MANAGEMENT ANALYSIS OF FINANCIAL POSITION AND RESULTS OF OPERATIONS Six months ended June 30, 2022 and 2021 ($ in millions, except share data) | Business Insurance

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OVERVIEW


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 .1% of consolidated
operating revenues for the six months ended June 30, 2022 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, many of
which require additional financial statement disclosures and provide related
application guidance. Recent guidance issued by the FASB is summarized further
in the Notes to Consolidated Financial Statements where applicable.

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
generally 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 in Old Republic's
2021 Annual Report on Form 10-K.

The insurance business is distinguished from most others in that the prices
(premiums) charged for most products are set without knowing what the ultimate
loss costs will be. We also can't know exactly when claims will be paid, which
may be many years after a policy was issued or expired. This casts Old Republic
as a risk-taking enterprise managed for the long run. Old Republic therefore
conducts the business with a primary focus on achieving favorable underwriting
results over cycles, and on maintaining a sound financial condition to support
our 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 income 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 with
little regard for quarterly or even annual reporting periods. These time frames
are too short. Management believes results are best evaluated by looking at
underwriting and overall operating performance trends over 10-year intervals.
These likely include one or two economic and/or underwriting cycles. This
provides enough time for these cycles to run their course, for underwriting and
premium rate changes to appear in financial results, and for reserved loss costs
to be quantified with greater certainty.

This management analysis should be read in conjunction with the consolidated report
financial statements and the footnotes attached thereto.

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EXECUTIVE SUMMARY


Old Republic International Corporation reported the following consolidated
results:

OVERALL RESULTS

                                                            Quarters Ended June 30,                                        Six Months Ended June 30,
                                                2022                     2021             % Change                2022                 2021              % Change
Pretax income (loss)                       $     (54.6)               $ 396.0                               $      328.0           $ 1,026.6
Pretax investment gains (losses)                (317.4)                 120.9                                     (172.3)              496.4
Pretax income (loss) excluding
investment gains (losses)                  $     262.8                $ 275.0                 (4.4) %       $      500.4           $   530.2                 (5.6) %

Net income (loss)                          $     (40.1)               $ 316.4                               $      266.1           $   818.5
Net of tax investment gains (losses)            (250.4)                  95.5                                     (135.9)              391.3
Net income (loss) excluding
investment gains (losses)                  $     210.2                $ 220.9                 (4.8) %       $      402.0           $   427.2                 (5.9) %

Combined ratio                                    90.9   %               90.6  %                                    91.4   %            90.8  %

PER DILUTED SHARE

                                                            Quarters Ended June 30,                                        Six Months Ended June 30,
                                                2022                     2021             % Change                2022                 2021              % Change
Net income (loss)                          $      (.13)               $  1.05                               $        .87           $    2.72
Net of tax investment gains (losses)              (.82)                   .32                                       (.45)               1.30
Net income (loss) excluding
investment gains (losses)                  $       .69                $   .73                 (5.5) %       $       1.32           $    1.42                 (7.0) %

NET WORTH (BOOK VALUE)

                                                                                                                June 30,             Dec. 31,
                                                                                                                  2022                 2021              % Change
Total                                                                                                       $    6,393.1           $ 6,893.2                 (7.3) %
Per Common Share                                                                                            $      20.99           $   22.76                 (7.8) %



Old Republic International Corporation reported pretax income, excluding
investment gains (losses), of $262.8 for the quarter and $500.4 for the first
six months of 2022. The decline compared to the 2021 periods is within
expectations, with General Insurance pretax operating income increasing nearly
12%, while the effect of increasing mortgage interest rates reduced Title
Insurance results. Both General Insurance and Title Insurance produced solid
underwriting results that drove a consolidated combined ratio of 90.9% and 91.4%
for the quarter and first six months of 2022, respectively.

Consolidated net premiums and fees earned were relatively consistent for the
quarter, with General Insurance net earned premiums growing 8.8%, offset by a
7.1% decline in Title Insurance net premiums and fees as a result of lower
revenues in both direct and agency operations. For the first six months,
consolidated net premiums and fees earned were up 2.0%, reflecting growth in
General Insurance of 7.4%, partially offset by a 2.3% decline in Title
Insurance. Net investment income increased slightly in both 2022 periods,
reflecting growth in the invested asset base, offset by lower investment yields
earned.

Book value per share was $20.99 as of June 30, 2022, reflecting declining fair
market values in both the fixed income and equity portfolios, partially offset
by operating earnings. With the addition of dividends declared during the first
six months, this was a decrease of 5.8% over year-end 2021.


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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, inclusive of investment gains
(losses), is the measure of total profitability.

In management's opinion, the focus on income excluding investment gains
(losses), also described herein as segment pretax operating income (loss),
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 can mask trends in operating results, because such
realizations are often 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.

FINANCIAL HIGHLIGHTS
                                                          Quarters Ended June 30,                                           Six Months Ended June 30,
SUMMARY INCOME STATEMENTS:                      2022                  2021              % Change                  2022                    2021              % Change
Revenues:
Net premiums and fees earned             $    1,982.3             $ 1,987.3                 (0.2) %       $     3,901.3               $ 3,826.2                  2.0  %
Net investment income                           107.8                 107.6                  0.2                  214.1                   211.9                  1.0
Other income                                     37.6                  37.8                 (0.5)                  73.9                    74.1                 (0.3)
Total operating revenues                      2,127.8               2,132.8                 (0.2)               4,189.4                 4,112.4                  1.9
Investment gains (losses):
Realized from actual transactions and
impairments                                      53.2                   1.0                                       118.5                     8.9

Unrealized from changes in fair value of
equity securities                              (370.7)                119.9                                      (290.9)                  487.4
Total investment gains (losses)                (317.4)                120.9                                      (172.3)                  496.4
Total revenues                                1,810.3               2,253.7                                     4,017.0                 4,608.8
Operating expenses:
Loss and loss adjustment expenses               638.6                 624.9                  2.2                1,246.6                 1,228.3                  1.5
Sales and general expenses                    1,209.6               1,220.6                 (0.9)               2,408.7                 2,330.9                  3.3
Interest and other charges                       16.6                  12.1                 37.1                   33.6                    22.8                 47.3
Total operating expenses                      1,865.0               1,857.7                  0.4  %             3,688.9                 3,582.2                  3.0  %
Pretax income (loss)                            (54.6)                396.0                                       328.0                 1,026.6
Income taxes (credits)                          (14.4)                 79.5                                        61.9                   208.0
Net income (loss)                        $      (40.1)            $   316.4                               $       266.1               $   818.5

COMMON STOCK STATISTICS:
Components of net income (loss) per
share:
Basic net income (loss) excluding
investment gains (losses)                $       0.69             $    0.74                 (6.8) %       $        1.32               $    1.43                 (7.7) %
Net investment gains (losses):
Realized from actual transactions and
impairments                                      0.14                     -                                        0.31                    0.02
Unrealized from changes in fair value of
equity securities                               (0.96)                 0.32                                       (0.75)                   1.28
Basic net income (loss)                  $      (0.13)            $    1.06                               $        0.88               $    2.73
Diluted net income (loss) excluding
investment gains (losses)                $       0.69             $    0.73                 (5.5) %       $        1.32               $    1.42                 (7.0) %
Net investment gains (losses):
Realized from actual transactions and
impairments                                      0.14                     -                                        0.30                    0.02
Unrealized from changes in fair value of
equity securities                               (0.96)                 0.32                                       (0.75)                   1.28
Diluted net income (loss)                $      (0.13)            $    1.05                               $        0.87               $    2.72
Cash dividends on common stock           $       0.23             $    0.22                               $        0.46               $    0.44
Book value per share                                                                                      $       20.99               $   22.59                 (7.1) %



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We believe the information presented in the following table highlights the most
meaningful indicators of ORI's segmented and consolidated financial performance.
The information underscores the performance of our underwriting operations, as
well as our sound investment of the capital and underwriting cash flows from
these operations.

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