CHICAGO, Aug. 23, 2018 /PRNewswire/ -- Old
Republic International Corporation (NYSE: ORI) today announced
its Board of Directors took five actions at the regularly scheduled
quarterly meeting.
Quarterly Dividend Increased for 37th Consecutive
Year
The Board declared a quarterly cash dividend of
19.5 cents per share. The dividend is
payable September 14, 2018, to
shareholders of record on September 4,
2018. Subject to Board approval of each quarter's new rate,
the full-year's cash dividend will rise to 78 cents per share compared to 76 cents in 2017.
The higher dividend marks the 37th consecutive year
that Old Republic has boosted its cash dividend, and the
77th year of uninterrupted payments. Mergent's
Dividend Achievers ranks Old Republic among the 100 companies,
out of thousands considered, to post at least 25 consecutive years
of annual dividend growth. The list includes some of the most
iconic names of American industry. Old Republic ranks
63rd and is one of only four publicly held
insurance businesses to merit this distinction. In addition, for
the 10 years ended in 2017, the total market return for ORI's
common stock, with dividends reinvested, grew at a compound annual
rate of 8.75 percent per share versus 8.49 percent for the S&P
500 Index.
Four Directors Confirmed and a New One Added
Four
Class 1 nominees were confirmed as continuing Board members, after
each received a plurality of votes at the Annual Meeting. In
addition, the Board was pleased to appoint Charles J. Kovaleski as an additional Class 3
member. Kovaleski, an attorney, brings extensive general business
experience and knowledge to the Board and management team,
particularly in real estate and title insurance.
Independent Public Accounting Firm Ratified
KPMG LLP
was ratified as Old Republic's independent registered public
accounting firm for 2018. The firm's retention followed a review of
its proposed fee and audit scope for 2018.
"Say on Pay" Advisory Resolution Approved
The
shareholders' advisory vote approved the executive compensation
policies, practices and procedures as set forth in the Company's
proxy statement.
Climate Change Advisory Proposal Rejected
The
shareholders rejected the advisory climate change proposal calling
for more effective board oversight of the Company's policies and
programs addressing the risks and opportunities posed by climate
change and reporting to shareholders concerning steps taken or
planned.
Proxy Access Bylaw Advisory Proposal Acknowledged
The
shareholders' advisory vote approving a proposal for adopting a
so-called proxy access bylaw was acknowledged. As discussed in
ORI's proxy statements, the Board firmly believes in the
combination of its longstanding governance structure which is
tailored to the nature of its business, and in the proven
management of the Company's operations for the long run. This has
led to substantial value creation for: 1) long-term investors,
2) employees as consistent intellectual capital providers and,
most importantly, 3) the policyholders who rely on its
insurance subsidiaries' financial stability and operating
continuity to secure long-term promises of financial indemnity.
The Board believes that the Company's governance policies and
practices are, in the aggregate, appropriately designed and
function effectively to promote and ensure that the business is
managed according to ORI's stated long-term business strategy.
There is no empirical evidence of the potential merits and values
of adopting changes in specific governance and inherently related
management policies or practices. As a result, the Board's business
judgment is to keep the current comprehensive approach in
place.
About Old Republic
Chicago-based Old Republic International
Corporation is one of the nation's 50 largest publicly held
insurance organizations. It is a member of the Fortune 500
listing of America's largest companies.
The Company is organized as a specialized insurance holding
company whose subsidiaries actively market, underwrite, and provide
risk management services for a wide variety of coverages mostly in
the general and title insurance fields. A long-term interest in
mortgage guaranty and consumer credit indemnity coverages has
devolved to a run-off operating mode in recent years. Old
Republic's general insurance business ranks among the nation's 50
largest, while its title insurance operations are the third
largest.
Safe Harbor Statement
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.
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. Of
necessity, 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, variations in mortality and health trends, and changes 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.
A more detailed listing and discussion of the risks and other
factors which affect the Company's risk-taking insurance business
are included in Part I, Item 1A - Risk Factors, of the Company's
2017 Form 10-K Annual Report and Part II, Item 1A - Risk Factors,
of the Company's recent Form 10-Q filings to the Securities and
Exchange Commission, which Items are 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.
For Old Republic's latest news releases and
other corporate documents:
Please visit us at
www.oldrepublic.com
Alternatively, please write or
call:
Investor Relations
Old Republic
International Corporation
307 North Michigan Avenue •
Chicago, IL
60601
312-346-8100
Further
Information Contacts:
|
AT OLD
REPUBLIC:
|
|
AT FINANCIAL
RELATIONS BOARD:
|
A. C. Zucaro:
Chairman & CEO
|
|
Analysts/Investors:
Marilynn Meek
|
(312)
346-8100
|
|
(212)
827-3773
|
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SOURCE Old Republic International Corporation