Old Republic International (ORI) AI Stock Analysis

• Market Cap: $10.53B
• Dividend Yield: 6.98%
• Average Volume (3M): 2.05M
• Price to Earnings (P/E): 11.5
• Beta (1Y): 0.36
• 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: 1,990,388
• 30 Day Avg. Volume: 2,048,792
• PEG Ratio: 0.73
• Price to Book (P/B): 1.88
• Price to Sales (P/S): 1.22
• P/FCF Ratio: -7.95K
• Enterprise Value/Market Cap: 1.13
• Enterprise Value/Revenue: 1.31
• Enterprise Value/Gross Profit: 2.61
• Enterprise Value/Ebitda: 9.65
• 1Y Price Target: $38.00
• Price Target Upside: -11.36% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 3.35
• Revenue Forecast (FY): $9.57B

• Rating: 70 Outperform
• Price Target: $47.00 ▲(9.63% Upside)
• Action: Reiterated Date: 02/27/26
• Date: Action: Reiterated 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 and stable debt-to-equity range with sizable equity and mid‑teens ROE supports capital resiliency. This durable capital base increases the firm's ability to absorb underwriting volatility, maintain ratings, pursue selective M&A, and sustain capital returns without levering excessively.

Scale and profitability in specialty insurance

Consistent double‑digit specialty premium growth and record pretax income demonstrate strengthening market position and diversified revenue. Scaling specialty lines improves underwriting leverage and lessens reliance on cyclical segments, supporting more durable earnings and margin stability over multiple quarters.

Proven capital return capacity and flexibility

A track record of large dividends and buybacks signals persistent capital generation and disciplined allocation. Maintaining substantial repurchase capacity while returning capital indicates management confidence and structural flexibility to reward shareholders or redeploy capital into growth when underwriting economics permit.

Negative Factors

Sharp 2025 cash-flow deterioration

A collapse in operating cash flow is a material structural concern: it constrains claim funding, reinvestment, and capital returns without asset sales or financing. Even if timing or reserve items explain some change, sustained weak cash conversion would reduce financial flexibility and pressure long‑term capital allocation.

Accelerating commercial auto loss trends

Worsening commercial auto losses create a structural drag on underwriting margins and elevate combined ratios. Persistent mid‑teens loss trends require sustained rate actions and tighter underwriting, and they can depress profitability for several quarters while premium growth and mix adjust to cover higher loss costs.

Rising specialty expense ratio from strategic investments

Elevated expense ratios driven by investments compress underwriting returns until scale or productivity gains materialize. If expense inflation persists, the company must either extract synergies, raise rates, or accept lower underwriting profitability, creating a multi‑quarter headwind to margin sustainability.

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

Income statement and balance sheet are solid (stable profitability, healthy ROE, and conservative leverage), but the 2025 cash-flow reversal (operating cash flow at $0 and slightly negative free cash flow versus strong positive prior years) is a material near-term quality risk that pulls the score down.

Income Statement

Profitability remains solid for a diversified insurer, with net margins holding around ~10% in 2024–2025 and EBIT margin in the mid-teens. Revenue has re-accelerated in 2025 (up ~3.9% after near-flat growth in 2024), and net income improved versus 2023–2024. The main weakness is a clear step-down versus 2021 profitability (when margins and earnings were materially higher), and gross margin has trended lower from earlier years, suggesting a less favorable underwriting/income mix compared with peak levels.

Balance Sheet

Leverage looks conservative and stable: debt-to-equity stays roughly in the ~0.23–0.28 range from 2021–2025, supporting balance-sheet resilience. Equity remains sizable (~$5.9B in 2025) and returns on equity are healthy in 2024–2025 (~15–16%), improving from 2022–2023 levels. A watch item is that total assets and equity move around year-to-year (including an equity dip from 2023 to 2024), but overall the capital position and leverage profile appear well-managed.

Cash Flow

Cash generation is the weak spot in the latest period: 2025 shows operating cash flow at $0 and free cash flow slightly negative, a sharp deterioration from consistently strong positive free cash flow in 2020–2024 (roughly $0.9B–$1.3B annually). While prior years indicate strong cash conversion versus net income, the 2025 reversal raises questions about working capital/claims timing or reporting volatility, and it meaningfully reduces near-term cash-flow quality based on the provided data.

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	1.59B	1.59B	1.59B	1.60B	1.59B
Total Liabilities	24.00B	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	-1.40M	1.23B	880.40M	1.17B	1.31B
Operating Cash Flow	0.00	1.23B	880.40M	1.17B	1.31B
Investing Cash Flow	-1.40M	-7.20M	25.30M	-415.00M	-936.50M
Financing Cash Flow	0.00	-1.23B	-783.20M	-832.70M	-335.70M

Old Republic International Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 42.87
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 42.87 is above the 20-day moving average (MA) of 41.60, above the 50-day MA of 42.02, and above the 200-day MA of 38.47, indicating a bullish trend. The MACD of 0.29 indicates Negative momentum. The RSI at 60.15 is Neutral, neither overbought nor oversold. The STOCH value of 72.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ORI.

Old Republic International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HIG	79 Outperform	$38.85B	10.58	21.66%	1.55%	7.11%	22.52%
PFG	73 Outperform	$20.69B	18.17	10.32%	3.44%	12.33%	―
ORI	70 Outperform	$10.53B	11.52	16.22%	6.98%	7.08%	-4.36%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
AEG	67 Neutral	$11.36B	8.28	14.42%	5.77%	-6.19%	―
AIG	67 Neutral	$43.19B	14.83	7.40%	2.02%	-23.02%	52.43%
EQH	46 Neutral	$11.28B	-8.33	-182.66%	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.