Old Republic International Corporation (ORI) | Investment Case

1. Company Snapshot

1.a. Company Description

Old Republic International Corporation, through its subsidiaries, engages in the insurance underwriting and related services business primarily in the United States and Canada.The company operates through three segments: General Insurance, Title Insurance, and the Republic Financial Indemnity Group Run-off Business.The General Insurance segment offers automobile extended warranty, aviation, commercial automobile, commercial multi-peril, commercial property, general liability, home warranty, inland marine, travel accident, and workers' compensation insurance products; and financial indemnity products for specialty coverages, including errors and omissions, fidelity, guaranteed asset protection, and surety.

This segment provides its insurance products to businesses, government, and other institutions in transportation, commercial construction, healthcare, education, retail and wholesale trade, forest products, energy, general manufacturing, and financial services industries.The Title Insurance segment offers lenders' and owners' title insurance policies to real estate purchasers and investors based upon searches of the public records.This segment also provides escrow closing and construction disbursement services; and real estate information products, national default management services, and various other services pertaining to real estate transfers and loan transactions.

The Republic Financial Indemnity Group Run-off Business segment offers private mortgage insurance coverage that protects mortgage lenders and investors from default related losses on residential mortgage loans made primarily to homebuyers.The company was founded in 1923 and is based in Chicago, Illinois.

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1.b. Last Insights on ORI

Old Republic International Corporation's recent performance was positively driven by increased institutional ownership, with Inscription Capital LLC boosting its holdings by 204.7%. The company reported net income of $206.3 million for Q4 2025, up from $105.1 million last year. A special dividend of $2.50 per share was declared, returning approximately $620 million to shareholders. Additionally, the title business posted higher quarterly operating income on improved revenue and expense management. Institutional ownership stands at 70.9%.

1.c. Company Highlights

Last Price	41.22
Change Percentage	-0.72%
Open	41.69
Previous Close	41.52
Market Cap ( Millions)	10200
Volume	3214472
Year High	46.76
Year Low	34.43
M A 50	42.8
M A 200	40.44

FCF Yield	12.66%
Dividend Yield	8.88%
ROE	15.32%
Debt / Equity	26.88%
Net Debt / EBIDTA	107.29%
Price To Book	1.7
Price Earnings Ratio	10.73
Price To FCF	7.9
Price To sales	1.12
EV / EBITDA	9.32

2. Old Republic's 2025 Earnings: A Resilient Performance Amidst Challenges

Old Republic International Corporation reported a consolidated pretax operating income of $236 million for the fourth quarter of 2025, a decline from $285 million in the same quarter last year. The company's net operating income for the quarter was $185 million, or $0.83 per share, slightly missing analyst estimates of $0.89 per share. For the full year, the company produced $1 billion of consolidated pretax operating income and a consolidated combined ratio of 94.7%. The operating return on beginning equity was 14.1%, and growth in book value per share, including dividends, was 22%. Specialty insurance grew net premiums earned by 10.9% for the full year, while Title group premium and fees grew by 9.1%. Net investment income increased 7.9% in the quarter, primarily due to higher yields on the bond portfolio and a larger investment base.

Publication Date: Jan -23

                                    📋 Highlights
                                    Q4 Pretax Income Decline:
                                                Pretax operating income fell to $236M (-17.1%) with a combined ratio of 96% (up from 92.7%).
Full-Year Performance:
                                                Generated $1B pretax operating income, 14.1% operating ROE, and 22% book value per share growth.
Specialty Insurance Growth:
                                                Surpassed $5B in net premiums earned (up 10.9% YoY) with $900M pretax income and 93.2% annual combined ratio.
Capital Returns:
                                                Returned $756M to shareholders via dividends ($700M) and buybacks ($56M), totaling >$1B for the year.
Title Insurance Momentum:
                                                Premiums rose 12% to $789M in Q4, driven by commercial sector strength despite residential market softness.

                                

Segment Performance

The Specialty insurance segment produced $178 million of pretax operating income in the fourth quarter and $900 million for the full year, with a combined ratio of 97.3% and 93.2%, respectively. The segment's net premiums written were up 6.1% in the quarter, driven by strong rate increases on commercial auto and general liability. Title reported premium and fee revenue of $789 million for the quarter, up 12% from the fourth quarter of last year, driven by strong activity in the commercial sector.

Outlook and Guidance

The company expects net investment income growth to slow in 2026 due to portfolio actions taken over the last few years and the current interest rate environment. For 2026, the company aims to produce a combined ratio around the same level as 2025, with a focus on pricing discipline and underwriting discipline. Analysts estimate next year's revenue growth at 6.5%. The company's guidance is based on current observations, and they make conservative projections.

Valuation and Dividend Yield

With a Price-to-Book Ratio of 1.48, the stock appears reasonably valued. The Dividend Yield is 9.36%, indicating an attractive return for income investors. Given the company's goal of maintaining a stable loss ratio and its diversified portfolio, the current valuation multiples seem to reflect a balanced view of the company's prospects. The company's plan to recommend a regular dividend increase to the board and its $850 million remaining on its share repurchase program also underscore its commitment to returning capital to shareholders.

3. NewsRoom

Cherokee Insurance Co Cuts Stake in Old Republic International Corporation $ORI

Feb -15

Source: defenseworld.net

Heartland Opportunistic Value Equity Strategy Q4 2025 Portfolio Activity

Feb -13

Source: seekingalpha.com

ProShare Advisors LLC Buys 107,253 Shares of Old Republic International Corporation $ORI

Feb -10

Source: defenseworld.net

Contrasting Old Republic International (NYSE:ORI) & Tian Ruixiang (NASDAQ:TIRX)

Feb -08

Source: defenseworld.net

Old Republic International Q4 Earnings Call Highlights

Jan -24

Source: defenseworld.net

Why Old Republic Stock Dived by 9% Today

Jan -22

Source: fool.com

Old Republic International Corporation (ORI) Q4 2025 Earnings Call Transcript

Jan -22

Source: seekingalpha.com

Old Republic: Q4 Underwriting Results Add To Margin Fears

Jan -22

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.56%)

6. Segments

General Insurance

Expected Growth: 4.5%

Old Republic International Corporation's General Insurance segment growth of 4.5% is driven by increasing demand for commercial auto insurance, expansion into new markets, and strategic acquisitions. Additionally, favorable underwriting results, improved pricing, and a strong economy contribute to the segment's growth.

Title Insurance

Expected Growth: 4.8%

Old Republic International Corporation's Title Insurance segment growth of 4.8% is driven by increasing demand for title insurance products, expansion into new markets, and strategic acquisitions. Additionally, the company's strong brand reputation, efficient operations, and favorable regulatory environment contribute to its growth. Furthermore, the rising number of real estate transactions and refinancing activities also boost demand for title insurance services.

Reconciling Items

Expected Growth: 3.2%

Old Republic International Corporation's 3.2% growth is driven by increasing demand for title insurance and mortgage guaranty products, expansion into new markets, and strategic acquisitions. Additionally, the company's focus on cost savings initiatives and operational efficiencies have contributed to its growth. Furthermore, a favorable interest rate environment and a strong housing market have also supported the company's growth.

Corporate & Other

Expected Growth: 3.5%

Old Republic International Corporation's Corporate & Other segment growth of 3.5% is driven by increasing investment income, favorable tax rates, and effective cost management. Additionally, the company's strategic investments in technology and operational efficiency initiatives have contributed to the segment's growth.

Republic Financial Indemnity Group Run-off

Expected Growth: 2.8%

Republic Financial Indemnity Group's 2.8% growth is driven by a disciplined underwriting approach, favorable reserve development, and a steady stream of reinsurance recoveries. Additionally, the run-off strategy has allowed the company to focus on optimizing its claims management and settlement processes, resulting in improved profitability and cash flow.

7. Detailed Products

Title Insurance

Old Republic International Corporation provides title insurance policies that protect buyers and lenders from losses due to defects in title, ensuring a secure and efficient real estate transaction process.

Home Warranty

Old Republic Home Warranty provides protection against unexpected home repairs and replacements, offering peace of mind for homeowners and real estate professionals.

Real Estate Transactional Services

Old Republic International Corporation offers a range of real estate transactional services, including escrow and closing services, to facilitate smooth and efficient real estate transactions.

Relocation Services

Old Republic International Corporation provides relocation services, including relocation management and consulting, to support corporate clients and their employees during relocation.

Underwriting Services

Old Republic International Corporation offers underwriting services, including title underwriting and closing services, to support real estate transactions.

8. Old Republic International Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Old Republic International Corporation operates in the insurance industry, where substitutes are limited. However, the company faces competition from other insurance providers, which can be considered as substitutes.

Bargaining Power Of Customers

Old Republic International Corporation has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's products are often customized, making it difficult for customers to switch to competitors.

Bargaining Power Of Suppliers

Old Republic International Corporation has a diversified supply chain, which reduces the bargaining power of individual suppliers. The company also has a strong financial position, which gives it negotiating power over its suppliers.

Threat Of New Entrants

The insurance industry has high barriers to entry, including regulatory requirements and capital requirements. This makes it difficult for new entrants to enter the market, reducing the threat of new entrants to Old Republic International Corporation.

Intensity Of Rivalry

The insurance industry is highly competitive, with many established players competing for market share. Old Republic International Corporation faces intense competition from other insurance providers, which can lead to pricing pressure and reduced market share.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	23.69%
Debt Cost	5.53%
Equity Weight	76.31%
Equity Cost	8.20%
WACC	7.57%
Leverage	31.05%

11. Quality Control: Old Republic International Corporation passed 4 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Old Republic International

A-Score: 7.7/10

Value: 6.7

Growth: 4.9

Quality: 7.0

Yield: 10.0

Momentum: 8.0

Volatility: 9.7

1-Year Total Return ->

Enact Holdings

A-Score: 7.5/10

Value: 7.1

Growth: 4.6

Quality: 8.8

Yield: 7.0

Momentum: 7.5

Volatility: 10.0

1-Year Total Return ->

Main Street Capital

A-Score: 7.1/10

Value: 4.6

Growth: 5.9

Quality: 6.7

Yield: 9.0

Momentum: 7.0

Volatility: 9.3

1-Year Total Return ->

Principal Financial Group

A-Score: 7.0/10

Value: 7.2

Growth: 5.4

Quality: 6.7

Yield: 8.0

Momentum: 6.0

Volatility: 8.7

1-Year Total Return ->

Corebridge Financial

A-Score: 6.1/10

Value: 7.5

Growth: 4.6

Quality: 5.8

Yield: 8.0

Momentum: 4.0

Volatility: 6.7

1-Year Total Return ->

Equitable Holdings

A-Score: 5.5/10

Value: 5.4

Growth: 7.8

Quality: 3.6

Yield: 4.0

Momentum: 5.0

Volatility: 7.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-5.82%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

7.57%

Old Republic International Corporation - US6802231042

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on ORI

1.c. Company Highlights

Medium Volatility

Average Yield

Stable Momentum

Earnings Beats

Revenues Beats

Average Growth

Less Volatile

Revenues Miss

Average Quality

Cheaper

Fairly Valued

Higher Yield

2. Old Republic's 2025 Earnings: A Resilient Performance Amidst Challenges

Segment Performance

Outlook and Guidance

Valuation and Dividend Yield

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.56%)

6. Segments

General Insurance

Expected Growth: 4.5%

Title Insurance

Expected Growth: 4.8%

Reconciling Items

Expected Growth: 3.2%

Corporate & Other

Expected Growth: 3.5%

Republic Financial Indemnity Group Run-off

Expected Growth: 2.8%

7. Detailed Products

Title Insurance

Home Warranty

Real Estate Transactional Services

Relocation Services

Underwriting Services

8. Old Republic International Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Old Republic International Corporation passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

41.22$

Current Price

41.22$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA