AM Best Confirms Credit Ratings of Old Republic International Corporation Subsidiaries


OLDWICK, NJ–(BUSINESS WIRE)–AM Best Affirmed Financial Strength Rating (FSR) of A+ (Superior) and Issuer Long-Term Credit Ratings (Long-Term ICR) of “aa-” (Superior) of Old Insurance Company Members Republic (Old Republic). At the same time, AM Best confirmed the FSR of A+ (superior) and long-term ICRs of “aa-” from Old Republic National Title Insurance Company (Tampa, FL) and American Guaranty Title Insurance Company (Oklahoma City, OK) ( collectively referred to as Old Republic Title Insurance Group [ORTIG]). At the same time, AM Best confirmed the FSR of A (Excellent) and the long-term ICR of “a+” (Excellent) of Old Republic Insurance Company of Canada (Old Republic Canada) (Hamilton, Ontario). Additionally, AM Best confirmed the Old Republic Life Insurance Company (ORL) (Chicago, IL) long-term ICR of B++ (good) and long-term ICR of “bbb+” (good). The outlook for these Credit Ratings (ratings) is stable. All companies are subsidiaries of Old Republic International Corporation [NYSE: ORI].

The ratings of Old Republic, which is considered the primary rating unit of Old Republic International Corporation, reflect the strength of its balance sheet, which AM Best rates as the strongest, as well as its strong operating performance. , its favorable business profile and its appropriate management of business risks. (ERM).

Old Republic is the flagship group of the Old Republic Insurance business and one of the top 35 P&C insurers in the United States. The group is made up of commercial insurance companies that primarily focus on providing liability insurance for specific sectors of the North American economy. Key lines of business include workers’ compensation, commercial auto and general liability. Old Republic benefits from its expertise within the alternative risk transfer market and specialized business segments, as well as historically strong profitability, expertise in its respective individual business specialties and recognized franchises. These positive pricing factors are partially offset by some variability in the evolution of reserves for the prior accident year. Additionally, Old Republic maintains a high exposure to common stocks within its investment portfolio; however, it remains within established tolerance limits. The company continues to have a very modest exposure to asbestos-related liabilities.

ORTIG’s ratings reflect the strength of its balance sheet, which AM Best rates as the strongest, as well as its adequate operating performance, neutral business profile and appropriate ERM. ORTIG’s ratings also reflect the implicit support the group receives from its position in the Old Republic business and its strategic role within the organization.

ORTIG’s ratings recognize its strong provisioning practices. The majority of ORTIG’s premiums and fees are generated by independent agents. This allows ORTIG to better manage down cycles, as fixed costs are generally lower for this distribution channel. An offsetting pricing factor is the increase in the group’s underwriting leverage metrics due to the rapid growth in premium volume over the past five years. However, AM Best expects ORTIG to continue to generate underwriting and operating results in line with its incumbent competitors, but which contribute significantly to the overall profitability of the Old Republic International Corporation business. , while maintaining the highest level of risk-adjusted results. medium-term capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR). The title group continues to be an integral part of the overall organization, with common branding and talent synergies, as well as complementary ERM programs.

Old Republic Canada’s ratings reflect the strength of its balance sheet, which AM Best rates as very strong, as well as adequate operational performance, neutral business profile and appropriate ERM.

Old Republic Canada’s ratings recognize the synergies gained as a subsidiary of Great West Casualty Company, as well as its accident and health business. The company’s limited product offering and the challenging market environment in Canada partially offset these positive rating factors.

ORL’s ratings reflect the strength of its balance sheet, which AM Best rates as very strong, as well as its marginal operating performance, limited business profile and adequate ERM.

ORL’s ratings also reflect its risk-adjusted capitalization, which is rated as the strongest, as measured by BCAR. The assets invested are of good credit quality, as the portfolio is designed to minimize the risk of credit default rather than to maximize the return. Profits have been positive in recent years. Due to the small size of the reserves, any increase in claims or mortality will cause significant fluctuations in income. Premiums have been declining in recent years as closed-term lump sum premiums run out and workers’ compensation premiums tend to fall. The Company’s business profile consists of a closed block of term life insurance and an actively marketed line of workers’ compensation insurance. Despite its modest size, ORL is strategically important to the organization of the Old Republic.

The FSR of A+ (Superior) and the long-term ICRs of “aa-” (Superior) have been confirmed, each with a stable outlook, for the following members of Old Republic insurance companies:

  • BITCO General Insurance Company

  • BITCO National Insurance Company

  • Great West Casualty Company

  • Manufacturers Alliance Insurance Company

  • Old Republic General Insurance Corporation

  • Old Republic Insurance Company

  • Former Lloyds Republic of Texas

  • Old Republic Bonding Company

  • Union Insurance Company of the Old Republic

  • Manufacturers Compensation Company of Pennsylvania

  • Pennsylvania Manufacturers Association Insurance Company

This press release relates to credit ratings that have been published on AM Best’s website. For all rating information relating to the release and relevant disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Assessment Activity Web page. For more information on the use and limitations of credit rating opinions, please see Best Credit Score Guide. For more information on the proper use of Best’s Credit Ratings, Best’s Performance Ratings, Best’s Preliminary Credit Ratings, and AM Best’s press releases, please see Guide to Proper Use of Best’s Ratings and Reviews.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in more than 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit

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