Old Republic Surety Announces New President and CEO

Old Republic Surety has appointed Steve Denault as President and Alan Pavlic as CEO, both effective immediately. Denault brings 33 years of experience, including roles at COUNTRY Financial, while Pavlic has been with Old Republic since 2005 and was previously President since 2013. The new appointments aim to drive growth and transformation for the company.

Chicago-based Old Republic International has announced significant leadership changes at its Old Republic Surety Company division, appointing Steve Denault as President and Alan Pavlic as CEO, effective immediately. This move aims to drive growth and transformation for the company.

Steve Denault, 59, brings over three decades of experience to the role, having previously served as COO and CEO Advisor at COUNTRY Financial. He holds a master’s degree in Agricultural Economics from the University of Illinois and a graduate degree from Illinois State University. Denault joins Old Republic after serving in various executive positions, most recently as the COO in 2019 and CEO Advisor in 2024.

Alan Pavlic, 65, has been with Old Republic since 2005, serving as President since 2013. He previously held roles as Senior Vice President and Claims General Counsel. Pavlic earned his bachelor’s degree from Albion College and his juris doctor from Michigan State University College of Law. This transition sees Pavlic taking on the CEO role, while Denault assumes the President position.

Craig Smiddy, CEO of Old Republic International, commented on the leadership transition, noting Pavlic’s achievements in expanding the company’s presence in the surety marketplace. The new appointments come as Old Republic Surety seeks to capitalize on surging demand for surety bonds in infrastructure projects and commercial markets.

Old Republic Surety specializes in underwriting surety bonds used primarily in construction, legal compliance, and commercial transactions. The appointment of Denault and Pavlic aims to leverage their extensive experience to drive growth and transformation for the company. The leadership transition follows Old Republic International’s 13% year-over-year premium growth in Specialty Insurance, driven by strong retention rates and new business in commercial auto, property, and liability lines.

The new leadership team’s focus on underwriting discipline will be critical as they navigate softening markets in certain segments. Despite a 22% drop in net income in Q1 2025 due to one-time investment losses, the company’s net operating income rose 9%, reflecting improved underwriting performance. The company’s book value per share grew 7.2% year-over-year to $24.19, supported by $93 million in capital returns during the quarter.

The surety market is poised for growth, driven by $4.5 trillion in U.S. infrastructure spending over the next decade and rising demand for commercial construction bonds. Old Republic Surety, as one of the largest providers of surety products, is well-positioned to benefit. The company’s conservative strategy avoids high-risk exposures, and its parent company’s 84% fixed-income investment portfolio provides liquidity to support underwriting commitments.

The new leadership’s focus on niche markets, such as surety bonds for renewable energy projects and mid-sized contractors, could further differentiate Old Republic. Management has signaled intentions to expand through targeted acquisitions and IT investments to enhance underwriting analytics, which could solidify its market share.

While Old Republic’s fundamentals are strong, risks persist, including the cyclical nature of the surety market and exposure to casualty lines. However, the new leadership’s emphasis on multi-year underwriting cycles and reserving discipline mitigates these risks.

In conclusion, Old Republic Surety’s leadership shift is a strategic move to reinforce its position in a growing market. Backed by financial discipline and a focus on long-term growth, this insurer is primed to outperform in the coming years.

References
[1] https://www.tradingview.com/news/reuters.com,2025:newsml_L6N3TE08K:0-old-republic-appoints-denault-and-pavlic-to-lead-surety-business/
[2] https://www.investing.com/news/company-news/old-republic-announces-leadership-changes-at-surety-unit-93CH-4138238
[3] https://www.marketscreener.com/quote/stock/OLD-REPUBLIC-INTERNATIONA-13918/news/OLd-Republic-Surety-Company-Appoints-Steve-Denault-as-President-Effective-Immediately-50527843/
[4] https://www.ainvest.com/news/republic-surety-leadership-shift-signals-strategic-momentum-surety-growth-2507/