OLD REPUBLIC REPORTS RESULTS FOR THE SECOND QUARTER AND FIRST HALF 2025
Old Republic International (NYSE: ORI) reported strong Q2 2025 financial results, with net income of $204.4 million, up significantly from $91.8 million in Q2 2024. The company achieved net operating income of $209.2 million, a 3.3% increase year-over-year, with earnings per diluted share rising 9.2% to $0.83.
Key highlights include consolidated net premiums and fees earned of nearly $2 billion (up 11.0%), net investment income of $171.5 million (up 2.4%), and a consolidated combined ratio of 93.6%. The company's book value per share increased 12.6% to $25.14 since year-end 2024, with an impressive annualized operating return on equity of 14.6%.
The Specialty Insurance segment showed particularly strong performance with a 14.6% increase in net premiums earned and a favorable combined ratio of 90.7%, while the Title Insurance segment faced some challenges with lower pretax operating income despite revenue growth.
Old Republic International (NYSE: ORI) ha riportato risultati finanziari solidi nel secondo trimestre del 2025, con un utile netto di 204,4 milioni di dollari, in netto aumento rispetto ai 91,8 milioni di dollari del secondo trimestre 2024. L'azienda ha raggiunto un utile operativo netto di 209,2 milioni di dollari, con un incremento del 3,3% su base annua, e un utile per azione diluita cresciuto del 9,2%, attestandosi a 0,83 dollari.
I punti salienti includono premi netti consolidati e commissioni guadagnate per quasi 2 miliardi di dollari (in aumento dell'11,0%), un reddito netto da investimenti di 171,5 milioni di dollari (in crescita del 2,4%) e un rapporto combinato consolidato del 93,6%. Il valore contabile per azione è cresciuto del 12,6%, raggiungendo 25,14 dollari dalla fine del 2024, con un rendimento operativo annualizzato sul capitale proprio del 14,6%.
Il segmento Specialty Insurance ha mostrato una performance particolarmente positiva, con un aumento del 14,6% dei premi netti guadagnati e un favorevole rapporto combinato del 90,7%, mentre il segmento Title Insurance ha incontrato alcune difficoltà, registrando un utile operativo ante imposte inferiore nonostante la crescita dei ricavi.
Old Republic International (NYSE: ORI) reportó sólidos resultados financieros en el segundo trimestre de 2025, con un ingreso neto de 204,4 millones de dólares, un aumento significativo respecto a los 91,8 millones de dólares del segundo trimestre de 2024. La compañía logró un ingreso operativo neto de 209,2 millones de dólares, un incremento del 3,3% interanual, con ganancias por acción diluida que aumentaron un 9,2% hasta 0,83 dólares.
Los aspectos destacados incluyen primas netas consolidadas y comisiones ganadas de casi 2 mil millones de dólares (un aumento del 11,0%), ingresos netos por inversiones de 171,5 millones de dólares (un 2,4% más) y una tasa combinada consolidada del 93,6%. El valor contable por acción aumentó un 12,6% hasta 25,14 dólares desde finales de 2024, con un rendimiento operativo anualizado sobre el capital del 14,6%.
El segmento de Specialty Insurance mostró un desempeño especialmente fuerte con un aumento del 14,6% en primas netas ganadas y una tasa combinada favorable del 90,7%, mientras que el segmento de Title Insurance enfrentó algunos desafíos con menores ingresos operativos antes de impuestos a pesar del crecimiento de ingresos.
Old Republic International (NYSE: ORI)는 2025년 2분기 강력한 재무 실적을 보고했으며, 순이익 2억 440만 달러로 2024년 2분기의 9,180만 달러에서 크게 증가했습니다. 회사는 순영업이익 2억 920만 달러를 달성하며 전년 대비 3.3% 증가했고, 희석 주당순이익은 9.2% 상승한 0.83달러를 기록했습니다.
주요 성과로는 통합 순보험료 및 수수료 수입이 거의 20억 달러(11.0% 증가), 순투자수익 1억 7,150만 달러(2.4% 증가), 통합 결합비율 93.6%가 포함됩니다. 회사의 주당 장부가치는 2024년 말 이후 12.6% 증가하여 25.14달러가 되었으며, 인상적인 연환산 영업자기자본수익률 14.6%을 기록했습니다.
특수보험 부문은 순보험료 수입이 14.6% 증가하고 결합비율이 90.7%로 우수한 성과를 보였으나, 타이틀 보험 부문은 매출 증가에도 불구하고 세전 영업이익이 감소하는 어려움을 겪었습니다.
Old Republic International (NYSE : ORI) a annoncé de solides résultats financiers pour le deuxième trimestre 2025, avec un revenu net de 204,4 millions de dollars, en nette augmentation par rapport à 91,8 millions de dollars au deuxième trimestre 2024. La société a réalisé un revenu opérationnel net de 209,2 millions de dollars, soit une hausse de 3,3 % d'une année sur l'autre, avec un bénéfice par action diluée en hausse de 9,2 % à 0,83 dollar.
Les points clés incluent des primes nettes consolidées et des frais gagnés de près de 2 milliards de dollars (en hausse de 11,0 %), un revenu net d'investissement de 171,5 millions de dollars (en hausse de 2,4 %) et un ratio combiné consolidé de 93,6 %. La valeur comptable par action a augmenté de 12,6 % pour atteindre 25,14 dollars depuis la fin 2024, avec un rendement opérationnel annualisé des capitaux propres de 14,6 %.
Le segment Specialty Insurance a affiché une performance particulièrement solide avec une augmentation de 14,6 % des primes nettes gagnées et un ratio combiné favorable de 90,7 %, tandis que le segment Title Insurance a rencontré certaines difficultés avec un revenu opérationnel avant impôts en baisse malgré une croissance du chiffre d'affaires.
Old Republic International (NYSE: ORI) meldete starke Finanzergebnisse für das zweite Quartal 2025 mit einem Nettoeinkommen von 204,4 Millionen US-Dollar, was einen deutlichen Anstieg gegenüber 91,8 Millionen US-Dollar im zweiten Quartal 2024 darstellt. Das Unternehmen erzielte ein Netto-Betriebsergebnis von 209,2 Millionen US-Dollar, eine Steigerung von 3,3 % im Jahresvergleich, wobei der Gewinn je verwässerter Aktie um 9,2 % auf 0,83 US-Dollar anstieg.
Wichtige Highlights sind konsolidierte Nettoprämien und verdiente Gebühren von fast 2 Milliarden US-Dollar (plus 11,0 %), Nettokapitalerträge von 171,5 Millionen US-Dollar (plus 2,4 %) und eine konsolidierte kombinierte Schadenquote von 93,6 %. Der Buchwert je Aktie stieg seit Jahresende 2024 um 12,6 % auf 25,14 US-Dollar, mit einer beeindruckenden annualisierten operativen Eigenkapitalrendite von 14,6 %.
Der Bereich Specialty Insurance zeigte eine besonders starke Leistung mit einem Anstieg der verdienten Nettoprämien um 14,6 % und einer günstigen kombinierten Schadenquote von 90,7 %, während der Bereich Title Insurance trotz Umsatzwachstum mit einem niedrigeren vorsteuerlichen Betriebsergebnis zu kämpfen hatte.
- Net income increased significantly to $204.4 million from $91.8 million YoY
- Net operating income per diluted share grew 9.2% to $0.83
- Consolidated net premiums and fees earned increased 11.0% to nearly $2 billion
- Book value per share rose 12.6% since year-end 2024
- Strong annualized operating return on equity of 14.6%
- Specialty Insurance segment showed 14.6% growth in net premiums earned
- Title Insurance segment pretax operating income declined 47.2% to $24.2 million
- Title Insurance combined ratio deteriorated to 99.0% from 95.4%
- Title Insurance segment incurred $15 million in litigation settlement expenses
- Unrealized investment losses of $4.9 million from changes in equity securities fair value
Insights
ORI delivered solid Q2 results with 3.3% operating income growth, driven by strong Specialty segment performance despite Title segment challenges.
Old Republic reported a $204.4 million net income for Q2 2025, significantly higher than the $91.8 million reported in Q2 2024. However, when excluding investment effects, the net operating income of $209.2 million represents a more modest 3.3% year-over-year increase. This translated to $0.83 operating EPS, up 9.2% from the prior year.
The company's consolidated combined ratio remained essentially stable at 93.6% versus 93.5% last year, indicating disciplined underwriting practices in a challenging insurance market. Net premiums and fees earned grew impressively by 11.0% to nearly $2 billion, demonstrating robust top-line expansion.
Segment performance showed a tale of two businesses: the Specialty Insurance segment delivered exceptional results with pretax operating income up 25.3% to $253.7 million and an improved combined ratio of 90.7% (down from 92.4%). Commercial auto led premium growth, with continued rate increases in commercial auto, general liability, and property lines. The favorable 2.9 point impact from prior year reserve developments boosted profitability.
In contrast, the Title Insurance segment struggled with pretax operating income declining 47.2% to $24.2 million and a deteriorating combined ratio of 99.0% (up from 95.4%). While agency revenues grew 7%, the segment faced $15 million in litigation settlement expenses that added 2.1 percentage points to the expense ratio.
Management's long-term focus continues with $71.8 million returned to shareholders and book value per share up 12.6% since year-end 2024 to $25.14. The annualized operating ROE of 14.6% demonstrates efficient capital utilization despite mixed segment performance.
- Net income of
$204.4 million $91.8 million - Net income excluding investment gains (losses) (net operating income) of
$209.2 million 3.3% . - Net operating income per diluted share of
$0.83 $0.76 9.2% . - Consolidated net premiums and fees earned of nearly
$2 billion 11.0% . - Net investment income of
$171.5 million 2.4% . - Consolidated combined ratio of
93.6% , compared to93.5% last year. - Favorable loss reserve development of 2.1 points, compared to 2.2 points last year.
- Book value per share of
$25.14 12.6% since year-end 2024. - Annualized operating return on equity of
14.6% . - Total capital returned to shareholders of
$71.8 million
Dollar amounts (other than per share amounts) are presented in millions, except as otherwise indicated. |
OVERALL RESULTS ATTRIBUTABLE TO SHAREHOLDERS | ||||||||||||
Quarters Ended June 30, | Six Months Ended June 30, | |||||||||||
2025 | 2024 | % Change | 2025 | 2024 | % Change | |||||||
Net income | $ 204.4 | $ 91.8 | $ 449.5 | $ 408.6 | ||||||||
Net of tax investment gains (losses) | (4.7) | (110.6) | 38.5 | 21.4 | ||||||||
Net income excluding investment gains (losses) | $ 209.2 | $ 202.4 | 3.3 % | $ 410.9 | $ 387.2 | 6.1 % | ||||||
Combined ratio | 93.6 % | 93.5 % | 93.7 % | 93.8 % | ||||||||
PER DILUTED SHARE ATTRIBUTABLE TO SHAREHOLDERS | ||||||||||||
Quarters Ended June 30, | Six Months Ended June 30, | |||||||||||
2025 | 2024 | % Change | 2025 | 2024 | % Change | |||||||
Net income | $ 0.81 | $ 0.35 | $ 1.79 | $ 1.51 | ||||||||
Net of tax investment gains (losses) | (0.02) | (0.41) | 0.15 | 0.08 | ||||||||
Net income excluding investment gains (losses) | $ 0.83 | $ 0.76 | 9.2 % | $ 1.64 | $ 1.43 | 14.7 % | ||||||
SHAREHOLDERS' EQUITY (BOOK VALUE) | ||||||||||||
June 30, | Dec. 31, | |||||||||||
2025 | 2024 | % Change | ||||||||||
Total | $ 6,185.6 | $ 5,618.9 | 10.1 % | |||||||||
Per common share | $ 25.14 | $ 22.84 | 10.1 % | |||||||||
Old Republic's business is managed for the long run. In this context, management's key objectives are to achieve highly profitable operating results over the long term, and to ensure balance sheet strength for the insurance underwriting subsidiaries' obligations. Although Generally Accepted Accounting Principles (GAAP) uses net income as the measure of total profitability, management uses net income excluding net investments gains (losses) (net operating income), a non-GAAP financial measure, in its evaluation of periodic and long-term results.
In management's opinion, excluding investment gains (losses) from income provides a better way to analyze, evaluate, and establish accountability for the results of the insurance operations. The inclusion of realized investment gains (losses) in net income can mask trends in operating results because such realizations are often highly discretionary. Similarly, the inclusion of unrealized investment gains (losses) in equity securities can further distort such operating results with significant period-to-period fluctuations that are unrelated to the insurance operations. Net operating income, however, does not replace GAAP net income as a measure of total profitability.
FINANCIAL HIGHLIGHTS | ||||||||||||
Quarters Ended June 30, | Six Months Ended June 30, | |||||||||||
SUMMARY INCOME STATEMENTS: | 2025 | 2024 | % Change | 2025 | 2024 | % Change | ||||||
Revenues: | ||||||||||||
Net premiums and fees earned | $ 1,994.6 | $ 1,797.4 | 11.0 % | $ 3,835.7 | $ 3,440.1 | 11.5 % | ||||||
Net investment income | 171.5 | 167.4 | 2.4 | 342.2 | 331.6 | 3.2 | ||||||
Other income | 49.6 | 47.3 | 4.9 | 96.8 | 89.2 | 8.5 | ||||||
Total operating revenues | 2,215.8 | 2,012.2 | 10.1 | 4,274.9 | 3,861.0 | 10.7 | ||||||
Net investment gains (losses): | ||||||||||||
Realized from actual transactions and | ||||||||||||
impairments | (2.4) | (54.1) | 34.9 | 126.2 | ||||||||
Unrealized from changes in fair value of | ||||||||||||
equity securities | (4.9) | (86.3) | 12.7 | (99.6) | ||||||||
Total net investment gains (losses) | (7.3) | (140.5) | 47.7 | 26.6 | ||||||||
Total revenues | 2,208.5 | 1,871.7 | 4,322.6 | 3,887.6 | ||||||||
Operating expenses: | ||||||||||||
Loss and loss adjustment expenses | 830.6 | 741.5 | 12.0 | 1,608.4 | 1,439.0 | 11.8 | ||||||
Underwriting, acquisition, and other expenses | 1,099.9 | 994.5 | 10.6 | 2,110.7 | 1,897.8 | 11.2 | ||||||
Interest and other expenses | 17.6 | 22.2 | (20.6) | 35.5 | 38.7 | (8.3) | ||||||
Total expenses | 1,948.3 | 1,758.3 | 10.8 % | 3,754.6 | 3,375.5 | 11.2 % | ||||||
Pretax income | 260.1 | 113.3 | 567.9 | 512.1 | ||||||||
Income taxes | 51.7 | 21.4 | 113.3 | 103.4 | ||||||||
Total net income | 208.4 | 91.8 | 454.5 | 408.6 | ||||||||
Net income attributable to noncontrolling interests | 3.9 | — | 5.0 | — | ||||||||
Net income to shareholders | $ 204.4 | $ 91.8 | $ 449.5 | $ 408.6 | ||||||||
COMMON STOCK STATISTICS: | ||||||||||||
Components of net income per share: | ||||||||||||
Basic net income excluding investment gains (losses) | $ 0.85 | $ 0.77 | 10.4 % | $ 1.68 | $ 1.45 | 15.9 % | ||||||
Net investment gains (losses): | ||||||||||||
Realized investment gains (losses) | (0.01) | (0.16) | 0.11 | 0.38 | ||||||||
Unrealized from changes in fair value of | ||||||||||||
equity securities | (0.01) | (0.26) | 0.05 | (0.30) | ||||||||
Basic net income | $ 0.83 | $ 0.35 | $ 1.84 | $ 1.53 | ||||||||
Diluted net income excluding investment gains (losses) | $ 0.83 | $ 0.76 | 9.2 % | $ 1.64 | $ 1.43 | 14.7 % | ||||||
Net investment gains (losses): | ||||||||||||
Realized investment gains (losses) | (0.01) | (0.16) | 0.11 | 0.37 | ||||||||
Unrealized from changes in fair value of | ||||||||||||
equity securities | (0.01) | (0.25) | 0.04 | (0.29) | ||||||||
Diluted net income | $ 0.81 | $ 0.35 | $ 1.79 | $ 1.51 | ||||||||
Cash dividends declared on common stock | $ 0.290 | $ 0.265 | 9.4 % | $ 0.580 | $ 0.530 | 9.4 % | ||||||
The information presented in the following table highlights the most meaningful indicators of Old Republic's segmented and consolidated financial performance. The information underscores the performance of the Company's insurance underwriting subsidiaries, as well as the sound investment of their capital and underwriting cash flows.
Sources of Consolidated Income | |||||||||||
Quarters Ended June 30, | Six Months Ended June 30, | ||||||||||
2025 | 2024 | % Change | 2025 | 2024 | % Change | ||||||
Net premiums and fees earned: | |||||||||||
Specialty Insurance | 14.6 % | 13.8 % | |||||||||
Title Insurance | 697.8 | 663.4 | 5.2 | 1,302.9 | 1,208.8 | 7.8 | |||||
Corporate & Other | 2.3 | 4.3 | (46.6) | 4.6 | 9.9 | (53.5) | |||||
Consolidated | 11.0 % | 11.5 % | |||||||||
Underwriting income (loss): (a) | |||||||||||
Specialty Insurance | $ 119.9 | $ 85.1 | 40.9 % | $ 246.1 | $ 190.9 | 28.9 % | |||||
Title Insurance | 6.9 | 30.2 | (76.9) | (5.2) | 16.7 | (131.5) | |||||
Corporate & Other | (13.3) | (6.6) | (98.9) | (27.4) | (15.1) | (81.0) | |||||
Consolidated | $ 113.6 | $ 108.6 | 4.6 % | $ 213.4 | $ 192.5 | 10.9 % | |||||
Consolidated combined ratio: | |||||||||||
Loss ratio: | |||||||||||
Current year | 43.7 % | 43.5 % | 44.2 % | 44.1 % | |||||||
Prior years | (2.1) | (2.2) | (2.3) | (2.3) | |||||||
Total | 41.6 | 41.3 | 41.9 | 41.8 | |||||||
Expense ratio | 52.0 | 52.2 | 51.8 | 52.0 | |||||||
Combined ratio | 93.6 % | 93.5 % | 93.7 % | 93.8 % | |||||||
Net investment income: | |||||||||||
Specialty Insurance | $ 149.9 | $ 132.9 | 12.8 % | $ 299.9 | $ 264.0 | 13.6 % | |||||
Title Insurance | 17.3 | 15.5 | 11.8 | 34.0 | 31.2 | 9.2 | |||||
Corporate & Other | 4.2 | 19.0 | (77.5) | 8.2 | 36.4 | (77.4) | |||||
Consolidated | $ 171.5 | $ 167.4 | 2.4 % | $ 342.2 | $ 331.6 | 3.2 % | |||||
Interest and other expenses (income): | |||||||||||
Specialty Insurance | $ 16.1 | $ 15.4 | $ 32.1 | $ 31.9 | |||||||
Title Insurance | — | (0.3) | 0.1 | (0.4) | |||||||
Corporate & Other (b) | 1.5 | 7.0 | 3.2 | 7.2 | |||||||
Consolidated | $ 17.6 | $ 22.2 | (20.6) % | $ 35.5 | $ 38.7 | (8.3) % | |||||
Pretax income excluding investment gains (losses): | |||||||||||
Specialty Insurance | $ 253.7 | $ 202.5 | 25.3 % | $ 513.9 | $ 422.9 | 21.5 % | |||||
Title Insurance | 24.2 | 46.0 | (47.2) | 28.6 | 48.4 | (40.8) | |||||
Corporate & Other | (10.5) | 5.2 | N/M | (22.3) | 14.0 | N/M | |||||
Consolidated | 267.5 | 253.8 | 5.4 % | 520.2 | 485.4 | 7.2 % | |||||
Income taxes | 54.3 | 51.3 | 104.1 | 98.2 | |||||||
Net income excluding investment | |||||||||||
gains (losses) | 213.2 | 202.4 | 5.3 % | 416.0 | 387.2 | 7.4 % | |||||
Consolidated pretax investment gains (losses): | |||||||||||
Realized from actual transactions | |||||||||||
and impairments | (2.4) | (54.1) | 34.9 | 126.2 | |||||||
Unrealized from changes in | |||||||||||
fair value of equity securities | (4.9) | (86.3) | 12.7 | (99.6) | |||||||
Total | (7.3) | (140.5) | 47.7 | 26.6 | |||||||
Income taxes (credits) | (2.6) | (29.9) | 9.1 | 5.2 | |||||||
Net of tax investment gains (losses) | (4.7) | (110.6) | 38.5 | 21.4 | |||||||
Total net income | 208.4 | 91.8 | 454.5 | 408.6 | |||||||
Net income attributable to | |||||||||||
noncontrolling interests | 3.9 | — | 5.0 | — | |||||||
Net income to shareholders | $ 204.4 | $ 91.8 | $ 449.5 | $ 408.6 | |||||||
(a) Includes related services. |
(b) Includes consolidation/elimination entries. |
Specialty Insurance Segment Operating Results |
Quarters Ended June 30, | Six Months Ended June 30, | ||||||||||
2025 | 2024 | % Change | 2025 | 2024 | % Change | ||||||
Net premiums written | 9.1 % | 9.5 % | |||||||||
Net premiums earned | 1,294.5 | 1,129.6 | 14.6 | 2,528.1 | 2,221.3 | 13.8 | |||||
Net investment income | 149.9 | 132.9 | 12.8 | 299.9 | 264.0 | 13.6 | |||||
Other income | 49.3 | 47.0 | 5.0 | 96.4 | 88.8 | 8.7 | |||||
Operating revenues | 1,493.8 | 1,309.6 | 14.1 | 2,924.6 | 2,574.1 | 13.6 | |||||
Loss and loss adjustment expenses | 809.6 | 726.5 | 11.4 | 1,570.7 | 1,410.8 | 11.3 | |||||
Underwriting, acquisition, and other expenses | 414.2 | 364.9 | 13.5 | 807.7 | 708.3 | 14.0 | |||||
Interest and other expenses | 16.1 | 15.4 | 4.2 | 32.1 | 31.9 | 0.5 | |||||
Operating expenses | 1,240.0 | 1,107.0 | 12.0 | 2,410.6 | 2,151.2 | 12.1 | |||||
Segment pretax operating income | $ 253.7 | $ 202.5 | 25.3 % | $ 513.9 | $ 422.9 | 21.5 % | |||||
Loss ratio: | |||||||||||
Current year | 65.4 % | 66.8 % | 65.2 % | 66.0 % | |||||||
Prior years | (2.9) | (2.5) | (3.1) | (2.5) | |||||||
Total | 62.5 | 64.3 | 62.1 | 63.5 | |||||||
Expense ratio | 28.2 | 28.1 | 28.1 | 27.9 | |||||||
Combined ratio | 90.7 % | 92.4 % | 90.2 % | 91.4 % | |||||||
Specialty Insurance net premiums earned increased
The net investment income increase for both periods was driven by higher investment yields earned, along with contributions from a higher invested asset base.
Overall, the 2025 loss ratios for Specialty Insurance reflect slightly higher levels of favorable prior year loss reserve development and improved current year loss ratios. Favorable development came predominately from workers' compensation and property, partially offset by unfavorable development in general liability. The improvement in current year loss ratios came predominately from workers' compensation and short-tailed lines of coverage including property and auto physical damage, partially offset by general liability. The expense ratios are in line with expectations and include start-up costs of new underwriting subsidiaries and investments in information technology, partially offset by the benefit of scale from continued earned premium growth.
Together, these factors produced a profitable combined ratio and strong pretax operating income for the quarter and first six months. For Specialty Insurance, combined ratios between
Title Insurance Segment Operating Results |
Quarters Ended June 30, | Six Months Ended June 30, | ||||||||||
2025 | 2024 | % Change | 2025 | 2024 | % Change | ||||||
Net premiums and fees earned | $ 697.8 | $ 663.4 | 5.2 % | 7.8 % | |||||||
Net investment income | 17.3 | 15.5 | 11.8 | 34.0 | 31.2 | 9.2 | |||||
Other income | 0.1 | 0.3 | (37.9) | 0.3 | 0.4 | (32.0) | |||||
Operating revenues | 715.3 | 679.2 | 5.3 | 1,337.3 | 1,240.5 | 7.8 | |||||
Loss and loss adjustment expenses | 20.3 | 15.3 | 32.8 | 36.3 | 27.4 | 32.6 | |||||
Underwriting, acquisition, and other expenses | 670.7 | 618.2 | 8.5 | 1,272.1 | 1,165.1 | 9.2 | |||||
Interest and other expenses (income) | — | (0.3) | 104.1 | 0.1 | (0.4) | 136.4 | |||||
Operating expenses | 691.0 | 633.2 | 9.1 | 1,308.7 | 1,192.1 | 9.8 | |||||
Segment pretax operating income | $ 24.2 | $ 46.0 | (47.2) % | $ 28.6 | $ 48.4 | (40.8) % | |||||
Loss ratio: | |||||||||||
Current year | 3.5 % | 3.5 % | 3.5 % | 3.5 % | |||||||
Prior years | (0.6) | (1.2) | (0.7) | (1.2) | |||||||
Total | 2.9 | 2.3 | 2.8 | 2.3 | |||||||
Expense ratio | 96.1 | 93.1 | 97.6 | 96.3 | |||||||
Combined ratio | 99.0 % | 95.4 % | 100.4 % | 98.6 % | |||||||
Title Insurance net premiums and fees earned increased
Net investment income increased, reflecting higher investment yields earned on a slightly lower invested asset base.
The Title Insurance loss ratio increased due to a lower level of favorable prior year loss reserve development than in 2024. The second quarter and first half of 2025 expense ratios included approximately
Together, these factors produced lower pretax operating income for the quarter and first six months. For Title Insurance, combined ratios between
Corporate & Other Operating Results |
Quarters Ended June 30, | Six Months Ended June 30, | |||||||||||
2025 | 2024 | % Change | 2025 | 2024 | % Change | |||||||
Net premiums earned | $ 2.3 | $ 4.3 | (46.6) % | $ 4.6 | $ 9.9 | (53.5) % | ||||||
Net investment income (a) | 4.2 | 19.0 | (77.5) | 8.2 | 36.4 | (77.4) | ||||||
Operating revenues | 6.6 | 23.3 | (71.5) | 12.8 | 46.2 | (72.2) | ||||||
Operating expenses | 17.2 | 18.1 | (4.8) % | 35.2 | 32.2 | 9.5 % | ||||||
Corporate & Other pretax operating income (loss) | $ (10.5) | $ 5.2 | N/M | $ (22.3) | $ 14.0 | N/M | ||||||
(a) Net of elimination entries. |
Corporate & Other includes a small life and accident insurance business, the RFIG Run-off business through the date of its sale of May 31, 2024, the parent holding company, and several internal corporate services subsidiaries. Corporate & Other tends to produce highly variable results stemming from volatility inherent in the lack of scale. Net investment income for both periods was significantly impacted by a lower invested asset base due to the return of capital to shareholders, including the January 2025 special cash dividend payment, and the sale of the RFIG Run-off business.
Consolidated Balance Sheets |
June 30, | December 31, | ||
2025 | 2024 | ||
Assets: | |||
Fixed income securities (at fair value) | $ 12,357.2 | $ 12,091.5 | |
Equity securities (at fair value) | 2,567.8 | 2,540.7 | |
Short-term investments (at fair value which approximates cost) | 1,215.4 | 1,403.7 | |
Other investments | 28.9 | 42.8 | |
Cash | 178.1 | 201.9 | |
Accrued investment income | 132.0 | 127.9 | |
Accounts and notes receivable | 2,974.0 | 2,471.6 | |
Federal income tax recoverable: Current | 4.3 | 13.8 | |
Reinsurance balances and funds held | 388.8 | 423.1 | |
Reinsurance recoverable | 7,733.3 | 6,914.1 | |
Deferred policy acquisition costs | 588.5 | 531.3 | |
Other assets | 1,086.8 | 1,080.2 | |
Total assets | $ 29,255.7 | $ 27,843.1 | |
Liabilities and Equity: | |||
Loss and loss adjustment expense reserves | $ 14,356.4 | $ 13,727.7 | |
Unearned premiums | 4,018.5 | 3,505.4 | |
Other policyholders' benefits and funds held | 178.8 | 174.0 | |
Commissions, expenses, fees, and taxes | 499.6 | 547.5 | |
Reinsurance balances and funds held | 1,637.9 | 1,409.8 | |
Federal income tax: Deferred | 191.0 | 129.1 | |
Debt | 1,589.3 | 1,588.7 | |
Other liabilities | 580.2 | 1,141.6 | |
Total liabilities | 23,052.1 | 22,224.1 | |
Total shareholders' equity | 6,185.6 | 5,618.9 | |
Noncontrolling interests | 17.9 | — | |
Total equity | 6,203.5 | 5,618.9 | |
Total liabilities and equity | $ 29,255.7 | $ 27,843.1 |
Investments |
As of June 30, 2025, the consolidated investment portfolio reflected an allocation of approximately
Old Republic's investment portfolio is focused on ensuring solid funding of the insurance underwriting subsidiaries' obligations to policyholders and their beneficiaries, as well as the long-term stability of the subsidiaries' capital base. For these reasons, the investment portfolio has extremely limited exposure to high risk or illiquid asset classes such as limited partnerships, derivatives, hedge funds or private equity investments. In addition, the Company does not engage in hedging or securities lending transactions, nor does it invest in securities with values predicated on non-regulated financial instruments with unfunded counter-party risk attributes. Old Republic performs regular stress tests of the investment portfolio to gain reasonable assurance that periodic downdrafts in market prices do not undermine the Company's financial strength.
Shareholders' Equity Per Share |
Changes in shareholders' equity per share are reflected in the following table. These changes resulted mostly from net operating income, realized and unrealized investment gains (losses), and dividends to shareholders declared during the year.
Quarter | Year | |||||||
Ended | Ended | |||||||
June 30, | Six Months Ended June 30, | Dec. 31, | ||||||
2025 | 2025 | 2024 | 2024 | |||||
Beginning balance | $ 24.19 | $ 22.84 | $ 23.31 | $ 23.31 | ||||
Changes in shareholders' equity: | ||||||||
Net income excluding net investment gains (losses) | 0.85 | 1.68 | 1.45 | 3.09 | ||||
Net of tax realized investment gains | (0.01) | 0.11 | 0.38 | 0.27 | ||||
Net of tax unrealized investment gains (losses): | ||||||||
Fixed income securities | 0.29 | 0.75 | (0.22) | 0.12 | ||||
Equity securities | (0.01) | 0.05 | (0.30) | (0.06) | ||||
Total net of tax realized and unrealized investment gains | 0.27 | 0.91 | (0.14) | 0.33 | ||||
Cash dividends declared | (0.29) | (0.58) | (0.53) | (3.06) | ||||
Other - net | 0.12 | 0.29 | (0.50) | (0.83) | ||||
Net change | 0.95 | 2.30 | 0.28 | (0.47) | ||||
Ending balance | $ 25.14 | $ 25.14 | $ 23.59 | $ 22.84 | ||||
Change for the period | 3.9 % | 10.1 % | 1.2 % | (2.0) % | ||||
Change for the period, inclusive of cash dividends declared | 5.1 % | 12.6 % | 3.5 % | 11.1 % | ||||
Total capital returned to shareholders during the quarter was
Financial Supplement
A financial supplement to this news release is available on the Company's website: www.oldrepublic.com
About Old Republic
Old Republic is a leading specialty insurer that operates diverse property & casualty and title insurance companies. Founded in 1923 and a member of the Fortune 500, we are a leader in underwriting and risk management services for business partners across
Conference Call Information
Old Republic has scheduled a conference call at 3:00 p.m. ET (2:00 p.m. CT) today to discuss its second quarter 2025 performance and to review major operating trends and business developments. The call can be accessed live on Old Republic's website at www.oldrepublic.com or by dialing 1-888-510-2411, passcode 4060501. Interested parties may also listen to a replay of the call through July 31, 2025 by dialing 1-800-770-2030, passcode 4060501, or by accessing it on Old Republic's website.
At Old Republic: | At Financial Relations Board: |
Craig R. Smiddy, President and CEO | Analysts/Investors: Joe Calabrese/jcalabrese@mww.com |
Forward-Looking Statements
Some of the oral or written statements made in the Company's reports, press releases, and conference calls following earnings releases, can constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally include words such as "expect," "predict," "estimate," "will," "should," "anticipate," "believe," and similar expressions. Any such forward-looking statements involve assumptions, uncertainties, and risks that may affect the Company's future performance.
Historical data pertaining to the operating results, liquidity, and other performance indicators applicable to an insurance enterprise such as Old Republic are not necessarily indicative of results to be achieved in succeeding years. In addition to the factors cited below, the long-term nature of the insurance business, seasonal and annual patterns in premium production and incidence of claims, changes in yields obtained on invested assets, changes in government policies and free markets affecting inflation rates and general economic conditions, and changes in legal precedents or the application of law affecting the settlement of disputed and other claims can have a bearing on period-to-period comparisons and future operating results.
Old Republic's Specialty Insurance segment results can be affected by the level of market competition, which is typically a function of available capital and expected returns on such capital among competitors; general economic considerations, including the levels of investment yields, inflation rates, and the impacts of tariffs; periodic changes in claim frequency and severity patterns caused by natural disasters, weather conditions, accidents, illnesses, and work-related injuries; claims development and the impact on loss reserves; adequacy and availability of reinsurance; uncertainties in underwriting and pricing risks; and unanticipated external events. Old Republic's Title Insurance segment results can be affected by similar factors, and by changes in national and regional housing demand and values, the availability and cost of mortgage loans, and employment trends. Life and accident insurance earnings can be affected by the levels of employment and consumer spending, changes in mortality and health trends, and alterations in policy lapsation rates. At the parent holding company level, operating earnings or losses are generally reflective of the amount of debt outstanding and its cost, interest income, the levels of investments held, and period-to-period variations in the costs of administering the Company's widespread operations. In addition, results could be particularly affected by technology and security breaches or failures, including cybersecurity incidents.
A more detailed listing and discussion of the risks and other factors which affect the Company's risk-taking insurance business are included in Part I, Item 1A - Risk Factors, of the Company's 2024 Form 10-K, and the various risks, uncertainties, and other factors that are included from time to time in other Securities and Exchange Commission filings.
Any forward-looking statements or commentaries speak only as of their dates. Old Republic undertakes no obligation to publicly update or revise any and all such comments, whether as a result of new information, future events or otherwise, and accordingly they may not be unduly relied upon.
For Old Republic's latest news releases and other corporate documents:
Please visit us at www.oldrepublic.com | ||
Alternatively, please write or call: | ||
Investor Relations | ||
Old Republic International Corporation | ||
307 North Michigan Avenue, | ||
(312) 346-8100 | ||
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SOURCE Old Republic International Corporation
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