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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 driven by strong Q3 earnings, beating estimates with $1.11 per share, compared to $0.73 per share expected. The company's net operating income rose to $196.7 million, driven by conservative underwriting and favorable reserve releases. A new environmental insurance company was formed, and a definitive agreement was made to acquire Everett Cash Mutual Insurance Co. Additionally, the company declared a regular quarterly cash dividend of 29 cents per share, and Aviva PLC acquired a new stake in the company.

1.c. Company Highlights

2. Old Republic's Q3 2025 Earnings: Solid Growth and Profitability

Old Republic's financial performance in Q3 2025 was robust, with consolidated pretax operating income reaching $248.2 million and a consolidated combined ratio of 95.3%, slightly higher than the 95% reported in Q3 2024. The company's Specialty Insurance segment grew net premiums earned by 8.1% year-over-year, with pretax operating income increasing to $207 million from $197.3 million in Q3 2024. The actual EPS came out at $1.11, beating estimates of $0.73. Revenue growth is expected to continue, with analysts estimating a 5.7% increase for the next year.

Publication Date: Oct -27

📋 Highlights
  • Consolidated Pretax Operating Income:: Achieved $248.2 million in Q3 2025, maintaining a combined ratio of 95.3% (vs. 95% in Q3 2024).
  • Specialty Insurance Growth:: Net premiums earned rose 8.1% YoY; pretax operating income reached $207 million (up from $197.3 million in Q3 2024) with a 94.8% combined ratio.
  • Title Insurance Revenue:: Generated $767 million in Q3, reflecting an 8% YoY increase, driven by strong commercial activity and improved loss ratios (2.7% vs. 2.8% in Q3 2024).
  • Everett Cash Mutual Acquisition:: Added 18th Specialty Insurance operating company, expected to be accretive to book value per share but not to statutory capital.
  • Favorable Prior Year Reserve Development:: Workers’ comp contributed majority of favorable development in Specialty Insurance; Commercial auto, general liability, and property also showed improvements.

Segment Performance

The Specialty Insurance segment demonstrated significant growth, driven by favorable prior-year loss reserve development, particularly in workers' compensation. The combined ratio for this segment was 94.8%, slightly higher than the 94% in Q3 2024. The Title Insurance segment also reported an 8% increase in premium and fee revenue, driven by strong commercial sector activity and a modest uptick in refinance activity. The overall loss ratio for Title Insurance decreased to 2.7% from 2.8% in Q3 2024.

Acquisition and Capital Management

Old Republic announced the acquisition of Everett Cash Mutual through a sponsored demutualization, which is expected to be accretive to book value per share. The company's capital management strategy is focused on optimizing returns, as evident from Craig Smiddy's comments on having a "nice problem" of retained earnings building faster than capital returns to shareholders. The P/B Ratio of 1.6 suggests that the stock is reasonably valued relative to its book value.

Valuation and Dividend Yield

With a Dividend Yield of 7.74%, Old Republic offers an attractive return to income-focused investors. The P/E Ratio of 11.85 indicates that the stock is not overly expensive relative to its earnings. The ROE of 13.8% suggests that the company is generating strong returns on equity. Overall, Old Republic's solid financial performance, growth prospects, and reasonable valuation make it an attractive investment opportunity in the insurance sector.

Outlook

Old Republic expects solid growth and profitability to continue in its Specialty Insurance segment, driven by its specialty strategy and operational excellence initiatives. The Title Insurance segment is also expected to remain a strong contributor, driven by innovation, technology, and customer experience. With a strong balance sheet and a reasonable valuation, Old Republic is well-positioned for future growth.

3. NewsRoom

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OLD REPUBLIC DECLARES FOURTH QUARTER REGULAR CASH DIVIDEND OF 29 CENTS PER SHARE

Nov -25

Source: prnewswire.com

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Third Avenue Management Exits Deutsche Bank AG, Impacting Portfolio by -6.22%

Nov -14

Source: gurufocus.com

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13,308 Shares in Old Republic International Corporation $ORI Acquired by Aviva PLC

Nov -14

Source: defenseworld.net

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Stephens Inc. AR Has $463,000 Stock Holdings in Old Republic International Corporation $ORI

Oct -26

Source: defenseworld.net

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Old Republic International Corporation (ORI) Q3 2025 Earnings Call Transcript

Oct -23

Source: seekingalpha.com

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Old Republic: Steady Results At A Fair Valuation

Oct -23

Source: seekingalpha.com

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Old Republic (ORI) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates

Oct -23

Source: zacks.com

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Old Republic International (ORI) Surpasses Q3 Earnings and Revenue Estimates

Oct -23

Source: zacks.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

Strength

Weaknesses

Opportunities

Threats

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

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Old Republic International

A-Score: 7.6/10

Value: 6.5

Growth: 5.1

Quality: 6.1

Yield: 10.0

Momentum: 8.0

Volatility: 9.7

1-Year Total Return ->

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Stock-Card
Main Street Capital

A-Score: 7.5/10

Value: 4.8

Growth: 6.0

Quality: 7.6

Yield: 9.0

Momentum: 8.0

Volatility: 9.3

1-Year Total Return ->

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Enact Holdings

A-Score: 7.2/10

Value: 7.0

Growth: 4.6

Quality: 8.8

Yield: 7.0

Momentum: 6.0

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
Principal Financial Group

A-Score: 6.5/10

Value: 6.3

Growth: 5.4

Quality: 6.7

Yield: 8.0

Momentum: 4.0

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
Equitable Holdings

A-Score: 6.1/10

Value: 4.8

Growth: 7.7

Quality: 6.0

Yield: 4.0

Momentum: 7.0

Volatility: 7.3

1-Year Total Return ->

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Corebridge Financial

A-Score: 5.6/10

Value: 6.0

Growth: 3.3

Quality: 3.2

Yield: 8.0

Momentum: 6.0

Volatility: 7.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

42.95$

Current Price

42.95$

Potential

-0.00%

Expected Cash-Flows