US Market News
2月前
AM Best Affirms Credit Ratings of Old Republic International Corporation’s SubsidiariesApril 29, 2026 11:34 AM
Business Wire
AM Best has affirmed the Financial Strength Rating (FSR) of A+ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICRs) of “aa-” (Superior) of the members of Old Republic Insurance Companies (Old Republic). Concurrently, AM Best has affirmed the FSR of A+ (Superior) and the Long-Term ICRs of “aa-” (Superior) of Old Republic National Title Insurance Company (Tampa, FL) and American Guaranty Title Insurance Company (Oklahoma City, OK) (collectively referred to as Old Republic Title Insurance Group [ORTIG]). In addition, AM Best has affirmed the FSR of A- (Excellent) and the Long-Term ICR of “a-” (Excellent) of Old Republic Life Insurance Company (ORL) (Chicago, IL). At the same time, AM Best has affirmed the FSR of A (Excellent) and the Long-Term ICR of “a+” (Excellent) of Old Republic Insurance Company of Canada (Old Republic Canada) (Hamilton, Ontario). The outlook of these Credit Ratings (ratings) is stable.
All companies are subsidiaries of Old Republic International Corporation (ORI) [NYSE: ORI]. (See below for a detailed listing of the companies and ratings for the members of Old Republic.)
The ratings of Old Republic, which is considered the lead rating unit in the ORI enterprise, reflect its balance sheet strength, which AM Best assesses as strongest, as well as its strong operating performance, favorable business profile and appropriate enterprise risk management (ERM).
Old Republic is the flagship group for the Old Republic Insurance enterprise and one of the top 50 property/casualty insurers in the United States. The group is made up of commercial lines insurance carriers that provide underwriting and risk management services for business partners across the North America economy. The group’s largest lines of business include commercial auto and workers’ compensation; however, it continues to expand product capabilities beyond the traditional focus within these lines. Old Republic benefits from its expertise within the alternative risk transfer market and specialty commercial segments, as well as historically strong earnings, expertise in its respective individual business specialties and well-recognized franchises. The organization continues to have very modest exposure to asbestos liabilities.
The ratings of ORTIG reflect its balance sheet strength, which AM Best assesses as strongest, as well as its adequate operating performance, neutral business profile and appropriate ERM. The ratings of ORTIG also reflect the implicit support the group receives from its position in the Old Republic enterprise and its strategic role within the organization.
The ratings of ORTIG also recognize its strong reserving practices and continued profitability. With a majority of ORTIG’s premiums and fees generated through independent agents, a significant portion of its expenses are variable. This enables ORTIG to manage down cycles better, as fixed costs generally are lower for that distribution channel. AM Best expects that ORTIG will continue to generate underwriting and operating results that are in line with its title insurance competitors. AM Best expects that ORTIG will remain a significant contributor to the overall profitability of the ORI enterprise, while maintaining the strongest level of risk-adjusted capitalization in the intermediate term, as measured by Best’s Capital Adequacy Ratio (BCAR). ORTIG continues to be integral to the overall organization, with common branding and talent synergies, as well as complementary ERM programs.
The ratings of ORL reflect its balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate ERM.
The ratings of ORL also reflect its risk-adjusted capitalization, which is assessed at the strongest level, as measured by BCAR. Invested asset holdings are of good credit quality, as the portfolio is designed to minimize credit default risk rather than maximizing yield. Earnings have been positive in recent years. Due to the small size of ORL’s reserves, any increase in claims or mortality could cause a material change to its earnings, but should not materially impact ORI. Premiums have declined over the past several years, as the closed-term block premiums run off, and the occupational accident premiums trend lower. The company’s business profile consists of a closed block of term life insurance and the actively marketed occupational accident line. Despite its modest size, ORL is important strategically to the Old Republic organization.
The ratings of Old Republic Canada reflect its balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate ERM. The ratings of Old Republic Canada also reflect its strategic importance within the Old Republic enterprise.
The ratings of Old Republic Canada recognize the synergies it gains as an affiliate of Great West Casualty Company, as well as its accident and sickness business. Partially offsetting these positive rating factors are the company’s limited product offering and challenging market environment in Canada.
The FSR of A+ (Superior) and the Long-Term ICRs of “aa-” (Superior) have been affirmed, with stable outlooks, for the following members of the Old Republic Insurance Companies:
BITCO General Insurance Corporation
BITCO National Insurance Company
Great West Casualty Company
Manufacturers Alliance Insurance Company
Old Republic General Insurance Corporation
Old Republic Insurance Company
Old Republic Surety Company
Old Republic Union Insurance Company
Pennsylvania Manufacturers Indemnity Company
Pennsylvania Manufacturers’ Association Insurance Company
This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.
Copyright © 2026 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260429861709/en/
Michael T. Venezia
Senior Financial Analyst
+1 908 882 2414
michael.venezia@ambest.com
Doniella Pliss
Director
+1 908 882 2245
doniella.pliss@ambest.com
Christopher Sharkey
Associate Director, Public Relations
+1 908 882 2310
christopher.sharkey@ambest.com
Al Slavin
Senior Public Relations Specialist
+1 908 882 2318
al.slavin@ambest.com
Original: AM Best Affirms Credit Ratings of Old Republic International Corporation’s Subsidiaries
US Market News
2月前
OLD REPUBLIC REPORTS RESULTS FOR THE FIRST QUARTER 2026April 23, 2026 7:00 AM
PR Newswire (US)
CHICAGO, April 23, 2026 /PRNewswire/ -- Old Republic International Corporation (NYSE: ORI) today reported the following results for the first quarter 2026:
Net income of $330.0 million, compared to $245.0 million last year.Net income excluding investment gains (net operating income) of $170.5 million, compared to $201.7 million last year.Net operating income per diluted share of $0.68, compared to $0.81 last year.Consolidated net premiums and fees earned of $1.97 billion, compared to nearly $1.85 billion last year.Net investment income of $178.0 million, compared to $170.7 million last year.Consolidated combined ratio of 96.6%, compared to 93.7% last year.Favorable loss reserve development of 1.5 points, compared to 2.6 points last year.Book value per share of $24.53, inclusive of dividends declared, up 2.6% since year-end 2025.Annualized operating return on equity of 11.5%.Total capital returned to shareholders of $237.5 million.Dollar amounts (other than per share amounts) are presented in millions, except as otherwise indicated. OVERALL RESULTS ATTRIBUTABLE TO SHAREHOLDERS
Quarters Ended March 31,
2026
2025
% ChangeNet income
$ 330.0
$ 245.0
Net of tax investment gains
159.4
43.2
Net income excluding investment gains
$ 170.5
$ 201.7
(15.4) %
Combined ratio
96.6 %
93.7 %
PER DILUTED SHARE ATTRIBUTABLE TO SHAREHOLDERS
Quarters Ended March 31,
2026
2025
% ChangeNet income
$ 1.32
$ 0.98
Net of tax investment gains
0.64
0.17
Net income excluding investment gains
$ 0.68
$ 0.81
(15.4) %
SHAREHOLDERS' EQUITY (BOOK VALUE)
Mar. 31,
Dec. 31,
2026
2025
% ChangeTotal
$ 5,911.9
$ 5,914.0
— %Per common share
$ 24.53
$ 24.21
1.3 %
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 Company's obligations. Although Generally Accepted Accounting Principles (GAAP) uses net income as the measure of total profitability, management uses net income excluding net investment 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 March 31,
SUMMARY INCOME STATEMENTS:2026
2025
% Change
Revenues:
Net premiums and fees earned$ 1,972.2
$ 1,841.0
7.1 %
Net investment income178.0
170.7
4.3
Other income47.3
47.2
0.2
Total operating revenues2,197.6
2,059.0
6.7
Net investment gains:
Realized from actual transactions and impairments85.3
37.4
Unrealized from changes in fair value of equity securities116.4
17.6
Total net investment gains201.8
55.0
Total revenues2,399.4
2,114.0
Operating expenses:
Loss and loss adjustment expenses840.2
777.7
8.0
Underwriting, acquisition, and other expenses1,128.0
1,010.7
11.6
Interest and other charges17.7
17.8
(0.5)
Total expenses1,986.0
1,806.3
10.0 %
Pretax income413.4
307.7
Income taxes83.8
61.6
Total net income329.5
246.1
Net income (loss) attributable to noncontrolling interests(0.5)
1.1
Net income attributable to shareholders$ 330.0
$ 245.0
COMMON STOCK STATISTICS:
Components of net income per share:
Basic net income excluding investment gains$ 0.70
$ 0.83
(15.1) %
Net investment gains:
Realized investment gains0.28
0.12
Unrealized from changes in fair value of equity securities0.38
0.06
Basic net income$ 1.36
$ 1.01
Diluted net income excluding investment gains$ 0.68
$ 0.81
(15.4) %
Net investment gains:
Realized investment gains0.27
0.12
Unrealized from changes in fair value of equity securities0.37
0.05
Diluted net income$ 1.32
$ 0.98
Dividends declared on common stock$ 0.315
$ 0.290
8.6 %
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 operating companies, as well as the sound investment of their capital and underwriting cash flows.Sources of Consolidated Income
Quarters Ended March 31,
2026
2025
% ChangeNet premiums and fees earned:
Specialty Insurance$ 1,291.8
$ 1,233.6
4.7 %Title Insurance677.8
605.1
12.0Corporate & Other2.4
2.2
7.6Consolidated$ 1,972.2
$ 1,841.0
7.1 %
Underwriting income (loss): (a)
Specialty Insurance$ 67.2
$ 126.1
(46.7) %Title Insurance(0.5)
(12.2)
95.2Corporate & Other(15.4)
(14.0)
(9.4)Consolidated$ 51.2
$ 99.8
(48.7) %
Net investment income:
Specialty Insurance$ 158.1
$ 150.0
5.4 %Title Insurance17.4
16.7
4.4Corporate & Other2.4
3.9
(38.1)Consolidated$ 178.0
$ 170.7
4.3 %
Interest and other charges:
Specialty Insurance$ 16.2
$ 16.0
Title Insurance0.1
0.1
Corporate & Other (b)1.3
1.6
Consolidated$ 17.7
$ 17.8
(0.5) %
Pretax income (loss) excluding investment gains:
Specialty Insurance$ 209.0
$ 260.1
(19.6) %Title Insurance16.7
4.3
284.5Corporate & Other(14.3)
(11.8)
(21.1)Consolidated 211.5
252.7
(16.3) %Income taxes41.4
49.8
Net income excluding investment gains 170.0
202.8
(16.2) %Consolidated pretax investment gains:Realized from actual transactions and impairments85.3
37.4
Unrealized from changes in fair value of equity securities116.4
17.6
Total201.8
55.0
Income taxes42.4
11.7
Net of tax investment gains159.4
43.2
Total net income329.5
246.1
Net income (loss) attributable to noncontrolling interests(0.5)
1.1
Net income attributable to shareholders$ 330.0
$ 245.0
(a) Includes related services.
(b) Includes consolidation/elimination entries. Specialty Insurance Segment Operating Results
Quarters Ended March 31,
2026
2025
% ChangeRevenues:
Net premiums written
$ 1,315.3
$ 1,272.0
3.4 %Net premiums earned
1,291.8
1,233.6
4.7Other income
47.1
47.1
0.2Expenses:
Loss and loss adjustment expenses
821.9
761.0
8.0Underwriting, acquisition, and other expenses
449.9
393.5
14.3Segment underwriting income
67.2
126.1
(46.7)Add: Net investment income
158.1
150.0
5.4Less: Interest and other charges
16.2
16.0
1.7Segment pretax operating income
$ 209.0
$ 260.1
(19.6) %
Loss ratio:
Current year
65.2 %
65.0 %
Prior years
(1.6)
(3.3)
Total
63.6
61.7
Expense ratio
31.2
28.1
Combined ratio
94.8 %
89.8 %
Specialty Insurance net premiums earned increased 4.7%. Growth was driven by a combination of premium rate increases and new business production, including an increasing contribution from new operating companies, partially offset by a decline in renewal retention ratios. Retention ratios were affected by the continued prioritization of rate, in particular within commercial auto and general liability lines where significant rate increases were achieved. Premium growth was most pronounced within commercial auto, property, accident & health, and general liability coverages while the most notable decline came from Canadian travel accident and trucking.The net investment income increase was driven by a higher invested asset base, along with higher investment yields earned.The Specialty Insurance loss ratio is higher due to lower levels of favorable prior year loss reserve development while the current year loss ratio remained consistent. Favorable prior year development came predominately from commercial auto, workers' compensation, and property, partially offset by modest unfavorable development in general liability. The expense ratio is elevated due to continued investments in start-up operating companies which are not at scale, information technology modernization, data analytics, and artificial intelligence, including the additional personnel costs to manage all of these key initiatives. Several of the information technology modernization efforts are entering a phase in which costs are being amortized while the systems being replaced are not yet decommissioned.Together, these factors produced a profitable combined ratio and strong pretax operating income. For Specialty Insurance, combined ratios between 90% and 95% are targeted over a full underwriting cycle, recognizing that quarterly and annual ratios and trends may deviate from this range, particularly with long-tailed lines of coverage.Old Republic's previously announced proposed acquisition of Everett Cash Mutual Insurance Co. (ECM) and affiliated companies following its conversion to a stock company in a sponsored demutualization transaction has received regulatory approval, and is expected to close early in the third quarter 2026 upon receipt of policyholder approval and completion of all customary and regulatory closing conditions. Upon closing, ECM will be reported within the Specialty Insurance segment operating results.Title Insurance Segment Operating Results
Quarters Ended March 31,
2026
2025
% ChangeRevenues:
Net premiums earned$ 618.9
$ 546.9
13.2 %Title, escrow, and other fees58.9
58.1
1.3Net premiums and fees earned677.8
605.1
12.0Other income0.1
0.1
N/MExpenses:
Loss and loss adjustment expenses17.4
16.0
8.7Underwriting, acquisition, and other expenses661.1
601.4
9.9Segment underwriting loss(0.5)
(12.2)
95.2Add: Net investment income17.4
16.7
4.4Less: Interest and other charges0.1
0.1
N/MSegment pretax operating income$ 16.7
$ 4.3
284.5 %
Loss ratio:
Current year3.7 %
3.5 %
Prior years(1.1)
(0.8)
Total2.6
2.7
Expense ratio97.5
99.4
Combined ratio100.1 %
102.1 %
Title Insurance net premiums and fees earned increased 12.0% for the quarter. Both agency and directly produced premiums experienced solid growth and strong commercial business production. Commercial premiums represented 27% of net premiums earned compared to 24% in the first quarter of last year. Title, escrow, and other fees were up slightly, as the decrease in fees from the sale of certain technology platforms in the first quarter 2025 was offset by growth in escrow and closing service fees.Net investment income increased primarily due to higher investment yields earned on a slightly higher invested asset base.The Title Insurance loss ratio remained consistent with last year, reflecting a higher level of favorable prior year loss reserve development offset by slightly higher current year losses. The expense ratio continues to benefit from expense management and scale, partially offset by a higher amount of agent commissions primarily due to greater amounts of agency business compared to the direct operation.Together, these factors produced higher pretax operating income. For Title Insurance, combined ratios between 90% to 95% are targeted over a full underwriting cycle, recognizing that quarterly and annual ratios and trends may deviate from this range. Although Title Insurance has been navigating a difficult real estate environment over the last few years resulting in ratios in excess of this range, they continue to strive to come into range in the near term.Corporate & Other Operating Results
Quarters Ended March 31,
2026
2025
% ChangeNet premiums earned
$ 2.4
$ 2.2
7.6 %Net investment income (a)
2.4
3.9
(38.1)Operating revenues
4.8
6.2
(21.5)Operating expenses
19.1
18.0
6.4Corporate & Other pretax operating loss
$ (14.3)
$ (11.8)
(21.1) %(a) Net of elimination entries.Corporate & Other includes a small life and accident insurance business, the parent holding company, and several internal corporate services subsidiaries. Net investment income was impacted by a lower invested asset base due to the return of capital to shareholders, including the January 2026 special dividend payment.Consolidated Balance Sheets
March 31,
December 31,
2026
2025Assets:
Fixed income securities (at fair value)$ 12,802.6
$ 12,709.8Equity securities (at fair value)2,527.7
2,487.7Short-term investments (at fair value which approximates cost)1,044.9
1,613.6Other investments18.2
27.7Cash202.1
263.2Accrued investment income129.9
141.1Accounts and notes receivable2,783.3
2,782.2Reinsurance balances and funds held403.0
404.5Reinsurance recoverable7,942.8
7,740.2Deferred policy acquisition costs659.1
636.2Other assets1,081.9
1,055.9Total assets$ 29,596.0
$ 29,862.7
Liabilities and Equity:
Loss and loss adjustment expense reserves$ 14,954.8
$ 14,775.7Unearned premiums4,099.5
3,982.5Other policyholders' benefits and funds held176.6
177.8Commissions, expenses, fees, and taxes553.2
601.8Reinsurance balances and funds held1,440.8
1,428.0Federal income tax: Deferred210.6
219.3Debt1,590.2
1,589.9Other liabilities644.6
1,158.7Total liabilities23,670.5
23,934.2Total shareholders' equity5,911.9
5,914.0Noncontrolling interests13.4
14.4Total equity5,925.4
5,928.4Total liabilities and equity$ 29,596.0
$ 29,862.7 InvestmentsAs of March 31, 2026, the consolidated investment portfolio reflected an allocation of approximately 85% to fixed income securities (bonds and notes) and short-term investments, and 15% to equity securities (common and preferred stocks). The investment management process remains focused on retaining quality investments that produce consistent streams of investment income, while monitoring concentration limits among the operating companies. The fixed income portfolio continues to be the anchor for the operating companies' obligations. The maturities of the fixed income securities are generally matched to the expected liabilities for claim payment obligations to policyholders and their beneficiaries. The equity portfolio consists of high-quality common stocks of U.S. companies with long-term records of reasonable earnings growth and steadily increasing dividends.Old Republic's investment portfolio is focused on ensuring solid funding of the operating companies' 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 ShareChanges 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.
Quarters Ended Mar. 31,
2026
2025
Beginning balance$ 24.21
$ 22.84
Changes in shareholders' equity:
Net income excluding net investment gains0.70
0.83
Net of tax realized investment gains0.28
0.12
Net of tax unrealized investment gains (losses):
Fixed income securities(0.47)
0.46
Equity securities0.38
0.06
Total net of tax realized and unrealized investment gains0.19
0.64
Dividends declared(0.315)
(0.290)
Other – net(0.26)
0.17
Net change0.32
1.35
Ending balance$ 24.53
$ 24.19
Change for the period1.3 %
5.9 %
Change for the period, inclusive of dividends declared2.6 %
7.2 %
Total capital returned to shareholders during the quarter was $237.5, comprised of $76.7 in dividends and $160.7 in share repurchases.Financial SupplementA financial supplement to this news release is available on the Company's website: www.oldrepublic.comConference Call InformationOld Republic has scheduled a conference call at 3:00 p.m. ET (2:00 p.m. CT) today to discuss its first quarter 2026 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 1-800-715-9871, passcode 8649152. Interested parties may also listen to a replay of the call through April 30, 2026 by dialing 1-800-770-2030, passcode 8649152, or by accessing it on Old Republic's website.About Old RepublicOld 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 the United States and Canada. Our specialized operating companies are experts in their fields, enabling us to provide tailored solutions that set us apart. For more information, please visit www.oldrepublic.com.Forward-Looking StatementsSome 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 2025 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.
At Old Republic:At Financial Relations Board:
Craig R. Smiddy, President and Chief Executive OfficerAnalysts/Investors: Joe Calabrese/jcalabrese@mww.com
View original content:https://www.prnewswire.com/news-releases/old-republic-reports-results-for-the-first-quarter-2026-302751056.htmlSOURCE Old Republic International Corporation
Original: OLD REPUBLIC REPORTS RESULTS FOR THE FIRST QUARTER 2026
FUNMAN
7年前
Old Republic International Remains The Conservative Choice For Income
Oct. 30, 2019 12:26 PM ET
To read the article with all of the charts and graphs, click on this link:
https://seekingalpha.com/article/4300386-old-republic-international-remains-conservative-choice-income
Summary
*There has been a number of senior appointments made over the past year at Old Republic International.
* The fundamentally conservative nature of this stock remains unaffected, however.
* It is undervalued at this time.
Old Republic International (ORI) had some changes made to its senior personnel, but what has not changed is that this insurance stalwart remains a steady and dependable income investment. Whether it is a buy or not at present will be addressed below.
In terms of new appointments, there has been a slew of news on that front. On 05/09/2019, Old Republic announced that Craig R. Smiddy, at that time President and COO of Old Republic International, would become President and CEO with effect from 10/01/2019.
The big shake-up was announced on 08/21/2019 when Stephen J. Oberst was promoted from President and CEO of the Risk Management Underwriting division to Executive Vice President, Terri E. Minik was named as Oberst's successor as President of Risk Management Underwriting while retaining her position as COO of that division.
Both Oberst and Minik will also serve in the CEO's senior policy-making office and will be joined by the company's Senior Vice-President and Treasurer W. Todd Gray in that department. All three assumed their roles with effect from 10/01/2019.
The final major appointment was announced on 09/23/2019 when it was reported that Aaron Jacoby would assume the role of Senior Vice-President of the Corporate Development and Finance department and would do so with effect from 10/10/2019.
Now, five appointments within one calendar year would at first glance suggest a fundamental shake-up in how Old Republic International operates is forthcoming. This was squashed right away by the firm's Chairman and CEO Al Zucaro, who stated on 09/23/2019 (when the appointments of Oberst, Minik, and Gray were announced) that the reasoning behind these appointments was the following:
"...they represent a continuing fulfillment of the Company's executive succession plans. They augur well for the continuity of long-established governance and operating practices, and for an orderly transition of executive responsibilities."
In short, the appointments were made to ensure that Old Republic International stayed on the same steady, conservative path that this insurance underwriter has charted hitherto, and it's foolish to argue against that this is the correct choice when confronted with the revenue and net income figures reported over the past five years...
Conservatism has been the hallmark of Old Republic International's success, and this approach extends to its balance sheet. With a net worth of $5.79 billion against long-term debt of $973.7 million, it is not fanciful to state that Old Republic International will be able to continue rewarding shareholders with consecutively rising dividends as they have for the last 37 years - a record that makes it a de-facto Dividend Aristocrat. The payout ratio of 30.20% makes that more likely still.
The likelihood stems from the fact that Old Republic International operates in the always-needed insurance sector. Just as people need food and drink, so too do they need insurance. Now, insurance is not a sector that has high barriers to keep competitors out, so to survive and thrive, you need to be long-established and have an institutionally conservative business model that can withstand economic downturns. Old Republic International has been in operation for 130 years, is one of the fifty largest publicly-traded insurance providers in the U.S., holds investments worth $14.18 billion, and was able to keep paying consecutively rising dividends during the Great Recession of the late-2000s. True, growth going forward will not be spectacular - projected EPS growth over the next five years is estimated to be 10.00% - but income is practically guaranteed.
What is not guaranteed, however, is whether Old Republic International is worth buying now. Currently, the stock trades in the low-$20 range with a price-to-earnings ratio of 9.12 and a dividend yield of 3.51%. The five-year average P/E is 12.02 and the five-year average dividend yield is 3.98%. These figures do not make clear at first sight what fair value is for Old Republic International.
First, if we divide the current P/E by the market's historical average of 15, we get a valuation ratio of 0.61 (9.12 / 15 = 0.61). Dividing the current share price of $22.40 by 0.61 gives us a fair value of $36.72, which suggests that Old Republic International is very undervalued at present. Second, if we divide the current P/E by the five-year average P/E (9.12 / 12.02), we get a valuation ratio of 0.76, and dividing the current share price by this ratio gives us a fair value of $29.47, which still suggests the stock is undervalued. Finally, dividing the five-year average dividend yield by the current dividend yield (3.98 / 3.51) provides a valuation ratio of 1.13, and dividing the current share price by this gives a fair value of $19.82.
Now, if we average these three figures together [(36.72 + 29.47 + 19.82) / 3], we get a fair value figure of $28.67 for Old Republic International, which suggests that the stock is undervalued by 28% at this time. So, in a market where bargains are few and far between, we have a solid, conservatively-run insurance underwriter with a strong balance sheet, decent revenue, and net income figures, and a stellar dividend track record now trading 28% below fair value. Many will dispute this conclusion as it has traded more cheaply in recent years, but I contend that Old Republic International is a buy at this time.
Disclosure: I/we have no positions in any stocks mentioned, but may initiate a long position in ORI over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Additional disclosure: DISCLAIMER: The author is not a financial professional and accepts no responsibility for any investment decisions a reader makes. This article is presented for information purposes only. Furthermore, the figures presented are the product of the author's own research and may differ from those of other analysts. Always do your own due diligence when researching prospective investments.
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