MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL POSITION AND RESULTS OF OPERATIONS Quarters ended March 31, 2022 and 2021 (in thousands and thousands of {dollars}, besides share information)

PREVIEW



This administration evaluation of monetary place and outcomes of operations
pertains to the consolidated accounts of Previous Republic Worldwide Company
("Previous Republic", "ORI", or "the Firm"). The Firm conducts its operations
by way of a lot of regulated insurance coverage firm subsidiaries organized into
three main segments: Common Insurance coverage (property and legal responsibility insurance coverage),
Title Insurance coverage and Republic Monetary Indemnity Group ("RFIG") Run-off. A small
life and accident insurance coverage enterprise, accounting for .1% of consolidated
working revenues for the quarter ended March 31, 2022 and .5% of consolidated
property as of that date, is included throughout the Company & Different caption of this
report.

The consolidated accounts are offered in conformity with the Monetary
Accounting Requirements Board's ("FASB") Accounting Requirements Codification ("ASC")
of accounting rules usually accepted in the US of America
("GAAP"). As a publicly held firm, Previous Republic makes use of GAAP to adjust to
the monetary reporting necessities of the Securities and Trade Fee
("SEC"). Every so often the FASB and the SEC subject varied releases, a lot of
which require extra monetary assertion disclosures and supply associated
software steering. Current steering issued by the FASB is summarized additional
within the Notes to Consolidated Monetary Statements the place relevant.

As a state regulated monetary establishment vested with the general public curiosity,
nevertheless, enterprise of the Firm's insurance coverage subsidiaries is managed pursuant to
the legal guidelines, laws, and accounting practices of the assorted states within the
U.S. and people of a small variety of different jurisdictions outdoors the U.S. in
which they function. As compared with GAAP, the statutory accounting practices
replicate better conservatism and comparability amongst insurers, and are supposed
to handle the first monetary safety pursuits of policyholders and their
beneficiaries. Moreover, these practices additionally have an effect on a major variety of
essential elements comparable to product pricing, danger bearing capability and capital
adequacy, the willpower of Federal revenue taxes payable presently amongst
ORI's tax-consolidated entities, and the upstreaming of dividends by insurance coverage
subsidiaries to the mother or father holding firm. The main variations between these
statutory monetary accounting practices and GAAP are summarized in Observe 1 to
the consolidated monetary statements included in Previous Republic's 2021 Annual
Report on Type 10-Okay.

The insurance coverage enterprise is distinguished from most others in that the costs
(premiums) charged for many merchandise are set with out realizing what the last word
declare prices will probably be. We can also't know precisely when claims will probably be paid, which
could also be a few years after a coverage was issued or expired. This casts Previous Republic
as a risk-taking enterprise managed for the long term. Previous Republic due to this fact
conducts the enterprise with a major give attention to reaching favorable underwriting
outcomes over cycles, and on sustaining a sound monetary situation to assist
our subsidiaries' long-term obligations to policyholders and their
beneficiaries. To realize these goals, adherence to insurance coverage danger
administration rules is burdened, and asset diversification and high quality are
emphasised. As well as, administration engages in an ongoing evaluation of
working dangers, comparable to cybersecurity dangers, that might adversely have an effect on the
Firm's enterprise and fame.

Along with revenue arising from Previous Republic's primary underwriting and associated
providers features, important funding revenue is earned from invested funds
generated by these features and from capital sources. Funding administration
goals for stability of revenue from curiosity and dividends, safety of capital,
and for sufficiency of liquidity to fulfill insurance coverage underwriting and different
obligations as they turn out to be payable sooner or later. Securities buying and selling and the
realization of capital positive factors are usually not major goals. The funding
philosophy is due to this fact finest characterised as emphasizing worth, credit score high quality,
and comparatively long-term holding durations. The Firm's potential to carry each
fastened revenue and fairness securities for lengthy durations of time is enabled by the
scheduling of maturities in contemplation of an acceptable matching of property
and liabilities, and by investments in giant capitalization, extremely liquid
fairness securities.

In gentle of the above elements, the Firm is managed for the long term and with
little regard for quarterly and even annual reporting durations. These time frames
are too quick. Administration believes outcomes are finest evaluated by 
underwriting and general working efficiency tendencies over 10-year intervals.
These possible embrace one or two financial and/or underwriting cycles. This
gives sufficient time for these cycles to run their course, for underwriting and
premium price adjustments to seem in monetary outcomes, and for reserved declare
prices to be quantified with better certainty.

This administration evaluation ought to be learn at the side of the consolidated monetary statements and the footnotes hooked up thereto.

                                       18
--------------------------------------------------------------------------------

ABSTRACT



Previous Republic Worldwide Company reported the next consolidated
outcomes:

OVERALL RESULTS

                                                                                Quarters Ended March 31,
                                                                                                   2022               2021              % Change
Pretax revenue (loss)                                                                           $   382.6          $   630.6
Pretax funding positive factors (losses)                                                                   145.1              375.4
Pretax revenue (loss) excluding funding positive factors (losses)                                       $   237.5          $   255.1                 -6.9  %

Internet revenue (loss)                                                                              $   306.3          $   502.1
Internet of tax funding positive factors (losses)                                                               114.5              295.7
Internet revenue (loss) excluding funding positive factors (losses)                                          $   191.7          $   206.3                 -7.0  %

PER DILUTED SHARE

                                                                                Quarters Ended March 31,
                                                                                                   2022               2021              % Change
Internet revenue (loss)                                                                              $    1.00          $    1.68
Internet of tax funding positive factors (losses)                                                                 .37                .99
Internet revenue (loss) excluding funding positive factors (losses)                                          $     .63          $     .69                 -8.7  %

SHAREHOLDERS' EQUITY

                                                                                                March 31,           Dec. 31,
                                                                                                   2022               2021              % Change
Complete                                                                                          $ 6,750.1          $ 6,893.2                 -2.1  %
Per Frequent Share                                                                               $   22.23          $   22.76                 -2.3  %



Previous Republic Worldwide Company reported pretax revenue, excluding
funding positive factors, of $237.5 for the quarter. The decline in comparison with the 2021
interval, is inside our expectations as growing mortgage rates of interest started
to have an effect on Title Insurance coverage outcomes. Each Common Insurance coverage and Title Insurance coverage
produced strong underwriting outcomes that drove a consolidated mixed ratio of
91.9% for the quarter.

Consolidated web premiums and charges earned was $1.9 billion for the quarter
representing progress of 4.4% in comparison with the 2021 interval. Common Insurance coverage web
earned premiums grew by 6.0%, whereas Title Insurance coverage progress in premium and charges
was tempered by decrease revenues inside their direct operations. Internet funding
revenue elevated barely for the quarter, reflecting progress within the invested
asset base, offset by decrease funding yields earned.

Guide worth per share was $22.23 as of March 31, 2022, reflecting rate of interest
pushed unrealized losses within the fastened revenue portfolio, offset by working
earnings. With the addition of dividends declared in the course of the quarter, this was a
lower of 1.3% over year-end 2021.


                                       19
--------------------------------------------------------------------------------

Previous Republic's enterprise is managed for the long term. On this context
administration's key goals are to attain extremely worthwhile working outcomes
over the long run, and to make sure steadiness sheet energy for the first wants
of the insurance coverage subsidiaries' underwriting and associated providers enterprise. In
this view, the analysis of periodic and long-term outcomes excludes
consideration of all funding positive factors (losses). Below Typically Accepted
Accounting Rules (GAAP), nevertheless, web revenue, inclusive of funding positive factors
(losses), is the measure of whole profitability.

In administration's opinion, the give attention to revenue excluding funding positive factors
(losses), additionally described herein as phase pretax working revenue (loss),
gives a greater solution to analyze, consider, and set up accountability for the
outcomes of the insurance coverage operations. The inclusion of realized funding positive factors
(losses) in web revenue can masks tendencies in working outcomes, as a result of such
realizations are sometimes extremely discretionary. Equally, the inclusion of
unrealized funding positive factors (losses) in fairness securities can additional distort
such working outcomes with important period-to-period fluctuations.

FINANCIAL HIGHLIGHTS
                                                                                Quarters Ended March 31,
SUMMARY INCOME STATEMENTS:                                                                         2022               2021              % Change
Revenues:
Internet premiums and charges earned                                                                   $ 1,919.0          $ 1,838.9                  4.4  %
Internet funding revenue                                                                              106.2              104.3                  1.8
Different revenue                                                                                        36.2               36.3                 -0.1
Complete working revenues                                                                         2,061.5            1,979.6                  4.1
Funding positive factors (losses):
Realized from precise transactions                                                                   65.2                7.8

Unrealized from adjustments in honest worth of fairness securities                                          79.8              367.5
Complete funding positive factors (losses)                                                                    145.1              375.4
Complete revenues                                                                                   2,206.6            2,355.0
Working bills:
Declare prices                                                                                        607.9              603.4                  0.8
Gross sales and basic bills                                                                       1,199.0            1,110.3                  8.0
Curiosity and different expenses                                                                          16.9               10.6                 59.0
Complete working bills                                                                         1,823.9            1,724.4                  5.8  %
Pretax revenue (loss)                                                                               382.6              630.6
Revenue taxes (credit)                                                                              76.3              128.5
Internet revenue (loss)                                                                              $   306.3          $   502.1

COMMON STOCK STATISTICS:
Elements of web revenue (loss) per share:
Fundamental web revenue (loss) excluding funding positive factors (losses)                                    $    0.63          $    0.69                 -8.7  %
Internet funding positive factors (losses):
Realized from precise transactions                                                                   0.17               0.02
Unrealized from adjustments in honest worth of fairness securities                                          0.21               0.97
Fundamental web revenue (loss)                                                                        $    1.01          $    1.68

Diluted web revenue (loss) excluding funding positive factors (losses)

                                                                                       $    0.63          $    0.69                 -8.7  %
Internet funding positive factors (losses):
Realized from precise transactions                                                                   0.17               0.02
Unrealized from adjustments in honest worth of fairness securities                                          0.20               0.97
Diluted web revenue (loss)                                                                      $    1.00          $    1.68
Money dividends on widespread inventory                                                                 $    0.23          $    0.22
Guide worth per share                                                                           $   22.23          $   21.59                  3.0  %


We consider the data offered within the following desk highlights essentially the most
significant indicators of ORI's segmented and consolidated monetary efficiency.
The data underscores the efficiency of our underwriting operations, as
effectively as our sound funding of the capital and underwriting money flows from
these operations.

                                       20
--------------------------------------------------------------------------------

Sources of consolidated revenue (losses)

Quarters ended March, thirty first,

                                                                                        2022               2021              % Change
A. Internet premiums, charges, and different revenue:
Common insurance coverage                                                                   $   910.9          $   859.1                   6.0  %
Title insurance coverage                                                                         998.9              967.7                   3.2
Company & different                                                                         2.4                2.8                 -13.3
Different revenue                                                                             36.2               36.3                  -0.1
Subtotal                                                                              1,948.7            1,866.0                   4.4
RFIG run-off                                                                              6.5                9.2                 -29.0
Consolidated                                                                        $ 1,955.2          $ 1,875.2                   4.3  %

B. Underwriting Revenue (Losses) and Associated Companies:

Common insurance coverage                                                                   $    76.3          $    71.9                   6.2  %
Title insurance coverage                                                                          70.2               93.8                 -25.2
Company & different                                                                        (6.1)              (6.0)                 -0.4
Subtotal                                                                                140.4              159.7                 -12.0
RFIG run-off                                                                              7.7                1.7          N/M
Consolidated                                                                        $   148.2          $   161.4                  -8.2  %

C. Consolidated underwriting ratio:
Declare ratio:
Present 12 months                                                                             34.1  %            34.6  %
Prior years                                                                              (2.4)              (1.8)
Complete                                                                                    31.7               32.8
Expense ratio                                                                            60.2               58.1
Mixed ratio                                                                           91.9  %            90.9  %

D. Internet funding revenue:
Common insurance coverage                                                                   $    82.4          $    84.8                  -2.8  %
Title insurance coverage                                                                          11.3               10.5                   7.6
Company & different                                                                        10.4                5.7                  81.8
Subtotal                                                                                104.2              101.1                   3.1
RFIG run-off                                                                              2.0                3.2                 -36.2
Consolidated                                                                        $   106.2          $   104.3                   1.8  %

E. Curiosity and different expenses (credit):
Common insurance coverage                                                                   $    16.3          $    16.0
Title insurance coverage                                                                           0.5                0.6
Company & different (a)                                                                       -               (5.9)
Subtotal                                                                                 16.9               10.6
RFIG run-off                                                                                -                  -
Consolidated                                                                        $    16.9          $    10.6                  59.0  %

F. Segmented and consolidated pretax revenue (loss)
excluding funding positive factors (losses)(B+D-E):
Common insurance coverage                                                                   $   142.5          $   140.8                   1.2  %
Title insurance coverage                                                                          80.9              103.7                 -21.9
Company & different                                                                         4.2                5.6                 -24.6
Subtotal                                                                                227.7              250.1                  -9.0
RFIG run-off                                                                              9.7                4.9                  97.0
Consolidated                                                                            237.5              255.1                  -6.9  %
Revenue taxes (credit) on above (b)                                                      45.7               48.8
G. Internet revenue (loss) excluding
funding positive factors (losses)                                                               191.7              206.3                  -7.0  %
H. Consolidated pretax funding positive factors (losses):
Realized from precise transactions                                                        65.2                7.8
Unrealized from adjustments in
honest worth of fairness securities                                                          79.8              367.5
Complete                                                                                   145.1              375.4
Revenue taxes (credit) on above                                                          30.5               79.6
Internet of tax funding positive factors (losses)                                                    114.5              295.7
 I. Internet revenue (loss)                                                               $   306.3          $   502.1
J. Consolidated working money circulate                                         

$278.4 $296.0

(a) Consists of consolidation/elimination entries. (b) The efficient tax charges relevant to pre-tax revenue excluding funding capital positive factors (losses) have been 19.3% and 19.1% for the primary quarters of 2022 and 2021, respectively.

                                       21
--------------------------------------------------------------------------------

Common insurance coverage outcomes


                                                                                                 Common Insurance coverage
                                                                                             Abstract Working Outcomes
                                                                   Quarters Ended March 31,
                                                                                   2022                2021              % Change
Internet premiums written                                                          $     960.8           $ 871.2                   10.3  %
Internet premiums earned                                                                 910.9             859.1                    6.0
Internet funding revenue                                                                82.4              84.8                   -2.8
Different revenue                                                                         35.9              36.0                   -0.2
Working revenues                                                                1,029.4             980.0                    5.0
Declare prices                                                                         582.2             567.3                    2.6
Gross sales and basic bills                                                          288.3             255.8                   12.7
Curiosity and different expenses                                                           16.3              16.0                    2.0
Working bills                                                                  886.9             839.2                    5.7
Phase pretax working revenue (loss)                                        $     142.5           $ 140.8                    1.2  %

Declare ratio                                                                          63.9   %          66.0  %
Expense ratio                                                                        27.7              25.6
Mixed ratio                                                                       91.6   %          91.6  %



Common Insurance coverage web premiums earned elevated 6.0% for the quarter, with
rising premiums in industrial auto, monetary indemnity, and property strains of
protection. Sturdy premium price will increase for many strains of protection, aside from
staff' compensation, excessive renewal retention ratios, and new enterprise
manufacturing all contributed. Internet funding revenue decreased barely within the
quarter, reflecting decrease funding yields earned, partially offset by progress
within the invested asset base.

The reported loss ratio for Common insurance coverage improved in the course of the quarter, together with favorable prior interval reserve developments and a decrease present interval claims provision attributable to a number of years of premium price will increase, underwriting actions and a change within the composition of the vary of covers.

The primary quarter expense ratio was elevated in comparison with the identical quarter final
12 months, usually reflecting the shift in line of protection combine, and a rise in
worker prices, together with the timing of sure profit accruals. Investments in
new merchandise and geographies in recent times have diversified the Common
Insurance coverage enterprise, leading to shifts within the strains of protection combine towards
strains with larger expense ratios and decrease present interval declare ratios.

Collectively, these elements produced larger pretax working revenue for the reporting interval.

The next desk presents the loss ratios for latest annual and interim durations and the consequences of loss growth tendencies:

                                                                                Impact of Prior Intervals'
                                                                                      (Favorable)/                            Declare Ratio Excluding
                                           Reported                                Unfavorable Declare                          Prior Intervals' Declare
                                          Declare Ratio                             Reserves Growth                        Reserves Growth
2017                                              71.8  %                                       0.7  %                                     71.1  %
2018                                              72.2                                            -                                        72.2
2019                                              71.8                                          0.4                                        71.4
2020                                              69.9                                         (0.8)                                       70.7
2021                                              64.8  %                                      (3.8) %                                     68.6  %

1st Quarter 2021                                  66.0  %                                      (2.7) %                                     68.7  %
1st Quarter 2022                                  63.9  %                                      (3.2) %                                     67.1  %



Quarterly and annual declare ratios and tendencies might not be indicative of future
outcomes for a enterprise with comparatively lengthy declare cost patterns. We goal
mixed ratios between 90% and 95%, and primarily based on our historic line of
protection combine, a declare ratio common within the excessive 60% to low 70% vary, and an
expense ratio common of 25%. These parts of the mixed ratio will
proceed to replicate the road of protection combine.

                                       22
--------------------------------------------------------------------------------

Outcomes of the title insurance coverage phase

                                                                                                  Title Insurance coverage
                                                                                             Abstract Working Outcomes
                                                                   Quarters

Completed March, thirty first,

                                                                                   2022                2021              % Change
Internet premiums and charges earned                                                  $     998.9           $ 967.7                    3.2  %
Internet funding revenue                                                                11.3              10.5                    7.6
Different revenue                                                                          0.2               0.2                   -5.9
Working revenues                                                                1,010.5             978.4                    3.3
Declare prices                                                                          29.3              29.2                    0.3
Gross sales and basic bills                                                          899.6             844.8                    6.5
Curiosity and different expenses                                                            0.5               0.6                  -16.0
Working bills                                                                  929.5             874.7                    6.3
Phase pretax working revenue (loss)                                        $      80.9           $ 103.7                  -21.9  %

Declare ratio                                                                           2.9   %           3.0  %
Expense ratio                                                                        90.0              87.3
Mixed ratio                                                                       92.9   %          90.3  %




Title Insurance coverage web premiums and charges earned grew by 3.2% within the quarter. Company
revenues continued to extend over the prior interval though at a decrease price
than in latest quarters. Income from direct manufacturing channels declined within the
quarter, and we count on each straight produced and company produced revenues to be
decrease all year long when in comparison with prior 12 months durations. Will increase in
mortgage rates of interest considerably decreased refinance exercise within the quarter
and sure will for the rest of the 12 months. Buy order ranges have been in
line with the prior interval and proceed to learn from robust housing costs.
Ongoing will increase in mortgage rates of interest could have an effect on buy exercise
by way of the rest of the 12 months. Internet funding revenue elevated barely in
the quarter, reflecting progress within the invested asset base, offset by decrease
funding yields earned.

Title Insurance coverage's declare ratios have been comparatively flat for the quarter. The primary
quarter expense ratio was elevated in comparison with the identical quarter final 12 months,
usually reflecting the mixture of decrease straight produced revenues that
carry larger fastened bills, together with a better proportion of company produced
revenues which have the next general expense ratio.

Collectively, these elements produced decrease pretax working revenue for the present interval.

The next desk presents the loss ratios for latest annual and interim durations and the consequences of loss growth tendencies:

                                                                               Impact of Prior Intervals'
                                                                                     (Favorable)/                           Declare Ratio Excluding
                                           Reported                               Unfavorable Declare                          Prior Intervals' Declare
                                         Declare Ratio                             Reserves Growth                        Reserves Growth
2017                                              0.8  %                                      (3.0) %                                     3.8  %
2018                                              1.9                                         (1.8)                                       3.7
2019                                              2.5                                         (1.2)                                       3.7
2020                                              2.3                                         (1.3)                                       3.6
2021                                              2.6  %                                      (1.0) %                                     3.6  %

1st Quarter 2021                                  3.0  %                                      (0.6) %                                     3.6  %
1st Quarter 2022                                  2.9  %                                      (0.6) %                                     3.5  %



                                       23
--------------------------------------------------------------------------------

RFIG Runoff Phase Outcomes

                                                                                                   RFIG Run-off
                                                                                            Abstract Working Outcomes
                                                                   Quarters

Completed March, thirty first,

                                                                                    2022              2021             % Change
Mortgage Insurance coverage (MI)
Internet premiums earned                                                            $      6.5           $  9.2                 -29.0  %
Internet funding revenue                                                                 2.0              3.2                 -36.2
Declare prices                                                                          (4.2)             4.3                N/M
MI pretax working revenue (loss)                                              $      9.7           $  4.9                  97.0  %

Declare ratio                                                                         -64.8   %         46.5  %
Expense ratio                                                                        46.8             34.5
Mixed ratio                                                                      -18.0   %         81.0  %



Pretax working outcomes of RFIG Run-off replicate the persevering with drop in web
earned premiums according to the declining danger in pressure, and considerably
decrease declare prices in comparison with the 2021 interval. Internet funding revenue decreased
within the quarter, reflecting a declining invested asset base, and decrease funding
yields earned. Extraordinary dividends of $35.0 million have been paid to the mother or father
firm in the course of the quarter. Declare prices replicate considerably fewer newly
reported delinquencies together with enhancing tendencies in treatment charges, influenced by
a comparatively robust economic system and actual property market.

Collectively, these elements produced a considerably larger pretax working revenue for the reporting interval.

The next desk presents the loss ratios for latest annual and interim durations and the consequences of loss growth tendencies:

                                                                                Impact of Prior Intervals'
                                                                                      (Favorable)/                             Declare Ratio Excluding
                                           Reported                                 Unfavorable Declare                          Prior Intervals' Declare
                                          Declare Ratio                             Reserves Growth                         Reserves Growth
2017                                              57.6  %                                      (38.3) %                                     95.9  %
2018                                              43.2                                         (27.0)                                       70.2
2019                                              55.0                                         (12.5)                                       67.5
2020                                              81.7                                         (26.5)                                      108.2
2021                                              (5.3) %                                      (67.5) %                                     62.2  %

1st Quarter 2021                                  46.5  %                                      (13.5) %                                     60.0  %
1st Quarter 2022                                 (64.8) %                                     (131.1) %                                     66.3  %



                                       24
--------------------------------------------------------------------------------

Company and different working outcomes

                                                                                                       Company & Different
                                                                                                   Abstract Working Outcomes
                                                                       

Quarters ended March, thirty first,

                                                                                          2022               2021             % Change
Internet life and accident premiums earned                                                $        2.4          $  2.8                 -13.3  %
Internet funding revenue                                                                        10.4             5.7                  81.8
Different working revenue                                                                          -               -                     -
Working revenues                                                                           12.9             8.5                  50.8
Declare prices                                                                                   0.6             2.4                 -75.0
Insurance coverage bills                                                                            0.9             0.8                   8.7
Company, curiosity and different bills - web                                                  7.1            (0.3)         N/M
Working bills                                                                            8.6             2.9                 196.8
Company & different pretax working revenue (loss)                                     $        4.2          $  5.6                 -24.6  %



This phase features a small life and accident insurance coverage enterprise and the online
prices related to the mother or father holding firm and a number of other inner company
providers subsidiaries. The phase tends to provide extremely variable outcomes
stemming from volatility inherent from the shortage of scale. Curiosity expense
elevated associated to the issuance of $650 million of debt late within the second
quarter of 2021, partially offset by web funding revenue from the next degree
of investments.

© Edgar On-line, supply Previews

About Michael Foreman

Check Also

Church Mutual Receives APCIA Social Fairness and Neighborhood Empowerment Award

MERRILL, Wis. –(BUSINESS WIRE)–Church Mutual Insurance coverage Firm, SI (a inventory insurer)1, has been just …