Old Republic International Corp's Credit Ratings Affirmed by AM Best

AM Best has confirmed the Financial Strength Rating (FSR) of A+ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICRs) of “aa-” (Superior) for the members of Old Republic Insurance Companies. The affirmations extend to Old Republic National Title Insurance Company and American Guaranty Title Insurance Company, collectively referred to as the Old Republic Title Insurance Group (ORTIG). Additionally, the ratings for Old Republic Life Insurance Company (ORL) and Old Republic Insurance Company of Canada have also been affirmed, with ORL receiving an FSR of A- (Excellent) and Old Republic Canada achieving an FSR of A (Excellent). Notably, the outlook for all these ratings remains stable.

The ratings reflect several key factors that underline Old Republic's financial health. AM Best assesses the overall balance sheet strength of Old Republic as "strongest," a testament to its strong operating performance and favorable business profile. The company showcases an effective enterprise risk management (ERM) approach, which contributes to its resilience in fluctuating market conditions.

The ratings of ORTIG underline its critical position within the Old Republic enterprise. AM Best has highlighted the group's balance sheet strength, also assessed as "strongest," along with adequate operating performance. Importantly, ORTIG benefits from strong reserving practices and continues to demonstrate profitability, which is crucial for its role in the overall profitability of ORI. The group's reliance on independent agents for generating premiums and fees allows for better management of variable expenses, further stabilizing its financial outlook.

The ratings for ORL reflect its very strong balance sheet strength and adequate operating performance. While ORL has experienced a decline in premiums over recent years due to the run-off of closed-term blocks and a decrease in occupational accident premiums, the company still maintains a strategic importance within the Old Republic organization. The risk-adjusted capitalization is assessed at "strongest" levels, although the limited size of reserves poses a risk should claims or mortality rates rise unexpectedly.

Old Republic Insurance Company of Canada also received a favorable rating, with its balance sheet strength categorized as "very strong." Despite facing a challenging market environment and limited product offerings, the company benefits from synergies with Great West Casualty Company and its accident and sickness business. This strategic positioning reinforces its role within the broader Old Republic enterprise.

The reaffirmation of Old Republic International Corporation's credit ratings by AM Best serves as a robust endorsement of the company's financial stability and operational effectiveness. As one of the top 50 property/casualty insurers in the United States, Old Republic continues to navigate the complexities of the insurance market with a strong foundation and strategic foresight. The stable outlook across its subsidiaries indicates a resilient trajectory for the organization, even as it adapts to the evolving dynamics of the insurance landscape.

With its diverse offerings and solid risk management practices, Old Republic remains well-positioned to maintain its competitive edge and profitability in the years to come.