Old Republic International Corporation (ORI) Bundle
A Brief History of Old Republic International Corporation
Old Republic International Corporation (ORI) has established itself as a prominent player in the insurance sector, primarily operating through its two main segments: General Insurance and Title Insurance. As of 2024, the company has demonstrated significant growth and resilience in its financial performance.
Financial Performance Overview
For the third quarter of 2024, Old Republic reported consolidated net premiums and fees earned of $1,929.2 million, reflecting a 9.6% increase compared to $1,760.1 million in the same period of 2023. Over the first nine months of 2024, net premiums and fees reached $5,369.3 million, an 8.2% increase from $4,964.1 million in 2023.
| Financial Metric | Q3 2024 | Q3 2023 | % Change | 9M 2024 | 9M 2023 | % Change |
|---|---|---|---|---|---|---|
| Net Premiums and Fees Earned | $1,929.2 million | $1,760.1 million | 9.6% | $5,369.3 million | $4,964.1 million | 8.2% |
Segment Performance
The General Insurance segment generated $1,218.5 million in net premiums earned for Q3 2024, a 13.9% increase from $1,069.6 million in Q3 2023. Over the first nine months, it achieved $3,439.8 million, marking a 13.6% rise from $3,027.7 million in the prior year.
Conversely, the Title Insurance segment reported net premiums and fees earned of $708.5 million for Q3 2024, up 3.5% from $684.4 million in Q3 2023, while remaining flat at $1,917.4 million for the nine months ending September 30, 2024.
| Segment | Q3 2024 | Q3 2023 | % Change | 9M 2024 | 9M 2023 | % Change |
|---|---|---|---|---|---|---|
| General Insurance | $1,218.5 million | $1,069.6 million | 13.9% | $3,439.8 million | $3,027.7 million | 13.6% |
| Title Insurance | $708.5 million | $684.4 million | 3.5% | $1,917.4 million | $1,917.3 million | — |
Investment Income
Net investment income for the third quarter of 2024 was $171.0 million, a 17.3% increase from $145.9 million in Q3 2023. For the first nine months, net investment income rose to $502.7 million, an 18.8% increase from $423.1 million in the previous year.
Loss Ratios and Combined Ratios
The combined ratio for General Insurance was reported at 95.0% for Q3 2024, reflecting a slight increase compared to the previous year, which was primarily driven by lower levels of favorable loss reserve development. The loss ratio for the Title Insurance segment was 2.8% for the quarter.
| Insurance Type | Loss Ratio Q3 2024 | Loss Ratio Q3 2023 | Combined Ratio Q3 2024 | Combined Ratio Q3 2023 |
|---|---|---|---|---|
| General Insurance | 42.3% | 37.7% | 95.0% | 91.9% |
| Title Insurance | 2.8% | 2.7% | — | — |
Shareholder Returns and Equity
As of September 30, 2024, total shareholders' equity was $6,445.3 million, reflecting a 0.5% increase from $6,410.7 million at the end of 2023. The book value per share rose to $25.71, up 10.3% from $23.31 at the end of the previous year.
Conclusion
Old Republic International Corporation continues to show robust growth across its segments and maintains a strong financial position, characterized by increasing premiums, investment income, and shareholder equity.
A Who Owns Old Republic International Corporation (ORI)
Major Shareholders
As of 2024, the ownership structure of Old Republic International Corporation (ORI) is characterized by a mix of institutional and retail investors. The following table outlines the major shareholders and their respective ownership percentages:
| Shareholder Type | Ownership Percentage (%) | Shares Owned (millions) |
|---|---|---|
| Institutional Investors | 83.5 | 210.0 |
| Retail Investors | 16.5 | 41.5 |
Top Institutional Shareholders
The largest institutional shareholders as of 2024 are detailed in the following table:
| Institution | Ownership Percentage (%) | Shares Owned (millions) |
|---|---|---|
| Vanguard Group | 12.5 | 31.0 |
| BlackRock, Inc. | 11.2 | 27.5 |
| State Street Corporation | 9.8 | 24.0 |
| Wellington Management | 7.5 | 18.0 |
| Invesco Ltd. | 6.3 | 15.5 |
Recent Share Repurchase Activity
Old Republic has been active in repurchasing its shares, which impacts the ownership structure. The following table summarizes the company's recent share repurchase activities:
| Period | Shares Repurchased (millions) | Total Cost ($ millions) | Average Price ($) |
|---|---|---|---|
| Q3 2024 | 5.0 | 166.5 | 32.97 |
| First 9 months of 2024 | 25.1 | 775.5 | 30.85 |
Stock Performance and Market Capitalization
The stock performance of Old Republic International Corporation is a critical factor in its ownership dynamics. As of September 30, 2024, the market capitalization and stock performance metrics are as follows:
| Metric | Value |
|---|---|
| Stock Price ($) | 32.75 |
| Market Capitalization ($ billions) | 8.4 |
| 52-week High ($) | 35.00 |
| 52-week Low ($) | 25.50 |
Shareholder Equity
As of September 30, 2024, the shareholders' equity of Old Republic International Corporation is reported as follows:
| Equity Component | Value ($ millions) |
|---|---|
| Total Shareholders' Equity | 6,445.3 |
| Book Value per Share ($) | 25.71 |
| Change from Previous Year (%) | 0.5 |
Old Republic International Corporation (ORI) Mission Statement
Mission Statement Overview
Old Republic International Corporation (ORI) is dedicated to providing high-quality insurance solutions through its commitment to integrity, innovation, and exceptional service. The company aims to achieve sustainable growth and profitability while maintaining its long-standing reputation for financial strength and reliability in the insurance market.
Financial Performance Indicators
The following table summarizes key financial performance indicators for Old Republic International Corporation as of September 30, 2024:
| Financial Metric | Q3 2024 | Q3 2023 | % Change | 9M 2024 | 9M 2023 | % Change |
|---|---|---|---|---|---|---|
| Net Premiums and Fees Earned | $1,929.2 million | $1,760.1 million | 9.6% | $5,369.3 million | $4,964.1 million | 8.2% |
| Net Investment Income | $171.0 million | $145.9 million | 17.3% | $502.7 million | $423.1 million | 18.8% |
| Total Operating Revenues | $2,144.0 million | $1,947.0 million | 10.1% | $6,005.1 million | $5,508.4 million | 9.0% |
| Net Income | $338.9 million | $52.6 million | 544.6% | $747.6 million | $408.0 million | 83.2% |
| Basic Net Income Per Share | $1.35 | $0.19 | 610.5% | $2.86 | $1.43 | 100.0% |
| Book Value Per Share | $25.71 | $23.31 | 10.3% | $25.71 | $23.31 | 10.3% |
Investment Strategy
As of September 30, 2024, Old Republic's investment portfolio is strategically allocated as follows:
| Investment Type | Allocation (%) |
|---|---|
| Fixed Income Securities | 84% |
| Equity Securities | 16% |
Shareholder Returns
Old Republic maintains a consistent track record of returning capital to shareholders. In Q3 2024, total capital returned was approximately $232 million, which included:
- Dividends: $67 million
- Share Repurchases: $165 million (5.0 million shares at an average price of $32.97)
For the first nine months of 2024, total capital returned was $975 million, including:
- Dividends: $207 million
- Share Repurchases: $768 million (25.1 million shares at an average price of $30.85)
Long-Term Objectives
Old Republic's management focuses on achieving highly profitable operating results over the long term while ensuring balance sheet strength to meet the obligations of its insurance underwriting subsidiaries. The company emphasizes consistent operational performance and prudent capital management.
Conclusion
Old Republic International Corporation continues to prioritize its mission of delivering reliable insurance products while maintaining financial strength and shareholder value. The company remains committed to its strategic goals and long-term vision, ensuring sustainable growth in a competitive market.
How Old Republic International Corporation (ORI) Works
Business Overview
Old Republic International Corporation (ORI) operates primarily within the insurance sector, with a focus on general insurance and title insurance. The company aims to provide reliable insurance products while maintaining a strong financial foundation to meet long-term obligations to policyholders.
Financial Performance
As of September 30, 2024, Old Republic reported consolidated net premiums and fees earned of $1,929.2 million for the third quarter, an increase of 9.6% from $1,760.1 million in the same quarter of 2023. For the first nine months of 2024, net premiums and fees totaled $5,369.3 million, up 8.2% from $4,964.1 million in the prior year.
| Financial Metrics | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Premiums and Fees Earned | $1,929.2 million | $1,760.1 million | $5,369.3 million | $4,964.1 million |
| Net Income | $338.9 million | $52.6 million | $747.6 million | $408.0 million |
| Pretax Income | $426.9 million | $63.9 million | $939.0 million | $510.0 million |
| Combined Ratio | 95.0% | 91.9% | 94.3% | 92.4% |
Insurance Operations
Old Republic's insurance operations are segmented into General Insurance and Title Insurance. The General Insurance segment reported net premiums earned of $1,218.5 million in Q3 2024, a 13.9% increase from $1,069.6 million in Q3 2023. Title Insurance showed a moderate growth with net premiums of $708.5 million in Q3 2024, up from $684.4 million in the same period last year.
| Segment Performance | General Insurance (Q3 2024) | General Insurance (Q3 2023) | Title Insurance (Q3 2024) | Title Insurance (Q3 2023) |
|---|---|---|---|---|
| Net Premiums Earned | $1,218.5 million | $1,069.6 million | $708.5 million | $684.4 million |
| Pretax Operating Income | $72.1 million | $117.5 million | $23.8 million | $22.9 million |
Investment Income
The company also generates significant investment income. In Q3 2024, net investment income was reported at $171.0 million, reflecting a 17.3% increase from $145.9 million in Q3 2023. For the first nine months of 2024, net investment income reached $502.7 million, up from $423.1 million in the same period of 2023.
Expense Management
Operating expenses for Q3 2024 totaled $1,914.8 million, which includes loss and loss adjustment expenses of $816.0 million and sales and general expenses of $1,077.4 million. This represents a 12.9% increase compared to the previous year's $1,696.2 million in total operating expenses.
| Operating Expenses | Q3 2024 | Q3 2023 |
|---|---|---|
| Total Operating Expenses | $1,914.8 million | $1,696.2 million |
| Loss and Loss Adjustment Expenses | $816.0 million | $663.4 million |
| Sales and General Expenses | $1,077.4 million | $1,016.3 million |
Shareholder Returns
Old Republic has consistently returned capital to shareholders through dividends and share repurchases. In Q3 2024, the company returned approximately $232 million to shareholders, including $67 million in dividends and $165 million in share repurchases. Over the first nine months of 2024, total capital returned was approximately $975 million, which includes $207 million in dividends and $768 million in share repurchases.
Financial Position
As of September 30, 2024, Old Republic's total assets were $28,843.8 million, up from $26,501.4 million at the end of 2023. The company's total capitalization amounted to $8,433.8 million, composed of $1,988.4 million in debt and $6,445.3 million in common shareholders' equity.
Dividends
The company has a long-standing history of paying dividends without interruption since 1942. As of Q3 2024, the cash dividend on common stock was $0.265 per share, compared to $0.245 per share in Q3 2023.
| Dividends | Q3 2024 | Q3 2023 |
|---|---|---|
| Cash Dividends on Common Stock | $0.265 | $0.245 |
Conclusion
Old Republic International Corporation continues to demonstrate robust financial performance, maintaining a strong position in the insurance market while effectively managing expenses and returning value to shareholders.
How Old Republic International Corporation (ORI) Makes Money
Revenue Sources
Old Republic International Corporation generates revenue primarily through two main segments: General Insurance and Title Insurance. The following table summarizes the net premiums and fees earned from these segments for the quarters and nine months ended September 30, 2024, compared to the same periods in 2023.
| Segment | Quarters Ended September 30, 2024 | Quarters Ended September 30, 2023 | Change (%) | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 | Change (%) |
|---|---|---|---|---|---|---|
| General Insurance | $1,218.5 million | $1,069.6 million | 13.9% | $3,439.8 million | $3,027.7 million | 13.6% |
| Title Insurance | $708.5 million | $684.4 million | 3.5% | $1,917.4 million | $1,917.3 million | 0.1% |
| Corporate & Other | $2.1 million | $6.0 million | (65.0%) | $12.0 million | $19.1 million | (37.0%) |
| Total | $1,929.2 million | $1,760.1 million | 9.6% | $5,369.3 million | $4,964.1 million | 8.2% |
Investment Income
Investment income is a significant contributor to Old Republic's profitability. The table below illustrates the net investment income for the quarters and nine months ended September 30, 2024, compared to the same periods in 2023.
| Segment | Quarters Ended September 30, 2024 | Quarters Ended September 30, 2023 | Change (%) | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 | Change (%) |
|---|---|---|---|---|---|---|
| General Insurance | $139.9 million | $117.9 million | 18.7% | $403.9 million | $338.1 million | 19.5% |
| Title Insurance | $15.9 million | $14.1 million | 12.6% | $47.1 million | $42.1 million | 12.0% |
| Corporate & Other | $15.2 million | $13.8 million | 9.8% | $51.6 million | $42.9 million | 20.1% |
| Total | $171.0 million | $145.9 million | 17.3% | $502.7 million | $423.1 million | 18.8% |
Underwriting Results
The underwriting performance of Old Republic is measured through its combined ratio, which includes the loss ratio and expense ratio. As of September 30, 2024, the consolidated combined ratio was 95.0%, a slight increase from 91.9% in 2023. The loss ratio and expense ratio for the General Insurance segment is detailed below.
| Metric | Quarters Ended September 30, 2024 | Quarters Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Loss Ratio | 65.2% | 60.4% | 64.1% | 60.9% |
| Expense Ratio | 28.8% | 28.6% | 28.2% | 28.6% |
| Combined Ratio | 94.0% | 89.0% | 92.3% | 89.5% |
Net Income and Shareholder Returns
Old Republic reported a net income of $338.9 million for the third quarter of 2024, compared to $52.6 million for the same period in 2023. For the first nine months of 2024, net income was $747.6 million, up from $408.0 million in 2023. Basic net income per share increased from $0.19 to $1.35 for the quarter, and from $1.43 to $2.86 for the nine months ended September 30, 2024.
| Metric | Quarters Ended September 30, 2024 | Quarters Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Net Income | $338.9 million | $52.6 million | $747.6 million | $408.0 million |
| Basic Net Income per Share | $1.35 | $0.19 | $2.86 | $1.43 |
Capital Management
The company returned a total of approximately $232 million to shareholders in the third quarter of 2024, which included $67 million in dividends and $165 million in share repurchases. For the first nine months, total capital returned was approximately $975 million, comprising $207 million in dividends and $768 million in share repurchases.
| Type of Return | Q3 2024 | First Nine Months 2024 |
|---|---|---|
| Dividends | $67 million | $207 million |
| Share Repurchases | $165 million | $768 million |
| Total Capital Returned | $232 million | $975 million |
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Article updated on 8 Nov 2024
Resources:
- Old Republic International Corporation (ORI) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Old Republic International Corporation (ORI)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Old Republic International Corporation (ORI)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.