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Old Republic International Corp. (ORI)
NYSE:ORI
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Old Republic International (ORI) AI Stock Analysis

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ORI

Old Republic International

(NYSE:ORI)

Rating:76Outperform
Price Target:
$45.00
▲(9.52% Upside)
Old Republic International's strong valuation and robust financial performance are the primary drivers of its stock score. The positive impact of the share repurchase program further enhances its attractiveness. However, technical indicators suggest caution due to potential overbought conditions, and challenges in the Title Insurance segment slightly temper the overall outlook.
Positive Factors
General Insurance Growth
The General Insurance segment showed strong growth with net earned premiums increasing by 14%, beating the estimated 10%.
Specialty Insurance Performance
Old Republic's Specialty Insurance segment exceeded expectations with strong premium growth and favorable underwriting income.
Negative Factors
Revenue and Earnings Uncertainty
There are ongoing concerns about revenue and earnings uncertainty in the Title Insurance segment and broader market reserve and inflation issues in commercial auto and general liability.
Title Insurance Challenges
The Title Insurance segment underperformed due to higher-than-expected expense ratios and lower premium growth.

Old Republic International (ORI) vs. SPDR S&P 500 ETF (SPY)

Old Republic International Business Overview & Revenue Model

Company DescriptionOld Republic International Corporation (ORI) is a diversified insurance holding company based in the United States. Established in 1923, ORI operates primarily in the property and casualty insurance sector, including title insurance, general liability, and workers' compensation. The company also has interests in other financial services, such as mortgage guaranty and specialty insurance, providing a broad range of products tailored to various industries and individual needs.
How the Company Makes MoneyOld Republic International generates revenue primarily through premiums collected from its insurance policies. The company's main revenue streams include underwriting income from its property and casualty insurance segments, which covers various risks, and title insurance premiums that protect against losses from property ownership disputes. ORI also earns investment income from its substantial portfolio of investments, which includes bonds and equities. Additionally, the company benefits from strategic partnerships with other financial institutions and real estate companies, enhancing its distribution channels and expanding its market reach. By maintaining a diversified portfolio and focusing on risk management, ORI is able to sustain stable earnings and growth.

Old Republic International Earnings Call Summary

Earnings Call Date:Jul 24, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 23, 2025
Earnings Call Sentiment Neutral
The earnings call highlights strong performance in Specialty Insurance and overall growth in investment income and net operating income. However, the Title Insurance segment faces challenges due to market conditions and legal expenses, and the company is cautious about entering the cyber insurance market. The strong growth and profitability in key segments are slightly offset by challenges in Title Insurance.
Q2-2025 Updates
Positive Updates
Consolidated Pretax Operating Income Growth
Old Republic International produced $267.5 million of consolidated pretax operating income, up from $253.8 million in the second quarter of '24.
Specialty Insurance Segment Performance
Net premiums earned by Specialty Insurance grew by 14.6% in the second quarter, with a pretax operating income of $253.7 million, up from $202.5 million last year. The combined ratio improved to 90.7 from 92.4.
Increase in Net Operating Income
Net operating income was $209 million for the quarter compared to $202 million last year, with a 9% increase in per-share basis.
Investment Income Growth
Net investment income increased by 2.4% due to higher yields on the bond portfolio, with an average reinvestment rate of 5% compared to 4% previously.
Healthy Book Value Increase
Book value per share increased by 12.6% to $25.14, driven by strong operating earnings and higher investment valuations.
Strong Renewal Retention in Specialty Insurance
Renewal retentions across Specialty Insurance lines remain above 85%, attributed to strong service and long-term commitments.
Expansion and Growth in Auto Warranty Segment
The auto warranty segment experienced growth due to several new key partnerships.
Negative Updates
Decline in Title Insurance Pretax Operating Income
Title Insurance pretax operating income decreased to $24.2 million from $46 million in the previous year, with a combined ratio increase to 99% from 95.4%.
Title Insurance Market Challenges
The real estate and mortgage market conditions have shown little change, affecting Title Insurance's profitability.
Legal Settlement Impact on Title Expense Ratio
The Title Insurance expense ratio increased to 96.1% from 93.1% due to costs from the settlement of a legal matter.
Uncertainty in Cyber Insurance Pricing
The cyber insurance market has seen rate decreases, and the company is cautious about entering until pricing is adequate.
Company Guidance
During the second quarter of 2025, Old Republic International reported a consolidated pretax operating income of $267.5 million, up from $253.8 million in the same period last year. The consolidated combined ratio slightly increased to 93.6 from 93.5 a year ago. Specialty Insurance saw a 14.6% increase in net premiums earned and a pretax operating income rise to $253.7 million from $202.5 million last year, with a combined ratio improvement to 90.7 from 92.4. In the Title Insurance segment, despite higher mortgage rates and a slow real estate market, premiums and fees grew by 5.2%, although pretax operating income dropped to $24.2 million from $46 million, with a combined ratio increase to 99 from 95.4. The company reported net operating income of $209 million for the quarter, a 9% year-over-year increase, and a book value per share of $25.14, up 12.6% due to strong operating earnings and higher investment valuations. The company's balance sheet remains robust, with continued investment in new specialty underwriting subsidiaries, technology, and talent.

Old Republic International Financial Statement Overview

Summary
Old Republic International demonstrates strong financial health with consistent revenue growth and solid profitability margins. The balance sheet is robust with low leverage and high return on equity. However, there is a slight concern with the decline in free cash flow growth, although cash generation remains strong.
Income Statement
78
Positive
Old Republic International shows a solid financial performance with a consistent revenue growth rate of 4.05% in the TTM period. The company maintains healthy margins, with a gross profit margin of 63.11% and a net profit margin of 10.31%. The EBIT margin is also strong at 13.84%, indicating efficient operational management. However, the EBITDA margin has decreased to 7.09% in the TTM, suggesting increased depreciation or amortization expenses.
Balance Sheet
82
Very Positive
The balance sheet of Old Republic International is robust, with a low debt-to-equity ratio of 0.26, indicating conservative leverage. The return on equity is commendable at 14.79%, reflecting effective use of equity capital. The equity ratio stands at 21.14%, suggesting a stable financial structure with a good proportion of equity financing.
Cash Flow
70
Positive
The cash flow statement reveals a slight decline in free cash flow growth by 7.87% in the TTM, which could be a concern if it continues. However, the operating cash flow to net income ratio is exceptionally high at 279.53, indicating strong cash generation relative to net income. The free cash flow to net income ratio remains stable at 1.0, demonstrating consistent cash flow management.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue8.67B8.23B7.26B8.08B9.34B7.17B
Gross Profit5.47B5.21B7.26B5.66B6.94B7.17B
EBITDA614.10M1.15B817.90M924.10M1.98B732.10M
Net Income893.40M852.70M598.60M686.40M1.53B558.60M
Balance Sheet
Total Assets29.26B27.84B26.50B25.16B24.98B22.82B
Cash, Cash Equivalents and Short-Term Investments178.10M3.04B2.82B12.69B11.40B11.37B
Total Debt1.59B1.59B1.59B1.60B1.59B966.40M
Total Liabilities23.05B22.22B20.09B18.99B18.09B16.63B
Stockholders Equity6.19B5.62B6.41B6.17B6.89B6.19B
Cash Flow
Free Cash Flow1.20B1.23B880.40M1.17B1.31B1.19B
Operating Cash Flow1.20B1.23B880.40M1.17B1.31B1.19B
Investing Cash Flow356.50M-7.20M25.30M-415.00M-936.50M-845.20M
Financing Cash Flow-1.55B-1.23B-783.20M-832.70M-335.70M-300.00M

Old Republic International Technical Analysis

Technical Analysis Sentiment
Positive
Last Price41.09
Price Trends
50DMA
37.79
Positive
100DMA
37.60
Positive
200DMA
36.66
Positive
Market Momentum
MACD
0.87
Negative
RSI
74.78
Negative
STOCH
89.97
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ORI, the sentiment is Positive. The current price of 41.09 is above the 20-day moving average (MA) of 39.10, above the 50-day MA of 37.79, and above the 200-day MA of 36.66, indicating a bullish trend. The MACD of 0.87 indicates Negative momentum. The RSI at 74.78 is Negative, neither overbought nor oversold. The STOCH value of 89.97 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$37.09B11.9619.55%1.54%7.67%15.99%
76
Outperform
$9.94B11.3314.63%7.63%14.20%50.32%
75
Outperform
$44.90B15.027.61%2.02%-33.87%-5.72%
73
Outperform
$17.81B16.1010.16%3.71%-3.34%-3.32%
71
Outperform
$15.80B42.5534.30%1.89%5.05%-47.26%
69
Neutral
$11.82B8.6114.42%5.84%-6.19%
68
Neutral
$18.05B11.7310.24%3.73%9.66%1.70%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ORI
Old Republic International
41.09
8.82
27.33%
AEG
Aegon
7.55
1.91
33.87%
AIG
American International Group
81.73
11.32
16.08%
HIG
Hartford Financial
134.70
22.09
19.62%
PFG
Principal Financial
81.30
6.59
8.82%
EQH
Equitable Holdings
54.07
15.27
39.36%

Old Republic International Corporate Events

Stock Buyback
Old Republic Announces $750M Share Repurchase Program
Positive
Aug 19, 2025

On August 19, 2025, Old Republic International Corporation announced a new $750 million share repurchase program, which will begin after the completion of their $1.10 billion program announced in March 2024. This decision reflects the company’s strong balance sheet and confidence in its growth potential, as it continues a history of prudent capital management, having returned over $4.2 billion to shareholders since 2020 through dividends and share repurchases.

Shareholder MeetingsBusiness Operations and Strategy
Old Republic’s Shareholders Approve Key Proposals
Neutral
May 28, 2025

On May 22, 2025, Old Republic International held its Annual Meeting of Shareholders where three proposals were voted on. Shareholders elected directors, ratified KPMG LLP as the independent accounting firm for 2025, and approved executive compensation. These decisions reflect the company’s ongoing governance and operational strategies, potentially impacting its market positioning and stakeholder relations.

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.Date of analysis: Aug 22, 2025