[ X
]
|
Annual
Report Pursuant to Section 15(d) of the Securities Exchange Act of
1934
|
[ ]
|
Transition Report Pursuant to Section 15(d) of the Securities Exchange Act
of 1934
|
|
SIGNATURES
|
Pages
|
|
Report of
Independent Registered Public Accounting Firm
|
1
|
Financial
Statements:
|
|
Statements of
Net Assets Available for Benefits as of
|
|
December 31, 2008 and 2007
|
2
|
Statements of
Changes in Net Assets Available for Benefits for the
|
|
years ended December 31, 2008 and 2007
|
3
|
Notes to
Financial Statements
|
4-12
|
Supplemental
Schedules:
|
|
Schedule of
Assets (Held at End of Year) at December 31, 2008
|
13
|
Schedule of
Reportable Transactions for the Year Ended December 31,
2008
|
14
|
OLD
REPUBLIC INTERNATIONAL CORPORATION
|
|||||||||||||||||||||||
EMPLOYEES
SAVINGS AND STOCK OWNERSHIP PLAN
|
|||||||||||||||||||||||
STATEMENTS
OF NET ASSETS AVAILABLE FOR BENEFITS
|
|||||||||||||||||||||||
As
of December 31, 2008 and 2007
|
|||||||||||||||||||||||
2008
|
2007
|
||||||||||||||||||||||
Non-
|
Non-
|
||||||||||||||||||||||
Participant
|
Participant
|
Participant
|
Participant
|
||||||||||||||||||||
Directed
|
Directed
|
Unallocated
|
Combined
|
Directed
|
Directed
|
Unallocated
|
Combined
|
||||||||||||||||
Account
|
Account
|
Account
|
Account
|
Account
|
Account
|
Account
|
Account
|
||||||||||||||||
ASSETS
|
|||||||||||||||||||||||
Investments,
at fair value:
|
|||||||||||||||||||||||
Old
Republic International Corporation:
|
|||||||||||||||||||||||
Common
shares
|
$
|
2,598,627
|
$
|
114,636,560
|
$
|
65,422,622
|
$
|
182,657,809
|
$
|
584,696
|
$
|
150,501,399
|
$
|
-
|
$
|
151,086,095
|
|||||||
Common
shares committed for
|
|||||||||||||||||||||||
release
to participants
|
|||||||||||||||||||||||
(294,679
shares at $11.92 per share)
|
|||||||||||||||||||||||
-
|
3,512,574
|
(3,512,574)
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||
Mutual
funds
|
128,080,824
|
40,412
|
-
|
128,121,236
|
182,365,964
|
172,328
|
182,538,292
|
||||||||||||||||
130,679,451
|
118,189,546
|
61,910,048
|
310,779,045
|
182,950,660
|
150,673,727
|
-
|
333,624,387
|
||||||||||||||||
Investments,
at cost:
|
|||||||||||||||||||||||
Collective
Trusts:
|
|||||||||||||||||||||||
Short-term
Investment Fund,
|
|||||||||||||||||||||||
Cash
& CD's
|
-
|
-
|
797,760
|
797,760
|
-
|
-
|
-
|
-
|
|||||||||||||||
Total
investments
|
130,679,451
|
118,189,546
|
62,707,808
|
311,576,805
|
182,950,660
|
150,673,727
|
-
|
333,624,387
|
|||||||||||||||
Contributions
receivable from employers
|
-
|
-
|
2,631,059
|
2,631,059
|
-
|
2,515,676
|
-
|
2,515,676
|
|||||||||||||||
Contributions
receivable from employees
|
490,183
|
-
|
-
|
490,183
|
693,996
|
-
|
-
|
693,996
|
|||||||||||||||
Funds
in course of settlement
|
14,688
|
-
|
-
|
14,688
|
133,885
|
-
|
-
|
133,885
|
|||||||||||||||
Total
assets
|
$
|
131,184,322
|
$
|
118,189,546
|
$
|
65,338,867
|
$
|
314,712,735
|
$
|
183,778,541
|
$
|
153,189,403
|
$
|
-
|
$
|
336,967,944
|
|||||||
LIABILITIES
|
|||||||||||||||||||||||
Notes
payable
|
$
|
-
|
$
|
-
|
$
|
50,000,000
|
$
|
50,000,000
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
|||||||
Unpaid
anti-discrimination refunds
|
3,758
|
-
|
-
|
3,758
|
49,865
|
-
|
-
|
49,865
|
|||||||||||||||
Unpaid
interest
|
-
|
-
|
75,156
|
75,156
|
-
|
-
|
-
|
-
|
|||||||||||||||
Unpaid
administrative expenses
|
-
|
40,000
|
-
|
40,000
|
-
|
50,263
|
-
|
50,263
|
|||||||||||||||
Total
liabilities
|
3,758
|
40,000
|
50,075,156
|
50,118,914
|
49,865
|
50,263
|
-
|
100,128
|
|||||||||||||||
NET
ASSETS AVAILABLE FOR BENEFITS
|
131,180,564
|
118,149,546
|
15,263,711
|
264,593,821
|
183,728,676
|
153,139,140
|
-
|
336,867,816
|
|||||||||||||||
Total
liabilities and net assets
|
|||||||||||||||||||||||
available
for benefits
|
$
|
131,184,322
|
$
|
118,189,546
|
$
|
65,338,867
|
$
|
314,712,735
|
$
|
183,778,541
|
$
|
153,189,403
|
$
|
-
|
$
|
336,967,944
|
OLD
REPUBLIC INTERNATIONAL CORPORATION
|
|||||||||||||||||||||||
EMPLOYEES
SAVINGS AND STOCK OWNERSHIP PLAN
|
|||||||||||||||||||||||
STATEMENTS
OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
|
|||||||||||||||||||||||
As
of December 31, 2008 and 2007
|
|||||||||||||||||||||||
2008
|
2007
|
||||||||||||||||||||||
Non-
|
Non-
|
||||||||||||||||||||||
Participant
|
Participant
|
Participant
|
Participant
|
||||||||||||||||||||
Directed
|
Directed
|
Unallocated
|
Combined
|
Directed
|
Directed
|
Unallocated
|
Combined
|
||||||||||||||||
Account
|
Account
|
Account
|
Account
|
Account
|
Account
|
Account
|
Account
|
||||||||||||||||
Additions:
|
|||||||||||||||||||||||
Employer
contributions
|
$
|
-
|
$
|
1,473
|
$
|
2,631,059
|
$
|
2,632,532
|
$
|
-
|
$
|
2,526,911
|
$
|
-
|
$
|
2,526,911
|
|||||||
Common
shares committed for
|
|||||||||||||||||||||||
release
to participants
|
|||||||||||||||||||||||
(294,679
shares at $11.92 per share)
|
-
|
3,512,574
|
-
|
3,512,574
|
-
|
- | - |
-
|
|||||||||||||||
Employee
contributions
|
19,002,768
|
-
|
-
|
19,002,768
|
21,038,941
|
-
|
-
|
21,038,941
|
|||||||||||||||
Interfund
transfers
|
3,194,197
|
(3,194,197)
|
-
|
-
|
18,979,985
|
(18,979,985)
|
-
|
-
|
|||||||||||||||
Interest
income
|
26,523
|
1,650
|
-
|
28,173
|
9
|
9,605
|
-
|
9,614
|
|||||||||||||||
Dividend
income
|
5,435,378
|
6,416,927
|
933,041
|
12,785,346
|
10,933,583
|
6,441,632
|
-
|
17,375,215
|
|||||||||||||||
Net
appreciation (depreciation) in fair value of
investments
|
(66,267,675)
|
(33,730,807) |
15,422,622
|
(84,575,860) |
(375,868)
|
(80,845,551)
|
- | (81,221,419) | |||||||||||||||
(38,608,809)
|
(26,992,380)
|
18,986,722
|
(46,614,467)
|
50,576,650
|
(90,847,388)
|
-
|
(40,270,738)
|
||||||||||||||||
Deductions:
|
|||||||||||||||||||||||
Termination
and withdrawal benefits
|
19,271,800
|
7,947,992
|
-
|
27,219,792
|
23,718,896
|
18,207,211
|
-
|
41,926,107
|
|||||||||||||||
Common
shares committed for
|
|||||||||||||||||||||||
release
to participants
|
|||||||||||||||||||||||
(294,679
shares at $11.92 per share)
|
-
|
-
|
3,512,574
|
3,512,574
|
-
|
-
|
-
|
-
|
|||||||||||||||
Interest
expense
|
-
|
-
|
210,437
|
210,437
|
-
|
-
|
-
|
-
|
|||||||||||||||
Anti-discrimination
refunds
|
3,758
|
-
|
-
|
3,758
|
49,865
|
-
|
-
|
49,865
|
|||||||||||||||
Administrative
expenses
|
164,530
|
49,222
|
-
|
213,752
|
81,202
|
122,590
|
-
|
203,792
|
|||||||||||||||
19,440,088
|
7,997,214
|
3,723,011
|
31,160,313
|
23,849,963
|
18,329,801
|
-
|
42,179,764
|
||||||||||||||||
NET
ADDITIONS (DEDUCTIONS)
|
(58,048,897)
|
(34,989,594)
|
15,263,711
|
(77,774,780)
|
26,726,687
|
(109,177,189)
|
-
|
(82,450,502)
|
|||||||||||||||
Transfer
from merged-in plan
|
5,500,785
|
-
|
-
|
5,500,785
|
-
|
-
|
-
|
-
|
|||||||||||||||
Net
assets available for plan benefits,
|
|||||||||||||||||||||||
beginning
of year
|
183,728,676
|
153,139,140
|
-
|
336,867,816
|
157,001,989
|
262,316,329
|
-
|
419,318,318
|
|||||||||||||||
NET
ASSETS AVAILABLE FOR PLAN
|
|||||||||||||||||||||||
BENEFITS,
END OF YEAR
|
$
|
131,180,564
|
$
|
118,149,546
|
$
|
15,263,711
|
$
|
264,593,821
|
$
|
183,728,676
|
$
|
153,139,140
|
$
|
-
|
$
|
336,867,816
|
|
C.
|
Contributions
|
1.00%
30% 40% 65% 100% 140%
|
1.01 to
2.00%
28%
38% 63% 98% 138%
|
2.01 to
3.00%
26%
36% 61% 96% 136%
|
3.01 to
4.00%
24%
34% 59% 94% 134%
|
4.01 to
5.00%
22%
32% 57% 92% 132%
|
5.01 to
6.00%
20%
30% 55% 90% 130%
|
6.01 to
15.00%
None
None None None None
|
·
|
The
percentage increase in the Corporation's average operating earnings per
share is obtained by comparing the average diluted operating earnings per
share for the Corporation for the five years ending with the calculation
year, to the same average for the five years ending the year prior to the
calculation year. Operating earnings per share are equal to net
income per share exclusive of realized capital gains or losses and
extraordinary items and income taxes applicable
thereto.
|
·
|
the Companies
meet certain minimum profit
objectives;
|
·
|
the
participant completes 1,000 or more hours of service during the year;
and
|
·
|
the
participant is employed by one of the Companies on December 31 of that
year, died or became fully disabled during the year, or retired during the
year after attaining age 65.
|
C.
|
Contributions,
Continued
|
·
|
Prior to
December 31, 2008, no contribution could be made if the Companies’
consolidated annual net profit before extraordinary items and taxes was
less than $2,500,000. Effective as of December 31, 2008, the Plan was
amended to allow the Companies to make discretionary contributions to the
Plan under any circumstance. For plan year 2008, the Corporation’s Board
of Directors approved an additional discretionary contribution of $280,708
to partially fund the Plan’s debt service. For financial statement
purposes, the discretionay contribution is included with the employer
matching contribution.
|
·
|
No
contribution shall be made by any Employer for any fiscal year which
exceeds the maximum amount currently deductible by that Employer under
section 404 of the Internal Revenue
Code.
|
·
|
No
contribution shall be made by any Employer for any fiscal year which would
cause its total contribution to exceed the amount of its annual net profit
before taxes and its accumulated
earnings.
|
D.
|
Employee
Account
|
E.
|
Company
Account
|
·
|
the plan
participant has reached age 65, or
|
·
|
termination
is caused by death, or
|
·
|
termination
is caused by total and permanent disability which renders the employee
incapable of performing satisfactory service for the
Companies.
|
·
|
in one lump
sum, or
|
·
|
in a direct
rollover to an eligible retirement plan specified by the participant,
or
|
·
|
in
substantially equal annual or more frequent installments paid over a
reasonable period of time not to exceed the life expectancy of the
participant or the joint life expectancy of the participant and his/her
spouse or designated beneficiary.
|
1.
|
Description of Plan,
Continued
|
F.
|
Unallocated
Account
|
G.
|
Common Shares
Committed to be Allocated to
Participants
|
H.
|
Voting
Rights
|
I.
|
Recently Issued
Accounting Pronouncements
|
2008
|
2007
|
||
Old Republic
International Corporation Common Stock:
|
|||
Allocated and
participant directed accounts (218,006 and 37,943 shares,
respectively)
|
$ 2,598,627
|
$ 584,696
|
|
Allocated and
non-participant directed accounts (9,617,161 and 9,766,476 shares,
respectively)
|
114,636,560
|
150,501,399
|
|
Committed to
be allocated to participant accounts (294,679 shares)
|
3,512,574
|
N/A
|
|
Not allocated
to participant accounts (5,193,796 shares)
|
61,910,048
|
N/A
|
|
Total held by
the Plan (15,323,642 and 9,804,419 shares, respectively)
|
182,657,809
|
151,086,095
|
Fidelity
Value Fund
|
- |
18,570,346
|
|
Fidelity
Cash Reserves Fund
|
21,357,001
|
19,119,442
|
|
Fidelity
Diversified International Fund
|
- |
21,880,286
|
|
Net
appreciation in the fair value of investments is broken down as follows
for the years ended Decenber 31:
|
|
|
2008
|
2007
|
||
Old Republic
International Corporation Common Stock
|
$
(18,548,872)
|
$
(80,865,679)
|
|
Mutual
funds
|
(66,026,988)
|
(355,740)
|
|
$
(84,575,860)
|
$
(81,221,419)
|
Participating
|
|||||||||||
Subsidiary
|
|||||||||||
Total
|
Corporation
|
Companies
|
|||||||||
2009
|
$
|
3,350,000
|
$
|
2,010,000
|
$
|
1,340,000
|
|||||
2010
|
20,820,000
|
2,160,000
|
18,660,000
|
||||||||
2011
|
2,370,000
|
2,370,000
|
|||||||||
2012
|
2,580,000
|
2,580,000
|
|||||||||
2013
|
2,790,000
|
2,790,000
|
|||||||||
Thereafter
|
18,090,000
|
18,090,000
|
|||||||||
Total
|
$
|
50,000,000
|
$
|
30,000,000
|
$
|
20,000,000
|
|
Old Republic
International Corporation and participating subsidiaries are parties in
interest. The Plan’s Non-Participant Directed Account (Company
Account) and Unallocated Account are made up of the Corporation’s common
stock as noted in Note 3. Also, office personnel, space and
equipment are furnished by the Companies at no charge to the
Plan.
|
|
Through
November 21, 2008, Inter Capital Corporation of Chicago, an affiliate, was
the Plan’s Trustee to whom trustee fees ($36,000 per annum) were paid by
the Plan. On November 21, 2008, four members of the Corporation’s
management were appointed as the Trustees of the
Plan.
|
|
Fidelity
Investments Institutional Services Company, Inc. (Fidelity Investments), a
subsidiary of FMR Corporation, is the Plan’s custodian, record keeper and
provider of educational information to plan participants. All
mutual funds are managed by subsidiaries of FMR Corporation, which make
FMR Corporation a party in interest. Fees paid by the Plan to
Fidelity Investments for custodianship, transaction and maintenance were
$110,206 and $120,212 during 2008 and 2007,
respectively.
|
OLD REPUBLIC
INTERNATIONAL CORPORATION
|
||||||||||||||||
EMPLOYEES
SAVINGS AND STOCK OWNERSHIP PLAN
|
||||||||||||||||
FORM
5500-ANNUAL RETURN/REPORT OF EMPLOYEE BENEFIT PLAN
|
||||||||||||||||
SCHEDULE H,
LINE 4i-SCHEDULE OF ASSETS (HELD AT END OF YEAR)
|
||||||||||||||||
DECEMBER 31,
2008
|
||||||||||||||||
EIN:
36-2678171 PLAN NUMBER-003
|
||||||||||||||||
(c)
|
||||||||||||||||
DESCRIPTION
OF INVESTMENT INCLUDING MATURITY DATE,
|
||||||||||||||||
RATE OF
INTEREST, COLLATERAL, SHARES, PAR OR MATURITY VALUE
|
||||||||||||||||
SHARES,
|
||||||||||||||||
(b)
|
RATE
OF
|
PAR,
OR
|
(e)
|
|||||||||||||
(a) |
IDENTITY OF
ISSUE, BORROWER,
|
MATURITY
|
INTEREST
|
MATURITY
|
(d)
|
CURRENT
|
||||||||||
*
|
LESSOR, OR
SIMILAR PARTY
|
DATE
|
DIVIDENDS
|
COLLATERAL
|
VALUE
|
COST
|
VALUE
|
|||||||||
MUTUAL
FUNDS:
|
||||||||||||||||
FIDELITY
FUND
|
N/A
|
VARIABLE
|
N/A
|
334,203
|
sh
|
#
|
$
|
7,606,458
|
||||||||
FIDELITY
EQUITY-INCOME FUND
|
N/A
|
VARIABLE
|
N/A
|
284,257
|
sh
|
#
|
8,775,007
|
|||||||||
FIDELITY
INVESTMENT GRADE BOND FUND
|
N/A
|
VARIABLE
|
N/A
|
563,320
|
sh
|
#
|
3,577,082
|
|||||||||
FIDELITY
INTERMEDIATE TERM BOND FUND
|
N/A
|
VARIABLE
|
N/A
|
428,114
|
sh
|
#
|
3,891,560
|
|||||||||
FIDELITY
CAPITAL & INCOME FUND
|
N/A
|
VARIABLE
|
N/A
|
495,867
|
sh
|
#
|
2,707,433
|
|||||||||
FIDELITY
VALUE FUND
|
N/A
|
VARIABLE
|
N/A
|
227,370
|
sh
|
#
|
9,062,986
|
|||||||||
FIDELITY CASH
RESERVES
|
N/A
|
VARIABLE
|
N/A
|
21,357,002
|
sh
|
A
|
21,357,002
|
|||||||||
SPARTAN
MARKET INDEX FUND
|
N/A
|
VARIABLE
|
N/A
|
157,263
|
sh
|
#
|
9,767,575
|
|||||||||
FIDELITY
AGGRESSIVE GROWTH FUND
|
N/A
|
VARIABLE
|
N/A
|
280,387
|
sh
|
#
|
3,266,505
|
|||||||||
FIDELITY
DIVERSIFIED INTERNATIONAL FUND
|
N/A
|
VARIABLE
|
N/A
|
532,224
|
sh
|
#
|
11,448,136
|
|||||||||
FIDELITY
DIVIDEND GROWTH FUND
|
N/A
|
VARIABLE
|
N/A
|
577,905
|
sh
|
#
|
9,125,116
|
|||||||||
FIDELITY
SMALL CAP INDEPENDENCE FUND
|
N/A
|
VARIABLE
|
N/A
|
124,584
|
sh
|
#
|
1,311,870
|
|||||||||
FIDELITY
MID-CAP STOCK FUND
|
N/A
|
VARIABLE
|
N/A
|
387,672
|
sh
|
#
|
6,051,564
|
|||||||||
FIDELITY
FREEDOM INCOME FUND
|
N/A
|
VARIABLE
|
N/A
|
35,226
|
sh
|
#
|
336,762
|
|||||||||
FIDELITY
FREEDOM 2000 FUND
|
N/A
|
VARIABLE
|
N/A
|
56,013
|
sh
|
#
|
562,934
|
|||||||||
FIDELITY
FREEDOM 2010 FUND
|
N/A
|
VARIABLE
|
N/A
|
498,334
|
sh
|
#
|
5,162,745
|
|||||||||
FIDELITY
FREEDOM 2020 FUND
|
N/A
|
VARIABLE
|
N/A
|
679,512
|
sh
|
#
|
6,829,096
|
|||||||||
FIDELITY
FREEDOM 2030 FUND
|
N/A
|
VARIABLE
|
N/A
|
250,162
|
sh
|
#
|
2,441,578
|
|||||||||
SPARTAN
EXTENDED MARKET INDEX FUND
|
N/A
|
VARIABLE
|
N/A
|
20,521
|
sh
|
#
|
462,749
|
|||||||||
SPARTAN
INTERNATIONAL INDEX FUND
|
N/A
|
VARIABLE
|
N/A
|
27,283
|
sh
|
#
|
729,543
|
|||||||||
FIDELITY
SHORT-TERM BOND FUND
|
N/A
|
VARIABLE
|
N/A
|
1,577,156
|
sh
|
#
|
12,554,161
|
|||||||||
FIDELITY
FREEDOM 2040 FUND
|
N/A
|
VARIABLE
|
N/A
|
195,595
|
sh
|
#
|
1,093,374
|
|||||||||
128,121,236
|
||||||||||||||||
EMPLOYER SECURITIES:
|
||||||||||||||||
OLD REPUBLIC
INTERNATIONAL CORPORATION COMMON STOCK:
|
||||||||||||||||
PARTICIPANT
DIRECTED
|
N/A
|
N/A
|
N/A
|
218,006
|
sh
|
$
|
2,847,511
|
2,598,627
|
||||||||
NON-PARTICIPANT
DIRECTED
|
N/A
|
N/A
|
N/A
|
9,911,840
|
sh
|
84,193,820
|
118,149,134
|
|||||||||
UNALLOCATED
|
N/A
|
N/A
|
N/A
|
5,193,796
|
sh
|
47,315,474
|
61,910,048
|
|||||||||
TOTAL
|
15,323,642
|
sh
|
$
|
134,356,805
|
182,657,809
|
|||||||||||
COLLECTIVE
TRUSTS:
|
||||||||||||||||
THE NORTHERN TRUST COMPANY-
|
||||||||||||||||
SHORT-TERM
INVESTMENT FUND, CASH & CD,s
|
N/A
|
N/A
|
N/A
|
797,760
|
sh
|
797,760
|
797,760
|
|||||||||
TOTAL
INVESTMENTS HELD
|
$
|
311,576,805
|
OLD
REPUBLIC INTERNATIONAL CORPORATION
|
|||||||||||||||
EMPLOYEES
SAVINGS AND STOCK OWNERSHIP PLAN
|
|||||||||||||||
FORM
5500-ANNUAL RETURN/REPORT OF EMPLOYEE BENEFIT PLAN
|
|||||||||||||||
SCHEDULE
H, LINE 4j-SCHEDULE OF REPORTABLE TRANSACTIONS
|
|||||||||||||||
FOR
THE YEAR ENDED DECEMBER 31, 2008
|
|||||||||||||||
EIN:
36-2678171 PLAN NUMBER-003
|
|||||||||||||||
(h)
|
|||||||||||||||
(f)
|
Current
Value
|
||||||||||||||
(c)
|
(d)
|
(e)
|
Expense
|
(g)
|
of
Asset on
|
(i)
|
|||||||||
(a)
|
(b)
|
Purchase
|
Selling
|
Lease
|
Incurred
with
|
Cost
of
|
Transaction
|
Net
Gain
|
|||||||
Identity
of Party or InvestmentInvolved
|
Price
|
Price
|
Rental
|
Transaction
|
Asset
|
Date
|
or
Loss
|
||||||||
Description
of Asset
|
|||||||||||||||
Purchases
of Investments
|
|||||||||||||||
Old
Republic International
|
|||||||||||||||
Corporation
Common Stock
|
|||||||||||||||
(6,297,879
shares)
|
$
|
60,039,441
|
N/A
|
N/A
|
N/A
|
$
|
60,039,441
|
$
|
60,039,441
|
-
|
|||||
Sales
of Investments
|
|||||||||||||||
Old
Republic International
|
|||||||||||||||
Corporation
Common Stock
|
|||||||||||||||
(958,719
shares)
|
N/A
|
$
|
12,175,578
|
N/A
|
N/A
|
$
|
8,489,892
|
$
|
12,175,578
|
$
|
3,685,686
|