Old Republic Reports 14th Straight Earnings Increase

Chicago-based insurer Old Republic International Corp. reported greater earnings for this year’s third quarter and first nine months.

Net income in this year’s third quarter totaled $119.9 million, or 98 cents per share, versus $96.3 million, or 79 cents per share, for the year-ago quarter. Net operating income, which excludes realized investment gains or losses, was $116.9 million, or 96 cents per share in the quarter compared to $98.3 million, or 81 cents per share, in the same year-ago period.

For the first nine months of 2003, net income was $345.8 million, or $2.84 per share, versus $299.4 million, or $2.46 per share, for the same period of 2002. Net operating income for the first nine months of 2003 was $339.0 million, or $2.78 per share, compared to $292.3 million, or $2.40 per share, in the same period of 2002.

In last year’s first nine months, tax expense was reduced and net earnings were enhanced by tax and related interest recoveries of $10.9 million, or 9 cents per share, due to the favorable resolution in 2002′s second quarter of tax issues dating back to the Company’s 1987 tax return. Absent this non-recurring credit for 2002, net income and net operating income per share for the first nine months of 2003 would reflect growth rates of 19.8 percent and 20.3 percent, respectively. Expense recognition of stock options granted in 2003 reduced earnings per share by less than 1 cent per share in this year’s third quarter and first nine months.

Old Republic’s earnings were keyed by growth in its general and title insurance groups, the company said in a statement.