Old Republic Reports Double-Digit Earnings Growth for First Quarter

April 28, 2005

CHICAGO, /PRNewswire-FirstCall/ --

Financial Highlights
(unaudited; amounts in millions except share data and percentages;
all per-share amounts are stated on a diluted basis)
  Quarters Ended March 31,
  2005  2004 Change
Total Revenues $880.6   $822.4  7.1%
Net Operating Income                              $109.1 $96.6   12.9%
Net Income  $114.3   $106.4      7.4%
Diluted Earnings Per Share:      
Net Operating Income $0.59 $0.52  13.5%
Net Income $0.62 $0.57     8.8%

Old Republic International Corporation (NYSE: ORI), today announced that net operating earnings rose by 12.9 percent in this year's first quarter. The increase stemmed largely from improved performance by the Company's General and Mortgage Guaranty insurance segments. Year-over-year, these two segments generated greater underwriting income, as well as moderate growth of investment income.

Old Republic's consolidated net operating earnings before net realized investment gains, amounted to $109.1 million, or 59 cents per share, for the first quarter of 2005, up from $96.6 million, or 52 cents per share in the same period of 2004. Inclusive of net realized investment gains, net income for this year's first quarter amounted to $114.3 million, or 62 cents per share, versus $106.4 million, or 57 cents per share in the year-ago period. Pretax earnings in last year's first quarter were affected adversely by required non-recurring stock option compensation charges of $5.6 million (or 2 cents per share after tax), representing the expense of a vesting acceleration of stock option costs.

Source: Old Republic

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