CHICAGO, Feb. 23, 2017 /PRNewswire/ -- Old Republic
International Corporation (NYSE: ORI) today announced the three
above-noted actions taken at today's regularly scheduled meeting of
the Board of Directors:
A quarterly cash dividend at a new rate of 19 cents per share was declared on the common
stock. The dividend is payable March
15, 2017 to shareholders of record on March 6, 2017. Subject to Board approval of
each quarter's new rate, the full year's cash dividend will amount
to 76 cents per share compared to
75 cents paid in 2016. This latest
increase marks the 36th consecutive year that Old
Republic has boosted its cash dividend, and 2017 becomes the
76th year of uninterrupted cash dividend payments.
At its meeting the Board of Directors also approved an extension
of the Company's shareholder rights plan, originally adopted in
June 1987. The plan, as now amended, reflects certain
technical updates and extends the rights through June 26, 2027. In reporting on the Board's
extension of the plan, A. C. Zucaro,
Chairman and Chief Executive Officer, indicated, "The amended
rights plan, like its predecessors, represents a sound and
reasonable means of protecting the interests of shareholders and
other stakeholders. The rights can be activated in the face
of a possible takeover attempt that does not treat all shareholders
equally, that disregards the Company's true value, or that exhibits
self-dealing, coercive behavior or agenda-driven objectives and
intents inimical to the best interests of shareholders or the
Company's insurance subsidiaries' long-term financial stability and
promises of indemnity to assureds and beneficiaries. The plan has
no immediate dilutive effect and is not being renewed due to any
known threat to Old Republic's long-term mission as an independent,
publicly held institution managed for the long run."
For the past 30 years during which the predecessor rights plans
have been in effect, Old Republic's total market return, with
dividends reinvested, has grown at a compounded annual rate of
approximately 11 percent per share, shareholder equity, inclusive
of cash dividends, has grown at an annual rate of 10.5 percent per
share, cash dividend rate at an 8.5 percent annual compound
rate. For the same 30-year period, the total market return
for the S&P 500 Index, with dividends reinvested, has risen at
an approximate 10.2 percent annual compound rate. According
to the Winter 2016-2017 edition of Mergent's Dividend Achievers,
Old Republic is one of just 95 companies, out of all publicly held
corporations considered, that have posted at least 25 consecutive
years of annual dividend growth.
At the same meeting the Directors increased the Board's size to
twelve by appointing Steven J.
Bateman (58) as a new independent director. A recently
retired audit partner of the highly regarded international
accounting firm of PricewaterhouseCoopers, LLP, Steven Bateman brings to Old Republic a wealth
of knowledge gained over 37 years of audit and business advisory
experience. Most notably his wide-ranging experience in the
service of a large number of organizations engaged in all major
insurance fields will harmonize extremely well with Old Republic's
Board governance objectives.
About Old Republic
Chicago-based Old Republic
International Corporation is one of the nation's 50 largest
publicly held insurance organizations. Its most recent financial
statements reflect consolidated assets of approximately
$18.5 billion and common
shareholders' equity of $4.4 billion,
or $17.20 per share. Its current
stock market valuation is approximately $5.4
billion, or $21.02 per
share.
The Company is organized as an 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 lines has devolved
to a run-off operating mode in recent years.
For the latest news releases and other
corporate documents on Old Republic, please write to:
Investor Relations
Old Republic International Corporation
307 North Michigan Avenue • Chicago, IL 60601
312-346-8100
or visit us at www.oldrepublic.com
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