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Old Republic International Corp. (ORI)
NYSE:ORI
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Old Republic International
(NYSE:ORI)
Rating:75Outperform
Price Target:―
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)
Market Cap
$9.41B
Dividend Yield8.21%
Average Volume (3M)1.50M
Price to Earnings (P/E)10.7
Beta (1Y)0.44
Revenue Growth14.20%
EPS Growth50.32%
CountryUS
Employees9,400
SectorFinancial
Sector Strength71
IndustryInsurance - Diversified
Share Statistics
EPS (TTM)0.83
Shares Outstanding248,469,740
10 Day Avg. Volume1,336,088
30 Day Avg. Volume1,496,837
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.20
Enterprise Value/Revenue1.35
Enterprise Value/Gross Profit1.89
Enterprise Value/Ebitda76.07
Forecast
1Y Price Target
$41.00Price Target Upside8.21% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Old Republic International Business Overview & Revenue Model
Company DescriptionOld 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 MoneyOld Republic International (ORI) generates revenue primarily through the underwriting and sale of insurance policies across its two main business segments: General Insurance and Title Insurance. In the General Insurance Group, ORI offers various types of insurance products, including property, liability, and workers' compensation insurance, earning premiums from policyholders. The Title Insurance Group contributes to revenue by providing title insurance policies, which protect real estate owners and lenders from financial losses related to defects in the title of a property. Additionally, ORI earns investment income from its portfolio of invested assets, which includes bonds and equities, that supports its insurance operations. The company's financial performance is bolstered by its strategic partnerships with independent agents and brokers, who help distribute its insurance products to a broad client base.
Old Republic International Earnings Call Summary
Earnings Call Date:Jul 24, 2025
(Q2-2025)
| % Change Since: 3.47%|
Next Earnings Date:Oct 23, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive sentiment with strong growth and profitability in Specialty Insurance, increased investment income, and a significant increase in book value per share. However, challenges in the Title Insurance segment and real estate market conditions were noted, with a decline in profitability in Title Insurance and increased expense ratios. Despite these lowlights, the overall performance and strategic initiatives indicate a robust outlook.Q2-2025 Updates
Positive Updates
Increased Pretax Operating Income
The company produced $267.5 million of consolidated pretax operating income, up from $253.8 million in the second quarter of 2024.
Growth in Specialty Insurance
Specialty Insurance net premiums earned grew by 14.6% in the second quarter, and pretax operating income increased from $202.5 million to $253.7 million.
Strong Investment Returns
Net investment income increased by 2.4% due to higher yields on the bond portfolio, with the total bond portfolio book yield at 4.7% compared to 4.5% at the end of last year.
Book Value Per Share Growth
The book value per share increased by over 12.6%, primarily driven by strong operating earnings and higher investment valuations.
High Retention Rates
The company experienced renewal retentions north of 85% across all lines of business and subsidiaries.
Expansion of E&S Presence
Excess and Surplus (E&S) direct written premiums were up 12% for the year.
Negative Updates
Decline in Title Insurance Profitability
Title Insurance pretax operating income decreased to $24.2 million from $46 million in the second quarter of last year, with the combined ratio increasing to 99% from 95.4%.
Challenges in Real Estate Market
Despite a 5% increase in Title Insurance revenue, the real estate and mortgage market conditions remain challenging with high mortgage interest rates.
Higher Expense Ratio in Title Insurance
The Title Insurance expense ratio increased to 96.1% from 93.1% in the second quarter of 2024 due to settlement costs of a legal matter.
Limited Share Repurchases
No shares were repurchased during the quarter, and repurchases since the end of the quarter were not material.
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 second quarter of 2024. The company's consolidated combined ratio was 93.6, slightly higher than the previous year's 93.5. Specialty Insurance saw a 14.6% increase in net premiums earned, resulting in $253.7 million of pretax operating income and a combined ratio of 90.7, improved from 92.4 last year. Title Insurance grew premiums and fees by 5.2% but experienced a decrease in pretax operating income to $24.2 million from $46 million, with a combined ratio of 99 compared to last year's 95.4. The company highlighted ongoing investments in technology and new specialty underwriting subsidiaries, while maintaining a strong balance sheet. Net operating income for the quarter was $209 million, an increase from $202 million the previous year, with net investment income rising 2.4% due to higher bond yields. Book value per share increased by 12.6% to $25.14, and $71 million was paid in regular cash dividends.Old Republic International Financial Statement Overview
Summary
Old Republic International demonstrates solid financial health with strong revenue growth and a debt-free balance sheet. However, the absence of recent EBIT and EBITDA metrics and declining free cash flow pose potential concerns for operational efficiency.Income Statement
Old Republic International shows a strong revenue growth of 13.4% in the latest year, coupled with a high gross profit margin consistently at 100%. However, the absence of EBIT and EBITDA metrics in recent years suggests a potential decline in operational profitability tracking.72
Positive
Balance Sheet
The company maintains a robust balance sheet with no debt as of the latest year, reflecting strong financial stability. The equity ratio stands at 20.2%, indicating a well-capitalized position. An increasing trend in stockholders' equity further enhances financial strength.85
Very Positive
Cash Flow
Despite the lack of operating cash flow data in the latest year, previous periods show consistent free cash flow, though there is a notable decline in free cash flow in the current year. Historical operating cash flow to net income ratios indicate efficient cash management.65
Positive
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 8.23B | 7.26B | 8.08B | 9.34B | 7.17B |
| Gross Profit | 5.21B | 7.26B | 8.08B | 9.34B | 7.17B |
| EBITDA | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Net Income | 852.70M | 598.60M | 686.40M | 1.53B | 558.60M |
Balance Sheet | |||||
| Total Assets | 27.84B | 26.50B | 25.16B | 24.98B | 22.82B |
| Cash, Cash Equivalents and Short-Term Investments | 3.04B | 2.82B | 12.69B | 11.40B | 11.37B |
| Total Debt | 1.59B | 1.59B | 1.60B | 1.59B | 966.40M |
| Total Liabilities | 22.22B | 20.09B | 18.99B | 1.84B | 1.10B |
| Stockholders Equity | 5.62B | 6.41B | 6.17B | 6.89B | 6.19B |
Cash Flow | |||||
| Free Cash Flow | 1.23B | 880.40M | 1.17B | 1.31B | 1.19B |
| Operating Cash Flow | 1.23B | 880.40M | 1.17B | 1.31B | 1.19B |
| Investing Cash Flow | -3.90M | 25.30M | -415.00M | -936.50M | -845.20M |
| Financing Cash Flow | -1.23B | -783.20M | -832.70M | -335.70M | -300.00M |
Old Republic International Technical Analysis
Positive
37.89
Price Trends
37.08
Positive
37.31
Positive
36.14
Positive
Market Momentum
0.10
Negative
62.05
Neutral
96.02
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 37.89 is above the 20-day moving average (MA) of 36.62, above the 50-day MA of 37.08, and above the 200-day MA of 36.14, indicating a bullish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 62.05 is Neutral, neither overbought nor oversold. The STOCH value of 96.02 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 (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $36.28B | 11.70 | 19.55% | 1.57% | 7.67% | 15.99% | |
78 Outperform | $32.76B | 9.07 | 17.09% | ― | 23.79% | -32.09% | |
77 Outperform | $5.04B | 10.80 | 8.56% | ― | 10.70% | -39.16% | |
75 Outperform | $9.41B | 10.73 | 14.63% | 8.21% | 14.20% | 50.32% | |
72 Outperform | $17.21B | 15.55 | 10.16% | 3.87% | -3.34% | -3.32% | |
64 Neutral | $3.23B | 75.28 | 60.58% | ― | 23.49% | 60.38% | |
58 Neutral | HK$111.68B | 6.59 | -4.20% | 3.97% | 9.04% | -46.99% |
* Financial Sector Average
Performance Comparison
ORI
Old Republic International
37.89
6.26
19.79%
ACGL
Arch Capital Group
87.78
-8.88
-9.19%
ESGR
Enstar Group
337.91
17.41
5.43%
HIG
Hartford Financial
129.02
20.72
19.13%
PFG
Principal Financial
77.24
3.06
4.13%
GSHD
GooseHead Insurance
86.07
5.23
6.47%
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.