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Old Republic International Corp. (ORI)
NYSE:ORI
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Old Republic International
(NYSE:ORI)
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Rating:76Outperform
Price Target:
$45.00
▲(7.24% 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
Strong Financial Health
A robust balance sheet with low leverage and high return on equity indicates financial stability and effective capital management, supporting long-term growth.
Specialty Insurance Growth
Growth in the Specialty Insurance segment highlights strong market demand and effective underwriting, contributing to sustained revenue and profitability.
Share Repurchase Program
The share repurchase program reflects confidence in the company's growth potential and enhances shareholder value through prudent capital management.
Negative Factors
Title Insurance Segment Challenges
Declining profitability in the Title Insurance segment due to market conditions could impact overall earnings and requires strategic adjustments.
Free Cash Flow Decline
A decline in free cash flow growth may limit investment opportunities and financial flexibility if the trend continues, affecting long-term operations.
Cyber Insurance Market Uncertainty
Uncertainty in the cyber insurance market presents challenges in pricing and risk management, potentially affecting future growth in this segment.
Old Republic International (ORI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$10.43B
Dividend Yield7.47%
Average Volume (3M)1.23M
Price to Earnings (P/E)11.7
Beta (1Y)0.43
Revenue Growth14.20%
EPS Growth50.32%
CountryUS
Employees9,400
SectorFinancial
Sector Strength70
IndustryInsurance - Diversified
Share Statistics
EPS (TTM)0.83
Shares Outstanding248,469,740
10 Day Avg. Volume1,377,777
30 Day Avg. Volume1,231,207
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.08
Enterprise Value/Revenue1.30
Enterprise Value/Gross Profit2.06
Enterprise Value/Ebitda18.33
Forecast
1Y Price Target
$46.00Price Target Upside9.63% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
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
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.78
Positive
Balance Sheet
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.82
Very Positive
Cash Flow
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.70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 8.67B | 8.23B | 7.26B | 8.08B | 9.34B | 7.17B |
| Gross Profit | 5.47B | 5.21B | 7.26B | 5.66B | 6.94B | 7.17B |
| EBITDA | 614.10M | 1.15B | 817.90M | 924.10M | 1.98B | 732.10M |
| Net Income | 893.40M | 852.70M | 598.60M | 686.40M | 1.53B | 558.60M |
Balance Sheet | ||||||
| Total Assets | 29.26B | 27.84B | 26.50B | 25.16B | 24.98B | 22.82B |
| Cash, Cash Equivalents and Short-Term Investments | 178.10M | 3.04B | 2.82B | 12.69B | 11.40B | 11.37B |
| Total Debt | 1.59B | 1.59B | 1.59B | 1.60B | 1.59B | 966.40M |
| Total Liabilities | 23.05B | 22.22B | 20.09B | 18.99B | 18.09B | 16.63B |
| Stockholders Equity | 6.19B | 5.62B | 6.41B | 6.17B | 6.89B | 6.19B |
Cash Flow | ||||||
| Free Cash Flow | 1.20B | 1.23B | 880.40M | 1.17B | 1.31B | 1.19B |
| Operating Cash Flow | 1.20B | 1.23B | 880.40M | 1.17B | 1.31B | 1.19B |
| Investing Cash Flow | 356.50M | -7.20M | 25.30M | -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
Positive
41.96
Price Trends
38.57
Positive
37.86
Positive
36.83
Positive
Market Momentum
0.69
Negative
70.78
Negative
91.52
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 41.96 is above the 20-day moving average (MA) of 40.34, above the 50-day MA of 38.57, and above the 200-day MA of 36.83, indicating a bullish trend. The MACD of 0.69 indicates Negative momentum. The RSI at 70.78 is Negative, neither overbought nor oversold. The STOCH value of 91.52 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 | 37.43B | 11.93 | 18.52% | 1.56% | 7.67% | 15.99% | |
78 Outperform | 33.92B | 9.39 | 16.21% | ― | 23.79% | -32.09% | |
76 Outperform | $10.43B | 11.67 | 14.63% | 7.47% | 14.20% | 50.32% | |
73 Outperform | 18.41B | 16.41 | 14.17% | 3.66% | -3.34% | -3.32% | |
63 Neutral | 2.81B | 65.55 | -38.05% | ― | 23.49% | 60.38% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
Performance Comparison
ORI
Old Republic International
41.96
9.48
29.19%
AEG
Aegon
7.95
1.88
30.97%
AIG
American International Group
77.98
6.30
8.79%
HIG
Hartford Financial
133.11
17.43
15.07%
PFG
Principal Financial
82.62
-0.15
-0.18%
EQH
Equitable Holdings
52.39
11.19
27.16%
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.