OLD REPUBLIC REPORTS RESULTS FOR THE SECOND QUARTER AND FIRST HALF 2024
Old Republic International (NYSE: ORI) reported results for Q2 and the first half of 2024. Q2 pretax income excluding investment gains was $253.8M, up 11.6% YoY, while H1 pretax income was $485.4M, up 7.8% YoY. Net income for Q2 was $91.8M, down from $155.5M YoY; H1 net income was $408.6M, up from $355.4M. Q2 net operating income per diluted share was $0.76, a 22.6% increase. General Insurance pretax operating income rose by 9.9% in Q2, while Title Insurance saw a 32.5% increase. Net premiums and fees earned grew by 9.0% in Q2. However, investment losses were substantial, with pretax investment losses of $140.5M. The combined ratio for Q2 was 93.5%, up from 92.6% YoY. Book value per share increased to $23.59. Despite some positive metrics, a significant decline in investment gains impacted overall profitability.
Old Republic International (NYSE: ORI) ha riportato i risultati per il Q2 e il primo semestre del 2024. Il reddito ante imposte del Q2, esclusi i guadagni da investimenti, è stato di 253,8 milioni di dollari, in aumento dell'11,6% rispetto all'anno precedente, mentre il reddito ante imposte per il primo semestre è stato di 485,4 milioni di dollari, in aumento del 7,8% rispetto all'anno precedente. L'utile netto per il Q2 è stato di 91,8 milioni di dollari, in calo rispetto ai 155,5 milioni dell'anno precedente; l'utile netto per il primo semestre è stato di 408,6 milioni di dollari, in aumento rispetto ai 355,4 milioni. L'utile operativo netto per azione diluita nel Q2 è stato di 0,76 dollari, con un incremento del 22,6%. L'utile ante imposte operativo della General Insurance è aumentato del 9,9% nel Q2, mentre l'assicurazione titoli ha visto un incremento del 32,5%. I premi netti e le commissioni guadagnati sono cresciuti del 9,0% nel Q2. Tuttavia, le perdite da investimenti sono state sostanziali, con perdite ante imposte da investimento pari a 140,5 milioni di dollari. Il rapporto combinato per il Q2 è stato del 93,5%, in aumento rispetto al 92,6% dell'anno precedente. Il valore contabile per azione è aumentato a 23,59 dollari. Nonostante alcuni indicatori positivi, un significativo calo dei guadagni da investimenti ha influito sulla redditività complessiva.
Old Republic International (NYSE: ORI) informó los resultados para el segundo trimestre y la primera mitad de 2024. El ingreso antes de impuestos del segundo trimestre, excluyendo las ganancias por inversiones, fue de 253,8 millones de dólares, un aumento del 11,6% interanual, mientras que el ingreso antes de impuestos de la primera mitad fue de 485,4 millones de dólares, un aumento del 7,8% interanual. El ingreso netto para el segundo trimestre fue de 91,8 millones de dólares, una disminución desde los 155,5 millones del año anterior; el ingreso netto para la primera mitad fue de 408,6 millones de dólares, un aumento desde los 355,4 millones. El ingreso operativo netto por acción diluida en el segundo trimestre fue de 0,76 dólares, un incremento del 22,6%. El ingreso operativo antes de impuestos de General Insurance aumentó un 9,9% en el segundo trimestre, mientras que el seguro de títulos vio un aumento del 32,5%. Las primas netas y comisiones obtenidas crecieron un 9,0% en el segundo trimestre. Sin embargo, las pérdidas de inversiones fueron sustanciales, con pérdidas antes de impuestos de inversión de 140,5 millones de dólares. La cifra combinada para el segundo trimestre fue del 93,5%, un aumento desde el 92,6% interanual. El valor contable por acción aumentó a 23,59 dólares. A pesar de algunos indicadores positivos, un declive significativo en las ganancias por inversiones afectó la rentabilidad general.
올드 리퍼블릭 인터내셔널(NYSE: ORI)은 2024년 2분기 및 상반기 결과를 보고했습니다. 2분기 투자 수익을 제외한 세전 소득은 2억 5,380만 달러로 지난해 대비 11.6% 증가했으며, 상반기 세전 소득은 4억 8,540만 달러로 7.8% 증가했습니다. 2분기 순이익은 9,180만 달러로 지난해 1억 5,550만 달러에서 하락했으며, 상반기 순이익은 4억 8,060만 달러로 지난해 3억 5,540만 달러에서 증가했습니다. 2분기 희석 주당 순운영 소득은 0.76달러로 22.6% 증가했습니다. 일반 보험의 세전 운영 소득은 2분기 동안 9.9% 증가했으며, 제목 보험은 32.5% 증가했습니다. 2분기 동안 최대 보험료와 수수료 수익은 9.0% 성장했습니다. 그러나 투자 손실은 상당하여 세전 투자 손실은 1억 4,050만 달러에 달했습니다. 2분기의 결합 비율은 93.5%로 지난해의 92.6%에서 증가했습니다. 주당 장부 가치는 23.59달러로 증가했습니다. 일부 긍정적인 지표에도 불구하고, 투자 수익의 큰 감소가 전체 수익성에 영향을 미쳤습니다.
Old Republic International (NYSE: ORI) a publié les résultats pour le deuxième trimestre et le premier semestre de 2024. Le bénéfice avant impôts du deuxième trimestre, hors gains d'investissement, s'élevait à 253,8 millions de dollars, en hausse de 11,6 % par rapport à l'année précédente, tandis que le bénéfice avant impôts pour le premier semestre était de 485,4 millions de dollars, en hausse de 7,8 % par rapport à l'année précédente. Le bénéfice net pour le deuxième trimestre s'élevait à 91,8 millions de dollars, en baisse par rapport à 155,5 millions de dollars l'année précédente ; le bénéfice net pour le premier semestre était de 408,6 millions de dollars, en hausse par rapport à 355,4 millions de dollars. Le bénéfice opérationnel net par action diluée pour le deuxième trimestre était de 0,76 dollar, une augmentation de 22,6 %. Le bénéfice opérationnel avant impôts de la General Insurance a augmenté de 9,9 % au deuxième trimestre, tandis que l'assurance titre a connu une augmentation de 32,5 %. Les primes nettes et les frais perçus ont augmenté de 9,0 % au deuxième trimestre. Toutefois, les pertes d'investissement ont été considérables, avec des pertes d'investissement avant impôts s'élevant à 140,5 millions de dollars. Le rapport combiné pour le deuxième trimestre était de 93,5 %, en hausse par rapport à 92,6 % l'année précédente. La valeur comptable par action a augmenté à 23,59 dollars. Malgré certains indicateurs positifs, une baisse significative des gains d'investissement a eu un impact sur la rentabilité globale.
Old Republic International (NYSE: ORI) hat die Ergebnisse für das zweite Quartal und die erste Jahreshälfte 2024 berichtet. Das Betriebsergebnis vor Steuern im zweiten Quartal, ohne Investitionsgewinne, betrug 253,8 Millionen US-Dollar, was einem Anstieg von 11,6% im Vergleich zum Vorjahr entspricht, während das Betriebsergebnis vor Steuern für das erste Halbjahr 485,4 Millionen US-Dollar betrug, ein Anstieg von 7,8% im Vergleich zum Vorjahr. Der Nettogewinn für das zweite Quartal betrug 91,8 Millionen US-Dollar, ein Rückgang gegenüber 155,5 Millionen US-Dollar im Vorjahr; der Nettogewinn für das erste Halbjahr betrug 408,6 Millionen US-Dollar, ein Anstieg gegenüber 355,4 Millionen US-Dollar. Der Nettobetriebsgewinn pro verwässerter Aktie betrug im zweiten Quartal 0,76 US-Dollar, ein Anstieg von 22,6%. Der Betriebsgewinn vor Steuern von General Insurance stieg im zweiten Quartal um 9,9%, während die Titelversicherung einen Anstieg von 32,5% verzeichnete. Die nettoprämien und Gebühren aus Erträgen stiegen im zweiten Quartal um 9,0%. Allerdings waren die Investitionsverluste erheblich, mit einem vorsteuerlichen Investitionsverlust von 140,5 Millionen US-Dollar. Die kombinierte Quote für das zweite Quartal betrug 93,5%, ein Anstieg von 92,6% im Vergleich zum Vorjahr. Der Buchwert pro Aktie stieg auf 23,59 US-Dollar. Trotz einiger positiver Kennzahlen hat ein erheblicher Rückgang der Investitionsgewinne die Gesamtrentabilität beeinträchtigt.
- Q2 pretax income excluding investment gains rose 11.6% YoY to $253.8M.
- H1 pretax income excluding investment gains increased by 7.8% to $485.4M.
- Net operating income per diluted share for Q2 rose 22.6% to $0.76.
- General Insurance pretax operating income increased by 9.9% in Q2.
- Title Insurance pretax operating income rose by 32.5% in Q2.
- Net premiums and fees earned grew by 9.0% in Q2.
- Net investment income increased by 20.1% in Q2.
- Book value per share increased to $23.59.
- Q2 net income declined to $91.8M from $155.5M YoY.
- Significant pretax investment losses of $140.5M in Q2.
- Combined ratio for Q2 increased to 93.5%, up from 92.6% YoY.
- Total shareholders' equity decreased by 6.0% to $6,026.6M since Dec. 2023.
Insights
OVERALL RESULTS | ||||||||||||
Quarters Ended June 30, | Six Months Ended June 30, | |||||||||||
2024 | 2023 | % Change | 2024 | 2023 | % Change | |||||||
Pretax income | $ 113.3 | $ 196.9 | $ 512.1 | $ 446.1 | ||||||||
Pretax investment gains (losses) | (140.5) | (30.4) | 26.6 | (4.2) | ||||||||
Pretax income excluding investment gains (losses) | $ 253.8 | $ 227.3 | 11.6 % | $ 485.4 | $ 450.3 | 7.8 % | ||||||
Net income | $ 91.8 | $ 155.5 | $ 408.6 | $ 355.4 | ||||||||
Net of tax investment gains (losses) | (110.6) | (24.0) | 21.4 | (3.3) | ||||||||
Net income excluding investment gains (losses) | $ 202.4 | $ 179.6 | 12.7 % | $ 387.2 | $ 358.8 | 7.9 % | ||||||
Combined ratio | 93.5 % | 92.6 % | 93.8 % | 92.6 % | ||||||||
PER DILUTED SHARE | ||||||||||||
Quarters Ended June 30, | Six Months Ended June 30, | |||||||||||
2024 | 2023 | % Change | 2024 | 2023 | % Change | |||||||
Net income | $ 0.35 | $ 0.54 | $ 1.51 | $ 1.22 | ||||||||
Net of tax investment gains (losses) | (0.41) | (0.08) | 0.08 | (0.01) | ||||||||
Net income excluding investment gains (losses) | $ 0.76 | $ 0.62 | 22.6 % | $ 1.43 | $ 1.23 | 16.3 % | ||||||
SHAREHOLDERS' EQUITY (BOOK VALUE) | ||||||||||||
June 30, | Dec. 31, | |||||||||||
2024 | 2023 | % Change | ||||||||||
Total | $ 6,026.6 | $ 6,410.7 | (6.0) % | |||||||||
Per Common Share | $ 23.59 | $ 23.31 | 1.2 % | |||||||||
________ |
All amounts in this report are stated in millions except where noted, common stock data, and percentages. |
Old Republic International Corporation (NYSE: ORI) today reported pretax income, excluding investment gains (losses) (pretax operating income), of
Summary of results for the quarter:
- Net operating income per diluted share of
$0.76 22.6% over last year. - Consolidated net premiums and fees earned increased
9.0% , from growth in both the General and Title Insurance segments. - Net investment income increased
20.1% , driven by higher investment yields. - Consolidated combined ratio of
93.5% , up 0.9 points over last year, reflecting more normalized levels of favorable loss reserve development. - Favorable loss reserve development of 2.2 points, compared to 4.6 points last year.
- Total capital returned to shareholders during the quarter of
$479 $410 - Book value per share of
$23.59 3.5% since year-end 2023, inclusive of dividends.
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 segment pretax 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 June 30, | Six Months Ended June 30, | |||||||||||
SUMMARY INCOME STATEMENTS: | 2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||
Revenues: | ||||||||||||
Net premiums and fees earned | $ 1,797.4 | $ 1,648.7 | 9.0 % | $ 3,440.1 | $ 3,203.9 | 7.4 % | ||||||
Net investment income | 167.4 | 139.4 | 20.1 | 331.6 | 277.2 | 19.6 | ||||||
Other income | 47.3 | 40.6 | 16.5 | 89.2 | 80.1 | 11.4 | ||||||
Total operating revenues | 2,012.2 | 1,828.8 | 10.0 | 3,861.0 | 3,561.3 | 8.4 | ||||||
Investment gains (losses): | ||||||||||||
Realized from actual transactions and | (54.1) | 2.1 | 126.2 | 30.3 | ||||||||
Unrealized from changes in fair value of equity | (86.3) | (32.6) | (99.6) | (34.6) | ||||||||
Total investment gains (losses) | (140.5) | (30.4) | 26.6 | (4.2) | ||||||||
Total revenues | 1,871.7 | 1,798.3 | 3,887.6 | 3,557.0 | ||||||||
Operating expenses: | ||||||||||||
Loss and loss adjustment expenses | 741.5 | 617.8 | 20.0 | 1,439.0 | 1,221.7 | 17.8 | ||||||
Sales and general expenses | 994.5 | 962.9 | 3.3 | 1,897.8 | 1,851.5 | 2.5 | ||||||
Interest and other expenses | 22.2 | 20.7 | 7.5 | 38.7 | 37.6 | 2.9 | ||||||
Total operating expenses | 1,758.3 | 1,601.4 | 9.8 % | 3,375.5 | 3,110.9 | 8.5 % | ||||||
Pretax income | 113.3 | 196.9 | 512.1 | 446.1 | ||||||||
Income taxes | 21.4 | 41.3 | 103.4 | 90.6 | ||||||||
Net income | $ 91.8 | $ 155.5 | $ 408.6 | $ 355.4 | ||||||||
COMMON STOCK STATISTICS: | ||||||||||||
Components of net income per share: | ||||||||||||
Basic net income excluding investment gains | $ 0.77 | $ 0.63 | 22.2 % | $ 1.45 | $ 1.24 | 16.9 % | ||||||
Net investment gains (losses): | ||||||||||||
Realized investment gains (losses) | (0.16) | 0.01 | 0.38 | 0.08 | ||||||||
Unrealized from changes in fair value of equity | (0.26) | (0.09) | (0.30) | (0.09) | ||||||||
Basic net income | $ 0.35 | $ 0.55 | $ 1.53 | $ 1.23 | ||||||||
Diluted net income excluding investment | $ 0.76 | $ 0.62 | 22.6 % | $ 1.43 | $ 1.23 | 16.3 % | ||||||
Net investment gains (losses): | ||||||||||||
Realized investment gains (losses) | (0.16) | 0.01 | 0.37 | 0.08 | ||||||||
Unrealized from changes in fair value of equity | (0.25) | (0.09) | (0.29) | (0.09) | ||||||||
Diluted net income | $ 0.35 | $ 0.54 | $ 1.51 | $ 1.22 | ||||||||
Cash dividends on common stock | $ 0.265 | $ 0.245 | $ 0.530 | $ 0.490 | ||||||||
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.
The results of the Republic Financial Indemnity Group (RFIG) Run-off business, previously a reportable segment, are deemed immaterial, and are included within Corporate & Other through the date of its sale of May 31, 2024. Prior period amounts have been reclassified to reflect this change in reportable segments.
Sources of Consolidated Income | |||||||||||
Quarters Ended June 30, | Six Months Ended June 30, | ||||||||||
2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||
Net premiums and fees earned: | |||||||||||
General Insurance | $ 992.8 | 13.8 % | 13.4 % | ||||||||
Title Insurance | 663.4 | 649.6 | 2.1 | 1,208.8 | 1,232.9 | (2.0) | |||||
Corporate & Other | 4.3 | 6.2 | (30.0) | 9.9 | 13.0 | (23.9) | |||||
Consolidated | 9.0 % | 7.4 % | |||||||||
Underwriting and related services income (loss): | |||||||||||
General Insurance | $ 85.1 | $ 97.0 | (12.3) % | $ 190.9 | $ 200.9 | (5.0) % | |||||
Title Insurance | 30.2 | 20.0 | 50.8 | 16.7 | 23.7 | (29.6) | |||||
Corporate & Other | (6.6) | (8.4) | 21.2 | (15.1) | (13.9) | (8.3) | |||||
Consolidated | $ 108.6 | $ 108.6 | — % | $ 192.5 | $ 210.7 | (8.7) % | |||||
Consolidated combined ratio: | |||||||||||
Loss ratio: | |||||||||||
Current year | 43.5 % | 42.1 % | 44.1 % | 42.6 % | |||||||
Prior years | (2.2) | (4.6) | (2.3) | (4.5) | |||||||
Total | 41.3 | 37.5 | 41.8 | 38.1 | |||||||
Expense ratio | 52.2 | 55.1 | 52.0 | 54.5 | |||||||
Combined ratio | 93.5 % | 92.6 % | 93.8 % | 92.6 % | |||||||
Net investment income: | |||||||||||
General Insurance | $ 132.9 | $ 111.4 | 19.3 % | $ 264.0 | $ 220.1 | 19.9 % | |||||
Title Insurance | 15.5 | 14.1 | 9.2 | 31.2 | 27.9 | 11.7 | |||||
Corporate & Other | 19.0 | 13.8 | 37.9 | 36.4 | 29.1 | 25.1 | |||||
Consolidated | $ 167.4 | $ 139.4 | 20.1 % | $ 331.6 | $ 277.2 | 19.6 % | |||||
Interest and other expenses (income): | |||||||||||
General Insurance | $ 15.4 | $ 24.2 | $ 31.9 | $ 43.6 | |||||||
Title Insurance | (0.3) | (0.5) | (0.4) | (0.4) | |||||||
Corporate & Other (a) | 7.0 | (3.0) | 7.2 | (5.5) | |||||||
Consolidated | $ 22.2 | $ 20.7 | 7.5 % | $ 38.7 | $ 37.6 | 2.9 % | |||||
Pretax income excluding investment gains (losses): | |||||||||||
General Insurance | $ 202.5 | $ 184.2 | 9.9 % | $ 422.9 | $ 377.5 | 12.0 % | |||||
Title Insurance | 46.0 | 34.7 | 32.5 | 48.4 | 52.1 | (7.2) | |||||
Corporate & Other | 5.2 | 8.3 | (37.0) | 14.0 | 20.6 | (32.0) | |||||
Consolidated | 253.8 | 227.3 | 11.6 % | 485.4 | 450.3 | 7.8 % | |||||
Income taxes | 51.3 | 47.7 | 98.2 | 91.5 | |||||||
Net income excluding investment | |||||||||||
gains (losses) | 202.4 | 179.6 | 12.7 % | 387.2 | 358.8 | 7.9 % | |||||
Consolidated pretax investment gains (losses): | |||||||||||
Realized from actual transactions | |||||||||||
and impairments | (54.1) | 2.1 | 126.2 | 30.3 | |||||||
Unrealized from changes in | |||||||||||
fair value of equity securities | (86.3) | (32.6) | (99.6) | (34.6) | |||||||
Total | (140.5) | (30.4) | 26.6 | (4.2) | |||||||
Income taxes (credits) | (29.9) | (6.4) | 5.2 | (0.8) | |||||||
Net of tax investment gains (losses) | (110.6) | (24.0) | 21.4 | (3.3) | |||||||
Net income | $ 91.8 | $ 155.5 | $ 408.6 | $ 355.4 | |||||||
(a) Includes consolidation/elimination entries. |
General Insurance Segment Operating Results |
Quarters Ended June 30, | Six Months Ended June 30, | ||||||||||
2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||
Net premiums written | 15.4 % | 14.8 % | |||||||||
Net premiums earned | 1,129.6 | 992.8 | 13.8 | 2,221.3 | 1,958.0 | 13.4 | |||||
Net investment income | 132.9 | 111.4 | 19.3 | 264.0 | 220.1 | 19.9 | |||||
Other income | 47.0 | 40.4 | 16.4 | 88.8 | 79.7 | 11.4 | |||||
Operating revenues | 1,309.6 | 1,144.7 | 14.4 | 2,574.1 | 2,257.9 | 14.0 | |||||
Loss and loss adjustment expenses | 726.5 | 604.5 | 20.2 | 1,410.8 | 1,196.9 | 17.9 | |||||
Sales and general expenses | 364.9 | 331.6 | 10.0 | 708.3 | 639.8 | 10.7 | |||||
Interest and other expenses | 15.4 | 24.2 | (36.1) | 31.9 | 43.6 | (26.7) | |||||
Operating expenses | 1,107.0 | 960.4 | 15.3 | 2,151.2 | 1,880.4 | 14.4 | |||||
Segment pretax operating income | $ 202.5 | $ 184.2 | 9.9 % | $ 422.9 | $ 377.5 | 12.0 % | |||||
Loss ratio: | |||||||||||
Current year | 66.8 % | 66.9 % | 66.0 % | 66.9 % | |||||||
Prior years | (2.5) | (6.0) | (2.5) | (5.8) | |||||||
Total | 64.3 | 60.9 | 63.5 | 61.1 | |||||||
Expense ratio | 28.1 | 29.3 | 27.9 | 28.6 | |||||||
Combined ratio | 92.4 % | 90.2 % | 91.4 % | 89.7 % | |||||||
General Insurance net premiums earned increased
The net investment income increase of nearly
The loss ratios for General Insurance were within expectations in all periods presented. The changes from the prior periods reflect expected lower levels of favorable prior year loss reserve development. A significant amount of favorable development came from workers' compensation, partially offset by a much lower amount of unfavorable development within general liability, as reflected in each line's loss ratios. The expense ratios benefited from scale, partially offset by investments in new businesses and information technology, in addition to shifts in the line of coverage mix compared to last year.
Together, these factors produced highly profitable combined ratios and strong pretax operating income for the quarter. For General Insurance, we target combined ratios between
Title Insurance Segment Operating Results |
Quarters Ended June 30, | Six Months Ended June 30, | ||||||||||
2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||
Net premiums and fees earned | $ 663.4 | $ 649.6 | 2.1 % | (2.0) % | |||||||
Net investment income | 15.5 | 14.1 | 9.2 | 31.2 | 27.9 | 11.7 | |||||
Other income | 0.3 | 0.2 | N/M | 0.4 | 0.3 | N/M | |||||
Operating revenues | 679.2 | 664.0 | 2.3 | 1,240.5 | 1,261.2 | (1.6) | |||||
Loss and loss adjustment expenses | 15.3 | 16.2 | (5.9) | 27.4 | 31.6 | (13.3) | |||||
Sales and general expenses | 618.2 | 613.5 | 0.8 | 1,165.1 | 1,177.8 | (1.1) | |||||
Interest and other expenses (income) | (0.3) | (0.5) | N/M | (0.4) | (0.4) | N/M | |||||
Operating expenses | 633.2 | 629.3 | 0.6 | 1,192.1 | 1,209.0 | (1.4) | |||||
Segment pretax operating income | $ 46.0 | $ 34.7 | 32.5 % | $ 48.4 | $ 52.1 | (7.2) % | |||||
Loss ratio: | |||||||||||
Current year | 3.5 % | 3.8 % | 3.5 % | 3.8 % | |||||||
Prior years | (1.2) | (1.3) | (1.2) | (1.2) | |||||||
Total | 2.3 | 2.5 | 2.3 | 2.6 | |||||||
Expense ratio | 93.1 | 94.4 | 96.3 | 95.5 | |||||||
Combined ratio | 95.4 % | 96.9 % | 98.6 % | 98.1 % | |||||||
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 and an improvement in the current year loss ratio driven by favorable claim trends.
Sales and general expenses for the first six month of 2023 were impacted by the recovery of a
Together, these factors produced higher pretax operating income for the quarter and lower pretax operating income for the first six months.
Corporate & Other Operating Results |
Quarters Ended June 30, | Six Months Ended June 30, | |||||||||||
2024 | 2023 | % Change | 2024 | 2023 | % Change | |||||||
Net premiums earned | $ 4.3 | $ 6.2 | (30.0) % | $ 9.9 | $ 13.0 | (23.9) % | ||||||
Net investment income | 19.0 | 13.8 | 37.9 | 36.4 | 29.1 | 25.1 | ||||||
Operating revenues | 23.3 | 20.0 | 16.7 | 46.2 | 42.1 | 9.7 | ||||||
Benefits, loss and loss adjustment expenses | (0.3) | (2.9) | 89.7 | 0.6 | (6.8) | 110.1 | ||||||
Insurance expenses | 2.5 | 3.7 | (33.3) | 5.7 | 8.5 | (32.3) | ||||||
Corporate, interest, and other expenses - net | 15.8 | 10.8 | 46.2 | 25.7 | 19.7 | 30.2 | ||||||
Operating expenses | 18.1 | 11.6 | 55.1 | 32.2 | 21.4 | 49.9 | ||||||
Corporate & Other pretax operating income | $ 5.2 | $ 8.3 | (37.0) % | $ 14.0 | $ 20.6 | (32.0) % | ||||||
Corporate & Other includes a small life and accident insurance business, the RFIG Run-off business through the date of 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. Net investment income increased in both periods due primarily to higher investment yields earned. The invested asset base was higher in the quarter, due to the issuance of
Summary Consolidated Balance Sheet | ||||||
June 30, | December 31, | |||||
2024 | 2023 | |||||
Assets: | ||||||
Cash and fixed income securities | $ 13,695.4 | $ 13,375.4 | ||||
Equity securities | 2,462.6 | 2,660.8 | ||||
Other | 162.6 | 151.3 | ||||
Total investments, cash, and accrued investment income | 16,320.7 | 16,187.6 | ||||
Accounts and notes receivable | 2,626.0 | 2,201.4 | ||||
Federal income tax assets | 35.4 | 21.8 | ||||
Reinsurance recoverable | 6,584.8 | 5,951.4 | ||||
Deferred policy acquisition costs | 456.5 | 417.8 | ||||
Other assets | 1,501.5 | 1,721.2 | ||||
Total assets | $ 27,525.2 | $ 26,501.4 | ||||
Liabilities and Shareholders' Equity: | ||||||
Loss and loss adjustment expense reserves | $ 12,957.6 | $ 12,538.2 | ||||
Other policy liabilities | 3,710.6 | 3,193.1 | ||||
Federal income tax liabilities | 88.3 | 105.6 | ||||
Reinsurance balances and funds held | 1,670.0 | 1,380.9 | ||||
Debt | 1,987.9 | 1,591.2 | ||||
Other liabilities | 1,083.9 | 1,281.4 | ||||
Total liabilities | 21,498.6 | 20,090.7 | ||||
Shareholders' equity | 6,026.6 | 6,410.7 | ||||
Total liabilities and shareholders' equity | $ 27,525.2 | $ 26,501.4 | ||||
Composition of shareholders' equity per share: | ||||||
Equity before items below | $ 21.14 | $ 20.51 | ||||
Unrealized investment gains (losses) and other | ||||||
accumulated comprehensive income (loss) | 2.45 | 2.80 | ||||
Total | $ 23.59 | $ 23.31 | ||||
Investments |
As of June 30, 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 whose values are 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 dividend payments to shareholders.
Quarter | Year | ||||||
Ended | Ended | ||||||
June 30, | Six Months Ended June 30, | Dec. 31, | |||||
2024 | 2024 | 2023 | 2023 | ||||
Beginning balance | $ 23.83 | $ 23.31 | $ 21.07 | $ 21.07 | |||
Changes in shareholders' equity: | |||||||
Net income excluding net investment gains (losses) | 0.77 | 1.45 | 1.24 | 2.65 | |||
Net of tax realized investment gains (losses) | (0.16) | 0.38 | 0.08 | (0.19) | |||
Net of tax unrealized investment gains (losses): | |||||||
Fixed income securities | 0.04 | (0.22) | 0.15 | 1.31 | |||
Equity securities | (0.26) | (0.30) | (0.09) | (0.34) | |||
Total net of tax realized and unrealized | |||||||
investment gains (losses) | (0.38) | (0.14) | 0.14 | 0.78 | |||
Cash dividends | (0.265) | (0.530) | (0.490) | (0.980) | |||
Other - net | (0.36) | (0.50) | (0.18) | (0.21) | |||
Net change | (0.24) | 0.28 | 0.71 | 2.24 | |||
Ending balance | $ 23.59 | $ 23.59 | $ 21.78 | $ 23.31 | |||
Percentage change for the period | (1.0) % | 1.2 % | 3.4 % | 10.6 % | |||
Percentage change for the period, inclusive of cash dividends | 0.1 % | 3.5 % | 5.7 % | 15.3 % | |||
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 second 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 August 1, 2024 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 General 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 | |
View original content:https://www.prnewswire.com/news-releases/old-republic-reports-results-for-the-second-quarter-and-first-half-2024-302206044.html
SOURCE Old Republic International Corporation
FAQ
What were Old Republic's Q2 2024 pretax income results excluding investment gains?
How did Old Republic's net income perform in Q2 2024?
What was the net operating income per diluted share for Old Republic in Q2 2024?
How did Old Republic's General Insurance segment perform in Q2 2024?
What was the combined ratio for Old Republic in Q2 2024?
How did Old Republic's book value per share change by June 2024?
What were Old Republic's investment losses in Q2 2024?
