve levels, and loss development patterns
suggests a reasonable likelihood that 2021 year-end loss reserves could
ultimately develop within a range of +/- 7.5%. The most significant factors
impacting the potential reserve development for each of the Company's insurance
segments is discussed above. Old Republic has generally experienced favorable
overall loss developments for the latest ten-year period. While General
Insurance has experienced unfavorable developments of previously established
reserves during three of the last five years, the current analysis of loss
development factors and economic conditions influencing the Company's insurance
coverages point to a position of reserve adequacy. In management's opinion, the
other segments' loss reserve development patterns (most notably those associated
with title and mortgage insurance) show greater variability due to changes in
economic conditions which cannot be reasonably anticipated. Consequently,
management believes that using a 7.5% potential range of reserve development
provides a reasonable benchmark for a sensitivity analysis of the Company's
consolidated reserves as of December 31, 2021.

(b) Recoverability of outstanding claims reinsured

Assets consisting of balance sheet date reserve estimates recoverable from
assuming reinsurers in future periods as gross losses are settled and paid, are
established at the same time as the gross losses are recorded as reserves.
Accordingly, these assets are subject to the same estimation processes and
valuations as the related gross amounts as is discussed above. As of the three
most recent year ends, outstanding reinsurance recoverable balances ranged
between 32.7% and 36.1% and averaged 34.3% of the related gross reserves. See
Note 5 for further discussion regarding recoverability of the Company's
reinsurance balances.

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                                OTHER INFORMATION

Reference is made here to the “Business Segment Information” appearing
elsewhere here.

Historical data pertaining to the operating results, liquidity, and other
performance indicators applicable to an insurance enterprise such as Old
Republic are not necessarily indicative of results to be achieved in succeeding
years. In addition to the factors cited below, the long-term nature of the
insurance business, seasonal and annual patterns in premium production and
incidence of claims, changes in yields obtained on invested assets, changes in
government policies and free markets affecting inflation rates and general
economic conditions, and changes in legal precedents or the application of law
affecting the settlement of disputed and other claims can have a bearing on
period-to-period comparisons and future operating results. It is possible that
Old Republic's operating results, business and financial condition could be
adversely affected in subsequent periods by future economic disruptions caused
by the COVID-19 pandemic and the associated governmental responses.

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 Old Republic's General Insurance segment, its
results can be particularly affected by the level of market competition, which
is typically a function of available capital and expected returns on such
capital among competitors, the levels of investment yields and inflation rates,
and periodic changes in claim frequency and severity patterns caused by natural
disasters, weather conditions, accidents, illnesses, work-related injuries, and
unanticipated external events. Title Insurance and RFIG Run-off results can be
affected by similar factors, and by changes in national and regional housing
demand and values, the availability and cost of mortgage loans, employment
trends, and default rates on mortgage loans. Life and accident insurance
earnings can be affected by the levels of employment and consumer spending,
changes in mortality and health trends, and alterations in policy lapsation
rates. At the parent holding company level, operating earnings or losses are
generally reflective of the amount of debt outstanding and its cost, interest
income on temporary holdings of short-term investments, and period-to-period
variations in the costs of administering the Company's widespread operations.

General Insurance, Title Insurance, Corporate & Other, and RFIG Run-off maintain
customer information and rely upon technology platforms to conduct their
business. As a result, each of them and the Company are exposed to cyber risk.
Many of the Company's operating subsidiaries, maintain separate IT systems which
are deemed to reduce enterprise-wide risks of potential cybersecurity incidents.
However, given the potential magnitude of a significant breach, the Company
continually evaluates on an enterprise-wide basis its IT hardware, security
infrastructure and business practices to respond to these risks and to detect
and remediate in a timely manner significant cybersecurity incidents or business
process interruptions.

A more detailed list and discussion of the risks and other factors that
affect the company’s risk insurance activities are included in Part I, point
1A – Risk factors, from this annual report to Securities and Exchange
commission
which is specifically incorporated herein by reference.

Any forward-looking statements or commentaries speak only as of their dates. Old
Republic undertakes no obligation to publicly update or revise any and all such
comments, whether as a result of new information, future events or otherwise,
and accordingly they may not be unduly relied upon.
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