Old Republic International (ORI) AI Stock Analysis

• Market Cap: $9.69B
• Dividend Yield: 6.98%
• Average Volume (3M): 1.67M
• Price to Earnings (P/E): 10.5
• Beta (1Y): 0.38
• Revenue Growth: 7.08%
• EPS Growth: -4.36%
• Country: US
• Employees: 9,400
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Diversified
• EPS (TTM): 0.74
• Shares Outstanding: 247,450,000
• 10 Day Avg. Volume: 2,324,229
• 30 Day Avg. Volume: 1,671,516
• PEG Ratio: 0.20
• Price to Book (P/B): 1.66
• Price to Sales (P/S): 1.14
• P/FCF Ratio: 7.58
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: 1.08
• Enterprise Value/Gross Profit: 1.71
• Enterprise Value/Ebitda: 8.41
• 1Y Price Target: $38.00
• Price Target Upside: -2.99% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 3.35
• Revenue Forecast (FY): $9.57B

• Rating: 78 Outperform
• Price Target: $49.00 ▲(25.10% Upside)

ORI scores well primarily on strong financial performance (notably cash flow strength and conservative leverage) and attractive valuation (moderate P/E with a very high dividend yield). The earnings call adds confidence in consistency and capital returns but is tempered by commercial auto loss trends and weaker Q4 underwriting metrics. Technicals are supportive but not strongly bullish.

Positive Factors

Strong cash generation

Exceptional cash conversion (OCF/net income 57.12 and FCF growth ~7.4% TTM) provides durable liquidity to fund underwriting volatility, technology and specialty investments, sustain dividends and buybacks, and preserve capital flexibility across the next several quarters.

Conservative balance sheet

A low debt-to-equity ratio (0.25) and a mid-teens ROE indicate conservative leverage and efficient equity use, reducing financial risk and supporting sustained underwriting capacity, reinsurance flexibility and capital returns while weathering loss volatility over a multi-month horizon.

Diversified specialty and title growth

Double-digit specialty growth and improving title performance (specialty pretax record and strong title revenue gains) broaden revenue mix. Continued rollout of new specialty operating companies and Qualia platform creates durable diversification and operational leverage for sustainable profit improvement.

Negative Factors

Rising combined ratios

Worsening combined ratios signal underwriting strain: a higher loss and expense mix reduces underwriting profitability and free cash generation potential. If persistent, this forces higher pricing, tighter underwriting or reserve adjustments that can weigh on sustainable earnings over the medium term.

Accelerating commercial auto losses

Sharp deterioration in commercial auto loss trends and larger accident-year picks indicate structural claims or severity shifts. Even with accelerated pricing, sustained higher loss trends can compress specialty margins and require prolonged rate actions or stricter underwriting to restore profitability.

Rising specialty expense ratio from investments

Higher specialty expense ratio reflects investments in new operating companies, tech modernization and data/AI. While strategic, these elevated expenses can depress underwriting margins near-term and may take multiple quarters to convert into efficiency gains and scalable income streams.

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 Insurance, and the Republic Financial Indemnity Group Run-off Business. The General Insurance segment offers automobile extended warranty, aviation, commercial automobile, commercial multi-peril, commercial property, general liability, home warranty, inland marine, travel accident, and workers' compensation insurance products; and financial indemnity products for specialty coverages, including errors and omissions, fidelity, guaranteed asset protection, and surety. This segment provides its insurance products to businesses, government, and other institutions in transportation, commercial construction, healthcare, education, retail and wholesale trade, forest products, energy, general manufacturing, and financial services industries. The Title Insurance segment offers lenders' and owners' title insurance policies to real estate purchasers and investors based upon searches of the public records. This segment also provides escrow closing and construction disbursement services; and real estate information products, national default management services, and various other services pertaining to real estate transfers and loan transactions. The Republic Financial Indemnity Group Run-off Business segment offers private mortgage insurance coverage that protects mortgage lenders and investors from default related losses on residential mortgage loans made primarily to homebuyers. The company was founded in 1923 and is based in Chicago, Illinois.

How the Company Makes Money

Old Republic International generates revenue primarily through its insurance premiums, which are collected from policyholders in exchange for coverage against various risks. The company earns money by underwriting insurance policies, where it assesses risks and charges premiums accordingly. Additionally, ORI has a significant revenue stream from its title insurance operations, which involves insuring property titles against defects and claims. Investment income is another crucial revenue source, as ORI invests the premiums it collects in various financial instruments, generating returns. The company also engages in reinsurance agreements and has strategic partnerships with other insurance providers, which can enhance its market reach and revenue potential.

Old Republic International Financial Statement Overview

Summary

Strong overall fundamentals supported by excellent cash generation (very strong operating cash flow vs. net income and solid free cash flow growth), healthy profitability, and conservative leverage (low debt-to-equity). The main offset is a relatively low gross margin and some limits to balance-sheet detail.

Income Statement

Old Republic International shows strong revenue growth in the TTM period with a 95.5% increase, indicating robust business expansion. The company maintains healthy profit margins, with a net profit margin of 9.53% and an EBIT margin of 12.82% in the TTM. However, the gross profit margin is relatively low at 13.87%, suggesting potential cost management issues. Overall, the income statement reflects a positive growth trajectory with solid profitability.

Balance Sheet

The company's balance sheet is stable with a low debt-to-equity ratio of 0.25 in the TTM, indicating conservative leverage. Return on equity is decent at 13.82%, reflecting efficient use of equity capital. However, the equity ratio is not explicitly provided, which limits a full assessment of asset financing. Overall, the balance sheet demonstrates financial stability with manageable debt levels.

Cash Flow

Cash flow analysis reveals a strong free cash flow growth rate of 7.40% in the TTM, highlighting effective cash management. The operating cash flow to net income ratio is exceptionally high at 57.12, indicating strong cash generation relative to net income. The free cash flow to net income ratio is consistently at 1.0, suggesting efficient conversion of earnings into cash. Overall, the cash flow statement reflects excellent liquidity and cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.75B	8.23B	7.26B	8.08B	9.34B	7.17B
Gross Profit	5.51B	5.21B	4.68B	5.66B	6.94B	4.69B
EBITDA	1.12B	1.15B	817.90M	924.10M	1.98B	732.10M
Net Income	834.00M	852.70M	598.60M	686.40M	1.53B	558.60M
Balance Sheet
Total Assets	30.25B	27.84B	26.50B	25.16B	24.98B	22.82B
Cash, Cash Equivalents and Short-Term Investments	3.14B	3.04B	13.38B	12.69B	11.40B	11.37B
Total Debt	1.59B	1.59B	1.59B	1.60B	1.59B	966.40M
Total Liabilities	23.81B	22.22B	20.09B	18.99B	18.09B	16.63B
Stockholders Equity	6.42B	5.62B	6.41B	6.17B	6.89B	6.19B
Cash Flow
Free Cash Flow	1.29B	1.23B	880.40M	1.17B	1.31B	1.19B
Operating Cash Flow	1.29B	1.23B	880.40M	1.17B	1.31B	1.19B
Investing Cash Flow	-139.10M	-7.20M	25.30M	-415.00M	-936.50M	-845.20M
Financing Cash Flow	-1.43B	-1.23B	-783.20M	-832.70M	-335.70M	-300.00M

Old Republic International Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 39.17
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 39.17 is below the 20-day moving average (MA) of 41.49, below the 50-day MA of 42.19, and above the 200-day MA of 37.83, indicating a neutral trend. The MACD of -1.00 indicates Positive momentum. The RSI at 35.78 is Neutral, neither overbought nor oversold. The STOCH value of 31.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ORI.

Old Republic International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ORI	78 Outperform	$9.69B	10.53	16.22%	6.98%	7.08%	-4.36%
HIG	77 Outperform	$37.63B	10.14	21.66%	1.55%	7.11%	22.52%
PFG	75 Outperform	$20.81B	13.79	13.74%	3.44%	12.33%	―
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
AEG	67 Neutral	$11.65B	8.60	14.42%	5.77%	-6.19%	―
AIG	64 Neutral	$40.40B	13.42	7.68%	2.02%	-23.02%	52.43%
EQH	40 Underperform	$13.30B	-16.76	-41.33%	2.15%	7.70%	-155.12%

Old Republic International Corporate Events

Old Republic Announces Special Cash Dividend

On December 12, 2025, Old Republic International Corporation announced a special cash dividend of $2.50 per share, payable on January 14, 2026, returning approximately $620 million to shareholders. This decision reflects the company’s strong performance and commitment to capital allocation, complementing its ongoing share repurchase program and focus on profitable growth, technology investments, and strategic acquisitions.

The most recent analyst rating on (ORI) stock is a Buy with a $51.00 price target. To see the full list of analyst forecasts on Old Republic International stock, see the ORI Stock Forecast page.