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

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ORI

Old Republic International

(NYSE:ORI)

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Outperform 74 (OpenAI - 5.2)
Rating:74Outperform
Price Target:
$48.00
â–²(13.50% Upside)
Action:Reiterated
Date:08/01/26
The score is driven primarily by solid fundamentals (profitability and ROE) tempered by weaker recent cash flow and higher leverage. Supportive secondary factors include an attractive valuation (low P/E and high dividend yield) and a positive technical backdrop with the stock trading above key moving averages. The latest earnings call adds a modestly positive tilt due to accretive acquisition guidance and improving investment income, partially offset by near-term underwriting/expense and reserve pressures.
Positive Factors
Title Insurance Strength
Title operations generated strong, scalable revenue and improved profitability driven by higher volumes and efficiency (expense ratio improved). Title fees are structurally linked to real estate transaction activity and settlement services, providing durable fee income and margin uplift that diversifies P&C underwriting cyclicality.
Negative Factors
Weakened Cash Generation
Operating and free cash flow contraction materially reduces internal funding for claims, buybacks or special dividends. Lower cash conversion versus reported earnings weakens liquidity buffers and increases reliance on capital markets or debt to fund deployments, elevating execution risk if cash flow recovery lags.
Read all positive and negative factors
Positive Factors
Negative Factors
Title Insurance Strength
Title operations generated strong, scalable revenue and improved profitability driven by higher volumes and efficiency (expense ratio improved). Title fees are structurally linked to real estate transaction activity and settlement services, providing durable fee income and margin uplift that diversifies P&C underwriting cyclicality.
Read all positive factors

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

Old Republic International Business Overview & Revenue Model

Company Description
Old Republic International Corporation (ORI), through its various subsidiary entities, specializes in insurance underwriting and related services, primarily conducting business in the United States and Canada. The company organizes its operations ...
How the Company Makes Money
ORI makes money primarily from (1) underwriting income and (2) investment income generated from the float (premiums and other funds held before claims are paid), plus (3) fees for certain services—especially within its title operations. 1) Specia...

Old Republic International Earnings Call Summary

Earnings Call Date:Jul 23, 2026
(Q2-2026)
|
% Change Since: |
Next Earnings Date:Oct 22, 2026
Earnings Call Sentiment Neutral
The call presented a mix of clear strengths — notably strong title revenue and profitability, book value growth, higher investment income, and an accretive acquisition (ECM) — alongside meaningful near-term challenges including lower consolidated and specialty earnings, reserve strengthening in a runoff business ($40M), and higher expense ratios driven by necessary IT and AI investments. Management communicated confidence in long-term benefits from modernization and the accretive outlook for ECM, while acknowledging short-term profit and reserve pressures.
Positive Updates
Title Insurance Revenue and Profitability Surge
Title premium and fee revenue of $773M, up 11% year-over-year; pretax operating income increased to $56M from $24M; title combined ratio improved to 95.1% from 99.0%; expense ratio improved 4 percentage points to 92.1% driven by operational efficiency and higher transaction volumes.
Negative Updates
Consolidated Pretax Operating Income Decline
Consolidated pretax operating income of $238M compared with $268M in the prior-year quarter (down $30M).
Read all updates
Q2-2026 Updates
Negative
Title Insurance Revenue and Profitability Surge
Title premium and fee revenue of $773M, up 11% year-over-year; pretax operating income increased to $56M from $24M; title combined ratio improved to 95.1% from 99.0%; expense ratio improved 4 percentage points to 92.1% driven by operational efficiency and higher transaction volumes.
Read all positive updates
Company Guidance
Management reiterated that the ECM acquisition should produce a bargain purchase gain next quarter and be accretive to 2026 earnings and book value (ECM 2025 direct premiums ~ $220M, GAAP equity ~ $145M, expected combined ratio target 90–95); they expect continued opportunistic share repurchases (Q2 repurchases $61M, ~$640M remaining authorization) and may consider a special dividend if excess capital exists. Key metrics called out: consolidated Q2 pre‑tax operating income $238M (vs $268M Y/Y), consolidated combined ratio 95.3% (93.6), annualized operating return on beginning equity 12.1%, net operating income $186M (vs $209M), comparable EPS $0.76 (vs $0.83), book value per share $25.33 (up 7.2% YTD incl. dividends), paid nearly $77M of dividends. Investment metrics: net investment income up ~6%, investment income up ~6%, bond portfolio book yield 4.80%, corporate bonds acquired avg 4.90% vs rolloff ~4.20%. Specialty: net premiums earned +2.3% Y/Y, pretax operating income $199M (vs $254M), combined ratio 95.5% (90.7), NPW +1.6% excluding noise, commercial auto NPW +3.6% with loss ratio 69.4% and rate increases in the high teens, workers’ comp NPW −8.4% with loss ratio 60.6%. Title: premiums & fees $773M (+11% Y/Y), direct +9%, agency +12% (agency = 78% of revenue), commercial = 25% of premiums, pretax operating income $56M (vs $24M), title combined ratio 95.1% (99), title expense ratio 92.1% (96.1), YTD combined ratio 97.4% with objective to drive below 95%.

Old Republic International Financial Statement Overview

Summary
Fundamentals are solid: strong TTM revenue and earnings with healthy profitability (net margin ~11.8%, operating margin ~15.5%) and attractive ROE (~18.7%). Offsetting this, cash generation has weakened meaningfully (TTM OCF/FCF about $0.80B vs. ~$1.16–$1.23B in 2024–2025) and leverage has ticked up (debt ~0.38x equity), reducing quality-of-earnings comfort.
Income Statement
78
Positive
Balance Sheet
73
Positive
Cash Flow
57
Neutral
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue9.67B9.09B8.23B7.26B8.08B9.34B
Gross Profit5.02B4.58B5.21B4.68B5.66B6.94B
EBITDA1.50B1.24B1.15B850.90M952.40M2.01B
Net Income1.14B936.10M852.70M598.60M686.40M1.53B
Balance Sheet
Total Assets31.59B29.86B27.84B26.50B25.16B24.98B
Cash, Cash Equivalents and Short-Term Investments2.65B3.23B13.70B13.38B12.69B11.40B
Total Debt2.28B1.59B1.59B1.59B1.60B3.18B
Total Liabilities25.50B23.93B22.22B20.09B18.99B18.09B
Stockholders Equity6.07B5.91B5.62B6.41B6.17B6.89B
Cash Flow
Free Cash Flow1.56B1.16B1.23B880.40M1.17B1.31B
Operating Cash Flow1.56B1.16B1.23B880.40M1.17B1.31B
Investing Cash Flow34.50M-177.20M-7.20M25.30M-415.00M-936.50M
Financing Cash Flow-1.42B-925.70M-1.23B-783.20M-832.70M-335.70M

Old Republic International Technical Analysis

Technical Analysis Sentiment
Positive
Last Price42.29
Price Trends
50DMA
40.43
Positive
100DMA
40.06
Positive
200DMA
40.33
Positive
Market Momentum
MACD
0.84
Negative
RSI
61.13
Neutral
STOCH
72.70
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 42.29 is below the 20-day moving average (MA) of 42.43, above the 50-day MA of 40.43, and above the 200-day MA of 40.33, indicating a bullish trend. The MACD of 0.84 indicates Negative momentum. The RSI at 61.13 is Neutral, neither overbought nor oversold. The STOCH value of 72.70 is Neutral, 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
78
Outperform
$38.44B9.0922.99%1.65%5.95%39.99%
77
Outperform
$24.34B16.1513.03%2.92%3.72%41.16%
74
Outperform
$10.52B9.2318.74%8.77%12.13%29.71%
72
Outperform
$41.66B13.747.70%2.34%-2.31%26.43%
68
Neutral
$18.00B11.429.92%3.81%9.73%1.22%
61
Neutral
$14.19B13.2911.63%5.08%33.06%50.47%
55
Neutral
$13.01B-16.96624.66%2.31%-19.35%-175.55%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ORI
Old Republic International
43.52
9.49
27.89%
AEG
Aegon
9.50
2.57
37.05%
AIG
American International Group
80.12
5.31
7.09%
HIG
Hartford Insurance
143.60
18.58
14.86%
PFG
Principal Financial
114.85
41.93
57.50%
EQH
Equitable Holdings
51.30
2.29
4.66%

Old Republic International Corporate Events

Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Old Republic Acquires ECM to Expand Agricultural Insurance
Positive
Jul 1, 2026
On June 30, 2026, Old Republic International announced that members of Everett Cash Mutual Insurance Co. approved converting ECM from a mutual insurer into a stock company, to be renamed ECM Insurance Company, and agreed to its acquisition by Old ...
Executive/Board ChangesShareholder Meetings
Old Republic Shareholders Back Leadership, Auditor, and Pay Plans
Positive
May 27, 2026
At Old Republic International Corporation’s Annual Meeting of Shareholders held on May 21, 2026, investors elected directors Barbara A. Adachi and Craig R. Smiddy, confirming the existing leadership slate. The voting results showed strong su...
Private Placements and FinancingRegulatory Filings and Compliance
Old Republic Issues $700 Million Senior Notes Offering
Neutral
May 18, 2026
On May 13, 2026, Old Republic International priced a registered underwritten public offering of $700 million in 5.700% Senior Notes due 2036, issued under its long-standing indenture framework with Wilmington Trust Company as trustee. The notes, r...
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 01, 2026