Old Republic International Corp. (ORI)
NYSE:ORI
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Old Republic International
(NYSE:ORI)
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Rating:70Outperform
Price Target:
$42.00
▲(7.14% Upside)
Action:ReiteratedDate:02/27/26
The score is driven primarily by solid underlying profitability and a conservatively levered balance sheet, tempered by a sharp 2025 cash-flow deterioration. Support comes from reasonable valuation with a very high dividend yield and a constructive technical trend, while earnings-call risks center on worsening combined ratios (commercial auto loss trends) and slower expected investment income growth.
Positive Factors
Conservative balance sheet and healthy ROE
A low, stable debt-to-equity range and sizable equity base support financial resilience through underwriting cycles. Healthy mid-teens ROE indicates the business earns solid returns on capital, enabling sustained capacity to underwrite, invest, and return capital over the medium term.
Negative Factors
Sharp 2025 cash-flow deterioration
A collapse to zero operating cash flow and slightly negative free cash flow materially reduces financial flexibility. For an insurer, sustained cash generation funds claims, reinvestment and buybacks; if this reflects reserve or working-capital timing it may reverse, but persistence would constrain capital returns and reinvestment.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet and healthy ROE
A low, stable debt-to-equity range and sizable equity base support financial resilience through underwriting cycles. Healthy mid-teens ROE indicates the business earns solid returns on capital, enabling sustained capacity to underwrite, invest, and return capital over the medium term.
Read all positive factors
Old Republic International (ORI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.63B
Dividend Yield6.98%
Average Volume (3M)2.08M
Price to Earnings (P/E)11.9
Beta (1Y)0.41
Revenue Growth7.08%
EPS Growth-4.36%
CountryUS
Employees9,400
SectorFinancial
Sector Strength70
IndustryInsurance - Diversified
Share Statistics
EPS (TTM)0.74
Shares Outstanding245,730,320
10 Day Avg. Volume2,577,040
30 Day Avg. Volume2,082,080
Financial Highlights & Ratios
PEG Ratio0.73
Price to Book (P/B)1.88
Price to Sales (P/S)1.22
P/FCF Ratio9.56
Enterprise Value/Market Cap1.16
Enterprise Value/Revenue1.23
Enterprise Value/Gross Profit2.44
Enterprise Value/Ebitda9.02
Forecast
1Y Price Target
$38.00Price Target Upside-3.06% Downside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)3.35
Revenue Forecast (FY)$9.57B
Old Republic International Business Overview & Revenue Model
Company Description
Old Republic International Corporation, through its subsidiaries, engages in the insurance underwriting and related services business primarily in the United States and Canada. The company operates through three segments: General Insurance, Title ...
How the Company Makes Money
ORI makes money mainly through its insurance operations and investment income on its invested assets. In its General Insurance segment, ORI generates revenue primarily by underwriting specialty commercial insurance (earning premiums), then paying ...
Old Republic International Earnings Call Summary
Earnings Call Date:Jan 22, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 23, 2026
Earnings Call Sentiment Positive
The call presents a generally positive full-year performance with key strengths: record specialty pretax income, double-digit book value growth, robust title revenue gains, solid investment yields, and significant capital returns. However, the fourth quarter showed softer operating income and higher combined ratios, driven primarily by accelerating commercial auto loss trends, a workers' comp reserve/credit loss, and a rising expense ratio in specialty due to strategic investments. Management emphasized conservative reserving, disciplined underwriting and accelerated rate actions in response to loss trends, and expects to maintain profitability and capital flexibility into 2026.Positive Updates
Strong Full-Year Operating Income and Book Value Growth
Full-year consolidated pretax operating income of $1.0 billion; operating return on beginning equity of 14.1%; book value per share increased 22% (including dividends), ending the quarter at $24.21.
Negative Updates
Quarterly Declines in Consolidated Operating Income
Consolidated pretax operating income in Q4 was $236 million versus $285 million in Q4 2024; net operating income fell to $185 million from $227 million and EPS declined to $0.74 from $0.90 quarter-over-quarter.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Full-Year Operating Income and Book Value Growth
Full-year consolidated pretax operating income of $1.0 billion; operating return on beginning equity of 14.1%; book value per share increased 22% (including dividends), ending the quarter at $24.21.
Read all positive updates
Company Guidance
Management said 2026 should be a “very consistent” year, targeting specialty combined ratios roughly in line with 2025’s full‑year 93.2% (Q4 specialty 97.3%; consolidated Q4 combined ratio 96%, FY 94.7%) while continuing to price to observed loss trends (commercial auto rate increases accelerated to ~16% in Q4 after raising the accident‑year loss pick by ~3 pts to address mid‑teens trends). They warned net investment income growth will slow in 2026 despite a stronger bond portfolio (book yield 4.75% vs 4.5% YE; corporate bond reinvestment ~4.6% vs roll‑offs ~4.2%), expect title to see further improvement (commercial title up to ~20% y/y per industry data; residential single‑digit growth) and operational gains from the Qualia rollout, and they reiterated capital flexibility (nearly $700M of dividends declared in the quarter, $56M repurchased in Q4, just over $1B returned in 2025, and about $850M remaining on the repurchase program).Old Republic International Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
78
Positive
Cash Flow
38
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 9.09B | 8.23B | 7.26B | 8.08B | 9.34B |
| Gross Profit | 4.58B | 5.21B | 4.68B | 5.66B | 6.94B |
| EBITDA | 1.24B | 1.15B | 817.90M | 924.10M | 1.98B |
| Net Income | 936.10M | 852.70M | 598.60M | 686.40M | 1.53B |
Balance Sheet | |||||
| Total Assets | 29.92B | 27.84B | 26.50B | 25.16B | 24.98B |
| Cash, Cash Equivalents and Short-Term Investments | 263.20M | 3.04B | 13.38B | 12.69B | 11.40B |
| Total Debt | 1.78B | 1.59B | 1.59B | 1.60B | 1.59B |
| Total Liabilities | 16.51B | 22.22B | 20.09B | 18.99B | 18.09B |
| Stockholders Equity | 5.91B | 5.62B | 6.41B | 6.17B | 6.89B |
Cash Flow | |||||
| Free Cash Flow | 1.16B | 1.23B | 880.40M | 1.17B | 1.31B |
| Operating Cash Flow | 1.16B | 1.23B | 880.40M | 1.17B | 1.31B |
| Investing Cash Flow | -177.20M | -7.20M | 25.30M | -415.00M | -936.50M |
| Financing Cash Flow | -925.70M | -1.23B | -783.20M | -832.70M | -335.70M |
Old Republic International Technical Analysis
Negative
39.20
Price Trends
40.85
Negative
41.00
Negative
38.63
Negative
Market Momentum
-0.79
Positive
30.72
Neutral
11.77
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ORI, the sentiment is Negative. The current price of 39.2 is below the 20-day moving average (MA) of 40.72, below the 50-day MA of 40.85, and above the 200-day MA of 38.63, indicating a bearish trend. The MACD of -0.79 indicates Positive momentum. The RSI at 30.72 is Neutral, neither overbought nor oversold. The STOCH value of 11.77 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ORI.
Old Republic International Risk Analysis
Old Republic International disclosed 22 risk factors in its most recent earnings report. Old Republic International reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Old Republic International Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $37.35B | 10.14 | 21.37% | 1.55% | 7.11% | 22.52% | |
73 Outperform | $19.02B | 16.80 | 10.26% | 3.44% | 12.33% | ― | |
70 Outperform | $9.63B | 11.89 | 15.32% | 6.98% | 7.08% | -4.36% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $10.50B | 4.30 | 14.36% | 5.77% | -6.19% | ― | |
67 Neutral | $40.29B | 15.62 | 7.50% | 2.02% | -23.02% | 52.43% | |
46 Neutral | $10.68B | 15.82 | -152.32% | 2.15% | 7.70% | -155.12% |
* Financial Sector Average
ORI
Old Republic International
39.20
3.72
10.47%
AEG
Aegon
6.96
0.59
9.21%
AIG
American International Group
74.34
-8.00
-9.71%
HIG
Hartford Insurance
135.41
14.77
12.24%
PFG
Principal Financial
87.72
5.31
6.44%
EQH
Equitable Holdings
37.57
-15.24
-28.86%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.