OLD REPUBLIC REPORTS RESULTS FOR THE FOURTH QUARTER AND FULL YEAR 2024
Old Republic International (NYSE: ORI) reported its Q4 and full-year 2024 results. Fourth quarter net income per diluted share was $0.42, down from $0.69 last year, while net operating income per diluted share increased to $0.90 from $0.69. The company achieved consolidated pretax operating income of $285.0M for Q4 and $999.8M for the full year.
Key highlights include: consolidated net premiums and fees earned increased 11.4% in Q4 and 9.0% for the full year; net investment income grew 9.8% in Q4 and 16.4% annually; Q4 consolidated combined ratio improved to 92.7% from 93.3% last year. The company returned $733M to shareholders during Q4 and $1,708M during 2024 through dividends and share repurchases. Book value per share was $22.84, up 11.1% including dividends declared (including a special $2.00 per share dividend).
Old Republic International (NYSE: ORI) ha pubblicato i risultati del quarto trimestre e dell'intero anno 2024. Il reddito netto per azione diluita del quarto trimestre è stato di $0.42, in calo rispetto a $0.69 dell'anno scorso, mentre il reddito operativo netto per azione diluita è aumentato a $0.90 rispetto a $0.69. L'azienda ha raggiunto un reddito operativo consolidato ante imposte di $285.0M per il quarto trimestre e di $999.8M per l'intero anno.
I punti salienti includono: i premi e le commissioni consolidati guadagnati sono aumentati dell'11.4% nel quarto trimestre e del 9.0% per l'intero anno; il reddito da investimenti netti è cresciuto del 9.8% nel quarto trimestre e del 16.4% annualmente; il rapporto combinato consolidato del quarto trimestre è migliorato al 92.7% rispetto al 93.3% dell'anno scorso. L'azienda ha restituito $733M agli azionisti durante il quarto trimestre e $1,708M durante il 2024 tramite dividendi e riacquisto di azioni. Il valore contabile per azione era di $22.84, in aumento dell'11.1% includendo i dividendi dichiarati (incluso un dividendo speciale di $2.00 per azione).
Old Republic International (NYSE: ORI) informó sobre sus resultados del cuarto trimestre y del año completo 2024. El ingreso neto por acción diluida en el cuarto trimestre fue de $0.42, una disminución con respecto a $0.69 del año pasado, mientras que el ingreso operativo neto por acción diluida aumentó a $0.90 desde $0.69. La empresa alcanzó un ingreso operativo consolidado antes de impuestos de $285.0M para el cuarto trimestre y $999.8M para el año completo.
Los aspectos destacados incluyen: las primas y tarifas consolidadas ganadas aumentaron un 11.4% en el cuarto trimestre y un 9.0% para el año completo; el ingreso neto por inversiones creció un 9.8% en el cuarto trimestre y un 16.4% anualmente; el ratio combinado consolidado del cuarto trimestre mejoró al 92.7% desde el 93.3% del año pasado. La empresa devolvió $733M a los accionistas durante el cuarto trimestre y $1,708M durante 2024 a través de dividendos y recompra de acciones. El valor contable por acción fue de $22.84, un aumento del 11.1% incluyendo los dividendos declarados (incluido un dividendo especial de $2.00 por acción).
올드 리퍼블릭 인터내셔널 (NYSE: ORI)는 2024년 4분기 및 연간 결과를 보고했습니다. 4분기 희석 주당 순이익은 $0.42였습니다, 작년의 $0.69에서 감소했으며, 희석 주당 운영 순이익은 $0.90으로 증가했습니다 ($0.69에서). 회사는 4분기 동안 $285.0M의 세전 운영 수익을, 연간으로는 $999.8M을 기록했습니다.
주요 하이라이트는 다음과 같습니다: 4분기 및 연간으로 각각 11.4%, 9.0% 증가한 총 수익 및 수수료; 4분기 순 투자 수익은 9.8% 증가했고 연간 16.4% 증가했습니다; 4분기 총 결합 비율은 지난해 93.3%에서 92.7%로 개선되었습니다. 회사는 4분기 동안 주주에게 $733M을, 2024년 동안 $1,708M을 배당금 및 자사주 매입을 통해 돌려주었습니다. 주당 장부 가치는 $22.84로, 배당금이 포함될 경우 11.1% 증가했습니다 (특별 배당금 $2.00 포함).
Old Republic International (NYSE: ORI) a publié ses résultats pour le quatrième trimestre et l'année complète 2024. Le bénéfice net par action diluée du quatrième trimestre était de $0.42, en baisse par rapport à $0.69 l'année dernière, tandis que le revenu opérationnel net par action diluée a augmenté à $0.90 contre $0.69. L'entreprise a réalisé un revenu opérationnel consolidé avant impôts de $285.0M pour le quatrième trimestre et de $999.8M pour l'année entière.
Les points forts incluent : les primes et frais consolidés gagnés ont augmenté de 11.4% au quatrième trimestre et de 9.0% pour l'année entière; le revenu net des investissements a cru de 9.8% au quatrième trimestre et de 16.4% annuellement; le ratio combiné consolidé du quatrième trimestre s'est amélioré à 92.7% contre 93.3% l'année précédente. L'entreprise a retourné $733M aux actionnaires au quatrième trimestre et $1,708M pendant 2024 par le biais de dividendes et de rachats d'actions. La valeur comptable par action était de $22.84, en hausse de 11.1% incluant les dividendes déclarés (y compris un dividende spécial de $2.00 par action).
Old Republic International (NYSE: ORI) hat seine Ergebnisse für das vierte Quartal und das gesamte Jahr 2024 berichtet. Der Nettoertrag je verwässerter Aktie im vierten Quartal betrug $0.42, ein Rückgang von $0.69 im Vorjahr, während der operative Nettoertrag je verwässerter Aktie auf $0.90 anstieg von $0.69. Das Unternehmen erzielte ein konsolidiertes operatives Einkommen vor Steuern von $285,0M für das vierte Quartal und $999,8M für das gesamte Jahr.
Wichtige Highlights sind: die konsolidierten Nettoprämien und Gebühren stiegen im vierten Quartal um 11,4% und für das gesamte Jahr um 9,0%; die Nettoanlageerträge wuchsen im vierten Quartal um 9,8% und jährlich um 16,4%; das konsolidierte kombinierte Verhältnis verbesserte sich im vierten Quartal auf 92,7% von 93,3% im Vorjahr. Das Unternehmen gab $733M an die Aktionäre im vierten Quartal und $1,708M im Jahr 2024 durch Dividenden und Aktienrückkäufe zurück. Der Buchwert je Aktie betrug $22.84, was einem Anstieg von 11,1% einschließlich der erklärten Dividenden entspricht (einschließlich einer Sonderdividende von $2.00 pro Aktie).
- Net operating income per diluted share increased 30.4% to $0.90 in Q4
- Consolidated net premiums and fees earned grew 11.4% in Q4
- Net investment income increased 16.4% for full year
- Combined ratio improved to 92.7% in Q4 from 93.3%
- Returned significant capital to shareholders: $1,708M in 2024
- Q4 net income per diluted share decreased to $0.42 from $0.69 year-over-year
- Full year combined ratio worsened to 93.9% from 92.6%
- Book value per share decreased 2.0% to $22.84 from $23.31
- Investment losses of $154.4M in Q4 2024
Insights
Old Republic's Q4 2024 results reveal a complex picture of operational strength offset by investment market challenges. The 20.2% increase in pretax operating income to
Key operational highlights worth examining:
- The Specialty Insurance segment (formerly General Insurance) posted impressive growth with 13.3% increase in net premiums earned, driven by rate increases and high retention rates. The segment's combined ratio of
91.8% indicates strong underwriting discipline. - Investment portfolio strategy shows prudent risk management with
84% allocation to fixed income securities, though the$154.4 million in investment losses reflects broader market volatility impacts. - Capital management remains aggressive, with
$733 million returned to shareholders in Q4 alone through dividends and share repurchases, demonstrating confidence in financial strength.
The most significant concern is the investment performance, with unrealized losses of
The improved combined ratio of
Dollar amounts (other than per share amounts) are presented in millions, except as otherwise indicated.
- Fourth quarter net income per diluted share of
$0.42 $0.69 - Fourth quarter net operating income (net income excluding investment gains or losses) per diluted share of
$0.90 $0.69 - Consolidated pretax operating income of
$285.0 $999.8 - Consolidated net premiums and fees earned increased
11.4% in the quarter and9.0% for the full year. - Net investment income increased
9.8% in the quarter and16.4% for the full year. - Fourth quarter consolidated combined ratio of
92.7% , compared to93.3% last year; full year consolidated combined ratio of93.9% , compared to92.6% last year. - Favorable loss reserve development of 2.9 points in the quarter, compared to 4.7 points last year.
- Total capital returned to shareholders of
$733 $1,708 - Book value per share of
$22.84 $2.00 11.1% since year-end 2023.
OVERALL RESULTS | ||||||||||||
Quarters Ended December 31, | Years Ended December 31, | |||||||||||
2024 | 2023 | % Change | 2024 | 2023 | % Change | |||||||
Pretax income | $ 130.6 | $ 237.4 | $ 747.4 | |||||||||
Pretax investment gains (losses) | (154.4) | 0.2 | 69.9 | (190.9) | ||||||||
Pretax income excluding investment gains (losses) | $ 285.0 | $ 237.1 | 20.2 % | $ 999.8 | $ 938.4 | 6.5 % | ||||||
Net income | $ 105.1 | $ 190.6 | $ 852.7 | $ 598.6 | ||||||||
Net of tax investment gains (losses) | (121.9) | 0.1 | 55.7 | (150.8) | ||||||||
Net income excluding investment gains (losses) | $ 227.0 | $ 190.4 | 19.2 % | $ 797.0 | $ 749.5 | 6.3 % | ||||||
Combined ratio | 92.7 % | 93.3 % | 93.9 % | 92.6 % | ||||||||
PER DILUTED SHARE | ||||||||||||
Quarters Ended December 31, | Years Ended December 31, | |||||||||||
2024 | 2023 | % Change | 2024 | 2023 | % Change | |||||||
Net income | $ 0.42 | $ 0.69 | $ 3.24 | $ 2.10 | ||||||||
Net of tax investment gains (losses) | (0.48) | — | 0.21 | (0.53) | ||||||||
Net income excluding investment gains (losses) | $ 0.90 | $ 0.69 | 30.4 % | $ 3.03 | $ 2.63 | 15.2 % | ||||||
SHAREHOLDERS' EQUITY (BOOK VALUE) | ||||||||||||
Dec. 31, | Dec. 31, | |||||||||||
2024 | 2023 | % Change | ||||||||||
Total | (12.4) % | |||||||||||
Per common share | $ 22.84 | $ 23.31 | (2.0) % | |||||||||
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. Therefore, the evaluation of periodic and long-term results excludes consideration of all investment gains (losses). Under Generally Accepted Accounting Principles (GAAP), however, net income, inclusive of investment gains (losses), is the measure of total profitability.
In management's opinion, the focus on income excluding investment gains (losses), also described herein as operating 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.
FINANCIAL HIGHLIGHTS | ||||||||||||
Quarters Ended December 31, | Years Ended December 31, | |||||||||||
SUMMARY INCOME STATEMENTS: | 2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||
Revenues: | ||||||||||||
Net premiums and fees earned | $ 1,941.5 | $ 1,743.6 | 11.4 % | $ 7,310.8 | $ 6,707.7 | 9.0 % | ||||||
Net investment income | 170.3 | 155.1 | 9.8 | 673.1 | 578.3 | 16.4 | ||||||
Other income | 44.5 | 42.0 | 5.9 | 177.6 | 163.1 | 8.9 | ||||||
Total operating revenues | 2,156.4 | 1,940.8 | 11.1 | 8,161.6 | 7,449.3 | 9.6 | ||||||
Net investment gains (losses): | ||||||||||||
Realized from actual transactions and impairments | (24.2) | (53.8) | 88.8 | (67.0) | ||||||||
Unrealized from changes in fair value of equity securities | (130.1) | 54.1 | (18.9) | (123.9) | ||||||||
Total net investment gains (losses) | (154.4) | 0.2 | 69.9 | (190.9) | ||||||||
Total revenues | 2,002.0 | 1,941.1 | 8,231.5 | 7,258.3 | ||||||||
Operating expenses: | ||||||||||||
Loss and loss adjustment expenses | 792.9 | 711.4 | 11.5 | 3,048.0 | 2,596.6 | 17.4 | ||||||
Underwriting, acquisition, and other expenses | 1,061.1 | 975.7 | 8.8 | 4,036.4 | 3,843.6 | 5.0 | ||||||
Interest and other expenses | 17.2 | 16.4 | 4.7 | 77.3 | 70.5 | 9.6 | ||||||
Total expenses | 1,871.3 | 1,703.6 | 9.8 % | 7,161.7 | 6,510.8 | 10.0 % | ||||||
Pretax income | 130.6 | 237.4 | 1,069.7 | 747.4 | ||||||||
Income taxes | 25.5 | 46.7 | 216.9 | 148.7 | ||||||||
Net income | $ 105.1 | $ 190.6 | $ 852.7 | $ 598.6 | ||||||||
COMMON STOCK STATISTICS: | ||||||||||||
Components of net income per share: | ||||||||||||
Basic net income excluding investment gains (losses) | $ 0.92 | $ 0.70 | 31.4 % | $ 3.09 | $ 2.65 | 16.6 % | ||||||
Net investment gains (losses): | ||||||||||||
Realized investment gains (losses) | (0.08) | (0.16) | 0.27 | (0.19) | ||||||||
Unrealized from changes in fair value of equity | (0.41) | 0.16 | (0.06) | (0.34) | ||||||||
Basic net income | $ 0.43 | $ 0.70 | $ 3.30 | $ 2.12 | ||||||||
Diluted net income excluding investment | $ 0.90 | $ 0.69 | 30.4 % | $ 3.03 | $ 2.63 | 15.2 % | ||||||
Net investment gains (losses): | ||||||||||||
Realized investment gains (losses) | (0.07) | (0.15) | 0.27 | (0.19) | ||||||||
Unrealized from changes in fair value of equity | (0.41) | 0.15 | (0.06) | (0.34) | ||||||||
Diluted net income | $ 0.42 | $ 0.69 | $ 3.24 | $ 2.10 | ||||||||
Cash dividends declared on common stock | $ 2.265 | $ 0.245 | $ 3.060 | $ 0.980 | ||||||||
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.
Effective as of year-end 2024, the Company renamed its reportable segment formerly referred to as "General Insurance" to "Specialty Insurance." Management believes this name more appropriately reflects Old Republic's specialty P&C strategy, with 17 underwriting businesses focused on unique niche markets with specialized distribution, underwriting, claims, and risk control models.
Sources of Consolidated Income | |||||||||||
Quarters Ended December 31, | Years Ended December 31, | ||||||||||
2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||
Net premiums and fees earned: | |||||||||||
Specialty Insurance | 13.3 % | 13.5 % | |||||||||
Title Insurance | 701.6 | 645.4 | 8.7 | 2,619.1 | 2,562.8 | 2.2 | |||||
Corporate & Other | 2.6 | 6.5 | (59.7) | 14.6 | 25.6 | (42.8) | |||||
Consolidated | 11.4 % | 9.0 % | |||||||||
Underwriting income (loss): (a) | |||||||||||
Specialty Insurance | $ 100.9 | $ 87.4 | 15.4 % | $ 364.0 | $ 406.0 | (10.3) % | |||||
Title Insurance | 39.1 | 28.7 | 36.1 | 79.7 | 75.4 | 5.7 | |||||
Corporate & Other | (8.1) | (17.7) | 54.2 | (39.8) | (50.8) | 21.8 | |||||
Consolidated | $ 132.0 | $ 98.5 | 34.0 % | $ 404.0 | $ 430.6 | (6.2) % | |||||
Consolidated combined ratio: | |||||||||||
Loss ratio: | |||||||||||
Current year | 43.7 % | 45.5 % | 43.9 % | 43.3 % | |||||||
Prior years | (2.9) | (4.7) | (2.2) | (4.6) | |||||||
Total | 40.8 | 40.8 | 41.7 | 38.7 | |||||||
Expense ratio | 51.9 | 52.5 | 52.2 | 53.9 | |||||||
Combined ratio | 92.7 % | 93.3 % | 93.9 % | 92.6 % | |||||||
Net investment income: | |||||||||||
Specialty Insurance | $ 142.5 | $ 124.6 | 14.3 % | $ 546.5 | $ 462.7 | 18.1 % | |||||
Title Insurance | 16.0 | 14.9 | 7.5 | 63.2 | 57.0 | 10.8 | |||||
Corporate & Other | 11.6 | 15.5 | (24.8) | 63.3 | 58.5 | 8.2 | |||||
Consolidated | $ 170.3 | $ 155.1 | 9.8 % | $ 673.1 | $ 578.3 | 16.4 % | |||||
Interest and other expenses (income): | |||||||||||
Specialty Insurance | $ 15.5 | $ 17.3 | $ 62.3 | $ 80.9 | |||||||
Title Insurance | (0.2) | (0.2) | (1.1) | (1.0) | |||||||
Corporate & Other (b) | 1.9 | (0.5) | 16.1 | (9.3) | |||||||
Consolidated | $ 17.2 | $ 16.4 | 4.7 % | $ 77.3 | $ 70.5 | 9.6 % | |||||
Pretax income excluding investment gains (losses): | |||||||||||
Specialty Insurance | $ 228.0 | $ 194.8 | 17.0 % | $ 848.3 | $ 787.8 | 7.7 % | |||||
Title Insurance | 55.4 | 43.9 | 26.3 | 144.1 | 133.5 | 7.9 | |||||
Corporate & Other | 1.6 | (1.5) | N/M | 7.3 | 16.9 | (56.5) | |||||
Consolidated | 285.0 | 237.1 | 20.2 % | 999.8 | 938.4 | 6.5 % | |||||
Income taxes | 58.0 | 46.6 | 202.7 | 188.8 | |||||||
Net income excluding investment | |||||||||||
gains (losses) | 227.0 | 190.4 | 19.2 % | 797.0 | 749.5 | 6.3 % | |||||
Consolidated pretax investment gains (losses): | |||||||||||
Realized from actual transactions | |||||||||||
and impairments | (24.2) | (53.8) | 88.8 | (67.0) | |||||||
Unrealized from changes in | |||||||||||
fair value of equity securities | (130.1) | 54.1 | (18.9) | (123.9) | |||||||
Total | (154.4) | 0.2 | 69.9 | (190.9) | |||||||
Income taxes (credits) | (32.5) | — | 14.2 | (40.0) | |||||||
Net of tax investment gains (losses) | (121.9) | 0.1 | 55.7 | (150.8) | |||||||
Net income | $ 105.1 | $ 190.6 | $ 852.7 | $ 598.6 | |||||||
(a) | Includes related services. |
(b) | Includes consolidation/elimination entries. |
Specialty Insurance Segment Operating Results | |||||||||||
Quarters Ended December 31, | Years Ended December 31, | ||||||||||
2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||
Net premiums written | 16.2 % | 15.5 % | |||||||||
Net premiums earned | 1,237.2 | 1,091.5 | 13.3 | 4,677.0 | 4,119.2 | 13.5 | |||||
Net investment income | 142.5 | 124.6 | 14.3 | 546.5 | 462.7 | 18.1 | |||||
Other income | 44.4 | 41.9 | 6.1 | 177.0 | 162.2 | 9.1 | |||||
Operating revenues | 1,424.2 | 1,258.1 | 13.2 | 5,400.6 | 4,744.3 | 13.8 | |||||
Loss and loss adjustment expenses | 793.4 | 710.5 | 11.7 | 2,999.1 | 2,553.3 | 17.5 | |||||
Underwriting, acquisition, and other expenses | 387.2 | 335.4 | 15.4 | 1,490.8 | 1,322.2 | 12.7 | |||||
Interest and other expenses | 15.5 | 17.3 | (10.1) | 62.3 | 80.9 | (22.9) | |||||
Operating expenses | 1,196.2 | 1,063.3 | 12.5 | 4,552.3 | 3,956.4 | 15.1 | |||||
Segment pretax operating income | $ 228.0 | $ 194.8 | 17.0 % | $ 848.3 | $ 787.8 | 7.7 % | |||||
Loss ratio: | |||||||||||
Current year | 66.5 % | 70.2 % | 66.4 % | 67.7 % | |||||||
Prior years | (2.4) | (5.1) | (2.3) | (5.7) | |||||||
Total | 64.1 | 65.1 | 64.1 | 62.0 | |||||||
Expense ratio | 27.7 | 26.9 | 28.1 | 28.2 | |||||||
Combined ratio | 91.8 % | 92.0 % | 92.2 % | 90.2 % | |||||||
Specialty Insurance net premiums earned increased
The net investment income increase for both periods was primarily driven by higher investment yields earned, along with contributions from a higher invested asset base.
Overall, the 2024 loss ratios for Specialty Insurance reflect favorable prior year loss reserve development coming predominately from workers' compensation, commercial auto, and property coverages, however to a lesser degree than the historically high levels experienced in 2023. The 2024 favorable development was partially offset by unfavorable development from general liability and transactional risk. The current year loss ratio improved in the quarter due primarily to favorable trends in workers' compensation and commercial auto (which included a true-up for the full year in the fourth quarter of 2023). The expense ratios are in line with expectations and generally reflect the benefit from scale, offset by costs incurred to start-up new underwriting subsidiaries and invest in information technology.
Together, these factors produced profitable combined ratios and strong pretax operating income for the quarter and the full year. For Specialty Insurance, we target combined ratios between
Title Insurance Segment Operating Results | |||||||||||
Quarters Ended December 31, | Years Ended December 31, | ||||||||||
2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||
Net premiums and fees earned | $ 701.6 | $ 645.4 | 8.7 % | 2.2 % | |||||||
Net investment income | 16.0 | 14.9 | 7.5 | 63.2 | 57.0 | 10.8 | |||||
Other income | 0.1 | 0.1 | N/M | 0.6 | 0.7 | N/M | |||||
Operating revenues | 717.8 | 660.5 | 8.7 | 2,682.9 | 2,620.6 | 2.4 | |||||
Loss and loss adjustment expenses | (0.8) | (1.0) | 16.5 | 46.1 | 48.7 | (5.4) | |||||
Underwriting, acquisition, and other expenses | 663.5 | 617.9 | 7.4 | 2,493.8 | 2,439.3 | 2.2 | |||||
Interest and other expenses (income) | (0.2) | (0.2) | N/M | (1.1) | (1.0) | N/M | |||||
Operating expenses | 662.4 | 616.6 | 7.4 | 2,538.8 | 2,487.0 | 2.1 | |||||
Segment pretax operating income | $ 55.4 | $ 43.9 | 26.3 % | $ 144.1 | $ 133.5 | 7.9 % | |||||
Loss ratio: | |||||||||||
Current year | 3.3 % | 3.3 % | 3.4 % | 3.7 % | |||||||
Prior years | (3.4) | (3.5) | (1.6) | (1.8) | |||||||
Total | (0.1) | (0.2) | 1.8 | 1.9 | |||||||
Expense ratio | 94.5 | 95.7 | 95.2 | 95.2 | |||||||
Combined ratio | 94.4 % | 95.5 % | 97.0 % | 97.1 % | |||||||
Title Insurance net premiums and fees earned increased by
Net investment income increased, reflecting higher investment yields earned, partially offset by a lower invested asset base.
The loss ratios for Title Insurance reflect consistent levels of favorable prior year loss reserve development. For the full year, the current year loss ratio improved, driven by favorable claim trends.
Title Insurance expenses for the full year 2023 were impacted by the recovery of a
Together, these factors produced higher pretax operating income in both 2024 periods.
Corporate & Other Operating Results | ||||||||||||
Quarters Ended December 31, | Years Ended December 31, | |||||||||||
2024 | 2023 | % Change | 2024 | 2023 | % Change | |||||||
Net premiums earned | $ 2.6 | $ 6.5 | (59.7) % | $ 14.6 | $ 25.6 | (42.8) % | ||||||
Net investment income | 11.6 | 15.5 | (24.8) | 63.3 | 58.5 | 8.2 | ||||||
Operating revenues | 14.3 | 22.1 | (35.2) | 77.9 | 84.2 | (7.5) | ||||||
Benefits, loss and loss adjustment expenses | 0.4 | 1.9 | (76.4) | 2.6 | (5.4) | 149.4 | ||||||
Insurance expenses | 0.9 | 3.8 | (74.7) | 7.6 | 16.1 | (52.3) | ||||||
Corporate, interest, and other expenses - net | 11.2 | 17.8 | (36.9) | 60.1 | 56.6 | 6.3 | ||||||
Operating expenses | 12.7 | 23.6 | (46.3) | 70.5 | 67.3 | 4.8 | ||||||
Corporate & Other pretax operating income (loss) | $ 1.6 | $ (1.5) | N/M | $ 7.3 | $ 16.9 | (56.5) % | ||||||
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. Higher investment yields drove growth in net investment income for the full year. However, both 2024 periods were affected by a lower invested asset base, impacted by share repurchase activity, the sale of the RFIG Run-off business, and the timing of debt issuance and repayment activity in 2024. Full year corporate expenses reflect an increase in interest costs associated with the new senior notes issued in March 2024. In addition, full year 2023 expenses include a one-time charge of
Summary Consolidated Balance Sheet | ||||
December 31, | December 31, | |||
2024 | 2023 | |||
Assets: | ||||
Fixed income securities (at fair value) | $ 12,091.5 | $ 12,139.9 | ||
Short-term investments (at fair value which approximates cost) | 1,403.7 | 1,032.6 | ||
Equity securities (at fair value) | 2,540.7 | 2,660.8 | ||
Other investments | 42.8 | 34.3 | ||
Cash | 208.0 | 202.8 | ||
Accrued investment income | 127.9 | 117.0 | ||
Accounts and notes receivable | 2,483.1 | 2,201.4 | ||
Federal income tax recoverable: Current | 13.8 | 21.8 | ||
Reinsurance balances and funds held | 423.1 | 544.7 | ||
Reinsurance recoverable | 6,914.1 | 5,951.4 | ||
Deferred policy acquisition costs | 531.3 | 417.8 | ||
Other assets | 1,080.2 | 1,176.4 | ||
Total assets | $ 27,860.7 | $ 26,501.4 | ||
Liabilities and Shareholders' Equity: | ||||
Loss and loss adjustment expense reserves | $ 13,727.7 | $ 12,538.2 | ||
Unearned premiums | 3,505.4 | 3,042.7 | ||
Other policyholders' benefits and funds held | 174.0 | 150.3 | ||
Commissions, expenses, fees, and taxes | 547.5 | 533.8 | ||
Reinsurance balances and funds held | 1,409.8 | 1,380.9 | ||
Federal income tax: Deferred | 129.1 | 105.6 | ||
Debt | 1,588.7 | 1,591.2 | ||
Other liabilities | 1,159.3 | 747.5 | ||
Total liabilities | 22,241.8 | 20,090.7 | ||
Shareholders' equity | 5,618.9 | 6,410.7 | ||
Total liabilities and shareholders' equity | $ 27,860.7 | $ 26,501.4 | ||
Composition of shareholders' equity per share: | ||||
Equity before items below | $ 19.65 | $ 20.51 | ||
Unrealized investment gains (losses) and other | ||||
accumulated comprehensive income (loss) | 3.19 | 2.80 | ||
Total | $ 22.84 | $ 23.31 | ||
Investments |
As of December 31, 2024, 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. As shown, these changes resulted mostly from net operating income, realized and unrealized investment gains (losses), and dividends to shareholders declared during the year.
Quarter | |||||||
Ended | |||||||
Dec. 31, | Years Ended Dec. 31, | ||||||
2024 | 2024 | 2023 | 2022 | ||||
Beginning balance | $ 25.71 | $ 23.31 | $ 21.07 | $ 22.77 | |||
Changes in shareholders' equity: | |||||||
Net income excluding net investment gains (losses) | 0.92 | 3.09 | 2.65 | 2.80 | |||
Net of tax realized investment gains (losses) | (0.08) | 0.27 | (0.19) | 0.17 | |||
Net of tax unrealized investment gains (losses): | |||||||
Fixed income securities | (0.86) | 0.12 | 1.31 | (2.18) | |||
Equity securities | (0.41) | (0.06) | (0.34) | (0.69) | |||
Total net of tax realized and unrealized | |||||||
investment gains (losses) | (1.35) | 0.33 | 0.78 | (2.70) | |||
Cash dividends declared | (2.265) | (3.060) | (0.980) | (1.920) | |||
Other - net | (0.18) | (0.83) | (0.21) | 0.12 | |||
Net change | (2.87) | (0.47) | 2.24 | (1.70) | |||
Ending balance | $ 22.84 | $ 22.84 | $ 23.31 | $ 21.07 | |||
Change for the period | (11.2) % | (2.0) % | 10.6 % | (7.5) % | |||
Change for the period, inclusive of cash dividends declared | (2.4) % | 11.1 % | 15.3 % | 0.9 % | |||
Total capital returned to shareholders during the quarter was
Managing Old Republic's Insurance Business for the Long-Run |
The insurance business is distinguished from most others in that the prices (premiums) charged for most products are set without knowing what the ultimate loss costs will be. We also can't know exactly when claims will be paid, which may be many years after a policy was issued or expired. This casts Old Republic as a risk-taking enterprise managed for the long run. Old Republic therefore conducts the business with a primary focus on achieving favorable underwriting results over cycles, and on maintaining a sound financial condition to support our insurance underwriting subsidiaries' obligations to policyholders and their beneficiaries.
The Company is managed for the long run and with little regard to quarterly or even annual reporting periods. These time frames are too short. Management believes results are best evaluated by looking at underwriting and overall operating performance trends over 10-year intervals. These likely include one or two economic and/or underwriting cycles. This provides enough time for these cycles to run their course, for premium rate changes and subsequent underwriting results to be reflected in financial statements, and for reserved loss costs to be quantified with greater certainty.
Financial Supplement:
- A financial supplement to this news release is available on the Company's website:
www.oldrepublic.com
About Old Republic
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 fourth quarter 2024 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 January 30, 2025 by dialing 1-800-770-2030, passcode 4060501, or by accessing it on Old Republic International's website.
Safe Harbor Statement
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.
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. With regard to Old Republic's Specialty Insurance segment, its results can be particularly affected by the level of market competition, which is typically a function of available capital and expected returns on such capital among competitors, the levels of investment yields and inflation rates, and periodic changes in claim frequency and severity patterns caused by natural disasters, weather conditions, accidents, illnesses, 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. Title Insurance 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 on temporary holdings of short-term investments, 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 2023 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 | ||
At Old Republic: | At Financial Relations Board: |
Craig R. Smiddy, President and CEO | Analysts/Investors: Joe Calabrese 212/827-3772 |
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SOURCE Old Republic International Corporation
FAQ
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