Old Republic International Corporation

Today's conference call will be Craig Smitty, President and CEO, Frank Sodaro, Chief Financial Officer, and Carolyn Monroe, President and CEO of Old Republic National Title Insurance Group. Management will make some opening remarks, and then we'll open the line for your questions. At this time, I'd like to turn the call over to Greg. Please go ahead, sir.

All right, Joe. Thank you very much. Well, good afternoon, everyone, and welcome again to Old Republic's fourth quarter and full year 2025 earnings call. In the fourth quarter, we produced $236 million of consolidated pre-tax operating income compared to $285 million. And our consolidated combined ratio was 96% compared to 92.7%. For the full year, we produced $1 billion of consolidated pre-tax operating income, and our consolidated combined ratio was 94.7%. Some other information on 2025, our operating return on beginning equity was 14.1%, and growth in book value per share, including dividends, was 22%. And we think this reflects our strong operating earnings, our higher investment valuations, and our sound capital management strategy. In the fourth quarter, specialty insurance grew net premiums earned by 8.3% over the fourth quarter of 24. And for the full year, grew net premiums earned by 10.9%. And we eclipsed the $5 billion mark for the first time. In the fourth quarter, specialty produced $178 million of pre-tax operating income compared to $228 million. and specialties combined ratio was 97.3 compared to 91.8. For the full year, specialty produced $900 million of pre-tax operating income, another all-time high for us, and specialties combined ratio was 93.2. In the fourth quarter, title grew premium and fees by 12.4% over the fourth quarter of 24, And for the full year, title grew premium and fees by 9.1%. In the fourth quarter, title also produced $65 million of pre-tax operating income compared to 55.4%. And title's combined ratio was 94% compared to 94.4%. For the full year, title produced $140 million of pre-tax operating income, and title's combined ratio was 97.6. Our conservative reserving practices were slow to release prior year reserves, but we react very quickly to increase reserves. We continue to produce favorable prior year loss reserve development in both specialty insurance and title insurance, and Frank will give you a little more color around that topic. So with that, Frank, I'll go ahead and turn the discussion over to you and then please turn things back to me. I'll discuss specialty insurance and then I'll turn things over to Carolyn who will discuss title and then we'll wrap up and open it up for Q&A. So, Frank.

Thank you, Craig, and good afternoon, everyone. This morning we reported net operating income of $185 million for the quarter compared to $227 million last year. On a per share basis, comparable quarter over quarter results were 74 cents compared to 90 cents. Starting with investments, net investment income increased 7.9% in the quarter, primarily as a result of higher yields on the bond portfolio, and to a lesser degree, a larger investment base. Our average reinvestment rate on corporate bonds acquired during the quarter was 4.6%, compared to the average yield rolling off of about 4.2%. The total bond portfolio book yield stands at 4.75% compared to 4.5% at the end of last year. Now, given the portfolio actions taken over the last few years that allowed us to accelerate improvement in the bond portfolio yield, our return of capital initiatives and the current interest rate environment we expect net investment income growth to slow in 2026. Turning now to loss reserves, both specialty insurance and title insurance recognized favorable development in the quarter, leading to a 2.4 percentage point benefit in the consolidated loss ratio compared to 2.9 points last year. Within specialty insurance, workers' comp prior year reserve development was slightly unfavorable in the quarter, as a strong favorable development throughout the book was offset by a prior year reserve increase related to a credit loss on a single large deductible program. Commercial auto, general liability, and property all had solid favorable development in the quarter. Now for the full year, the specialty insurance loss ratio had a benefit of 2.9 points from favorable development, and there were no large pockets of unfavorable development to report. We end the quarter with book value per share of $24.21, which inclusive of the regular and special dividends, equated to an increase of 22% for the full year, resulting primarily from our strong operating earnings and higher investment valuations. In the quarter, we declared nearly $700 million in dividends and repurchased $56 million worth of our shares. This brings total capital return this year to just over $1 billion, and it leaves us with about 850 million remaining in our current repurchase program. I'll now turn the call back over to Craig for a discussion of specialty insurance.