OLD REPUBLIC REPORTS RESULTS FOR THE THIRD QUARTER AND FIRST NINE MONTHS OF 2024
Old Republic International (NYSE: ORI) reported Q3 2024 results with pretax income of $426.9 million, up significantly from $63.9 million in Q3 2023. Net income was $338.9 million ($1.32 per diluted share) compared to $52.6 million ($0.19) last year. Excluding investment gains/losses, net operating income was $182.7 million ($0.71 per share) vs $200.2 million ($0.72) in Q3 2023.
Key highlights include: consolidated net premiums and fees earned increased 9.6%, net investment income rose 17.3%, and the combined ratio was 95.0%. Book value per share reached $25.71, up 13.7% year-to-date. The company returned $232 million to shareholders through dividends and share repurchases during the quarter.
Old Republic International (NYSE: ORI) ha riportato i risultati del terzo trimestre 2024 con un reddito ante imposte di 426,9 milioni di dollari, in netto aumento rispetto ai 63,9 milioni di dollari del terzo trimestre 2023. Il reddito netto è stato di 338,9 milioni di dollari (1,32 dollari per azione diluita) rispetto ai 52,6 milioni di dollari (0,19 dollari) dell'anno scorso. Escludendo guadagni/perdite sugli investimenti, il reddito operativo netto è stato di 182,7 milioni di dollari (0,71 dollari per azione) rispetto ai 200,2 milioni di dollari (0,72 dollari) nel terzo trimestre 2023.
I punti salienti includono: un incremento del 9,6% nei premi e nelle commissioni netti consolidati, un aumento del 17,3% nel reddito da investimenti netti e un rapporto combinato del 95,0%. Il valore contabile per azione ha raggiunto 25,71 dollari, con un aumento del 13,7% dall'inizio dell'anno. L'azienda ha restituito 232 milioni di dollari agli azionisti attraverso dividendi e riacquisti di azioni durante il trimestre.
Old Republic International (NYSE: ORI) reportó los resultados del tercer trimestre de 2024 con un ingreso antes de impuestos de 426,9 millones de dólares, un aumento significativo desde los 63,9 millones de dólares en el tercer trimestre de 2023. El ingreso neto fue de 338,9 millones de dólares (1,32 dólares por acción diluida) en comparación con los 52,6 millones de dólares (0,19) del año pasado. Excluyendo las ganancias/pérdidas de inversiones, el ingreso operativo neto fue de 182,7 millones de dólares (0,71 dólares por acción) frente a los 200,2 millones de dólares (0,72) en el tercer trimestre de 2023.
Los puntos destacados incluyen: un aumento del 9,6% en las primas y tarifas netas consolidadas, un incremento del 17,3% en los ingresos por inversiones netas, y un ratio combinado del 95,0%. El valor contable por acción alcanzó 25,71 dólares, un aumento del 13,7% en lo que va del año. La empresa devolvió 232 millones de dólares a los accionistas a través de dividendos y recompra de acciones durante el trimestre.
올드 리퍼블릭 인터내셔널 (NYSE: ORI)은 2024년 3분기 실적을 보고하며 세전 수익이 4억 2,690만 달러로 2023년 3분기의 6,390만 달러에서 크게 증가했다고 발표했습니다. 순수익은 3억 3,890만 달러 (희석 주당 1.32달러)로 작년의 5,260만 달러 (0.19달러)와 비교됩니다. 투자 손익을 제외할 경우, 순운영수익은 1억 8,270만 달러 (주당 0.71달러)로 2023년 3분기의 2억 2,200만 달러 (0.72달러)에 비해 감소했습니다.
주요 하이라이트로는 통합 순보험료 및 수수료가 9.6% 증가했습니다, 순투자 수익이 17.3% 증가했고, 결합 비율은 95.0%로 나타났습니다. 주당 장부 가치는 25.71달러로 전년 대비 13.7% 증가했습니다. 회사는 분기 중 배당금 및 자사주 매입을 통해 주주에게 2억 3,200만 달러를 반환했습니다.
Old Republic International (NYSE: ORI) a publié les résultats du troisième trimestre 2024 avec un revenu avant impôts de 426,9 millions de dollars, en forte augmentation par rapport à 63,9 millions de dollars au troisième trimestre 2023. Le revenu net s'est établi à 338,9 millions de dollars (1,32 dollar par action diluée) contre 52,6 millions de dollars (0,19 dollar) l'année précédente. En excluant les gains/pertes d'investissement, le revenu d'exploitation net était de 182,7 millions de dollars (0,71 dollar par action) contre 200,2 millions de dollars (0,72 dollar) au troisième trimestre 2023.
Les principaux points forts comprennent : une augmentation de 9,6% des primes nettes et des frais consolidés, une hausse de 17,3% du revenu net d'investissement et un ratio combiné de 95,0%. La valeur comptable par action a atteint 25,71 dollars, en hausse de 13,7% depuis le début de l'année. L'entreprise a restitué 232 millions de dollars aux actionnaires par le biais de dividendes et de rachats d'actions au cours du trimestre.
Old Republic International (NYSE: ORI) berichtete über die Ergebnisse des 3. Quartals 2024 mit einem Vorsteuergewinn von 426,9 Millionen Dollar, was einen erheblichen Anstieg im Vergleich zu 63,9 Millionen Dollar im 3. Quartal 2023 darstellt. Der Nettogewinn betrug 338,9 Millionen Dollar (1,32 Dollar pro verwässerter Aktie) im Vergleich zu 52,6 Millionen Dollar (0,19 Dollar) im vergangenen Jahr. Ohne Berücksichtigung von Investitionsergebnissen/-verlusten betrug der Nettobetriebsgewinn 182,7 Millionen Dollar (0,71 Dollar pro Aktie) gegenüber 200,2 Millionen Dollar (0,72 Dollar) im 3. Quartal 2023.
Wichtige Highlights sind: Die konsolidierten Nettobeiträge und Gebühren stiegen um 9,6%, die Nettovorsorge steigerte sich um 17,3%, und die kombinierte Quote betrug 95,0%. Der Buchwert pro Aktie erreichte 25,71 Dollar, ein Anstieg um 13,7% seit Jahresbeginn. Das Unternehmen gab 232 Millionen Dollar an die Aktionäre durch Dividenden und Aktienrückkäufe im Quartal zurück.
- Net premiums and fees earned increased 9.6% to $1.93 billion
- Net investment income rose 17.3% to $171 million
- Book value per share increased 13.7% YTD to $25.71
- Strong capital return with $232 million returned to shareholders in Q3
- Net operating income declined 8.7% to $182.7 million
- Combined ratio deteriorated to 95.0% from 91.9% last year
- General Insurance pretax operating income decreased 8.5%
Insights
Old Republic (ORI) posted a solid Q3 2024 with mixed results. Net income increased significantly to
The General Insurance segment saw strong premium growth of
Investment performance was strong with net investment income up
While core insurance operations remain solid with a
The results highlight ORI's disciplined underwriting approach and strong market position. The General Insurance combined ratio of
Premium rate increases in commercial auto, property and liability lines offset softness in D&O and workers' comp, showing ability to navigate market cycles. The Title segment's resilience despite higher rates is notable, with commercial premiums now
The investment portfolio's conservative positioning with
OVERALL RESULTS | ||||||||||||
Quarters Ended September 30, | Nine Months Ended September 30, | |||||||||||
2024 | 2023 | % Change | 2024 | 2023 | % Change | |||||||
Pretax income | $ 426.9 | $ 63.9 | $ 939.0 | $ 510.0 | ||||||||
Pretax investment gains (losses) | 197.7 | (186.9) | 224.3 | (191.1) | ||||||||
Pretax income excluding investment gains (losses) | $ 229.2 | $ 250.8 | (8.6) % | $ 714.7 | $ 701.2 | 1.9 % | ||||||
Net income | $ 338.9 | $ 52.6 | $ 747.6 | $ 408.0 | ||||||||
Net of tax investment gains (losses) | 156.1 | (147.6) | 177.6 | (151.0) | ||||||||
Net income excluding investment gains (losses) | $ 182.7 | $ 200.2 | (8.7) % | $ 570.0 | $ 559.0 | 2.0 % | ||||||
Combined ratio | 95.0 % | 91.9 % | 94.3 % | 92.4 % | ||||||||
PER DILUTED SHARE | ||||||||||||
Quarters Ended September 30, | Nine Months Ended September 30, | |||||||||||
2024 | 2023 | % Change | 2024 | 2023 | % Change | |||||||
Net income | $ 1.32 | $ 0.19 | $ 2.81 | $ 1.42 | ||||||||
Net of tax investment gains (losses) | 0.61 | (0.53) | 0.67 | (0.53) | ||||||||
Net income excluding investment gains (losses) | $ 0.71 | $ 0.72 | (1.4) % | $ 2.14 | $ 1.95 | 9.7 % | ||||||
SHAREHOLDERS' EQUITY (BOOK VALUE) | ||||||||||||
Sep. 30, | Dec. 31, | |||||||||||
2024 | 2023 | % Change | ||||||||||
Total | $ 6,445.3 | $ 6,410.7 | 0.5 % | |||||||||
Per Common Share | $ 25.71 | $ 23.31 | 10.3 % | |||||||||
________ |
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
Summarized results for the quarter follow:
- Net operating income per diluted share of
$0.71 $0.72 - Consolidated net premiums and fees earned increased
9.6% , from strong growth in General Insurance and moderate growth in Title Insurance. - Net investment income increased
17.3% , driven by higher investment yields. - Consolidated combined ratio of
95.0% , up 3.1 points over last year, reflecting lower levels of favorable loss reserve development. - Favorable loss reserve development of 1.3 points, compared to last year's historically high level of 4.5 points.
- Total capital returned to shareholders during the quarter of
$232 $165 - Book value per share of
$25.71 13.7% since year-end 2023, inclusive of dividends, driven by operating income and increased investment valuations.
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 September 30, | Nine Months Ended September 30, | |||||||||||
SUMMARY INCOME STATEMENTS: | 2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||
Revenues: | ||||||||||||
Net premiums and fees earned | $ 1,929.2 | $ 1,760.1 | 9.6 % | $ 5,369.3 | $ 4,964.1 | 8.2 % | ||||||
Net investment income | 171.0 | 145.9 | 17.3 | 502.7 | 423.1 | 18.8 | ||||||
Other income | 43.7 | 40.9 | 6.9 | 133.0 | 121.0 | 9.9 | ||||||
Total operating revenues | 2,144.0 | 1,947.0 | 10.1 | 6,005.1 | 5,508.4 | 9.0 | ||||||
Investment gains (losses): | ||||||||||||
Realized from actual transactions and | (13.1) | (43.5) | 113.1 | (13.1) | ||||||||
Unrealized from changes in fair value of equity | 210.8 | (143.3) | 111.1 | (178.0) | ||||||||
Total investment gains (losses) | 197.7 | (186.9) | 224.3 | (191.1) | ||||||||
Total revenues | 2,341.7 | 1,760.1 | 6,229.4 | 5,317.2 | ||||||||
Operating expenses: | ||||||||||||
Loss and loss adjustment expenses | 816.0 | 663.4 | 23.0 | 2,255.0 | 1,885.2 | 19.6 | ||||||
Sales and general expenses | 1,077.4 | 1,016.3 | 6.0 | 2,975.2 | 2,867.9 | 3.7 | ||||||
Interest and other expenses | 21.3 | 16.4 | 29.9 | 60.0 | 54.0 | 11.1 | ||||||
Total operating expenses | 1,914.8 | 1,696.2 | 12.9 % | 5,290.4 | 4,807.2 | 10.1 % | ||||||
Pretax income | 426.9 | 63.9 | 939.0 | 510.0 | ||||||||
Income taxes | 88.0 | 11.3 | 191.4 | 102.0 | ||||||||
Net income | $ 338.9 | $ 52.6 | $ 747.6 | $ 408.0 | ||||||||
COMMON STOCK STATISTICS: | ||||||||||||
Components of net income per share: | ||||||||||||
Basic net income excluding investment gains | $ 0.73 | $ 0.72 | 1.4 % | $ 2.18 | $ 1.96 | 11.2 % | ||||||
Net investment gains (losses): | ||||||||||||
Realized investment gains (losses) | (0.04) | (0.12) | 0.34 | (0.04) | ||||||||
Unrealized from changes in fair value of equity | 0.66 | (0.41) | 0.34 | (0.49) | ||||||||
Basic net income | $ 1.35 | $ 0.19 | $ 2.86 | $ 1.43 | ||||||||
Diluted net income excluding investment | $ 0.71 | $ 0.72 | (1.4) % | $ 2.14 | $ 1.95 | 9.7 % | ||||||
Net investment gains (losses): | ||||||||||||
Realized investment gains (losses) | (0.04) | (0.12) | 0.34 | (0.04) | ||||||||
Unrealized from changes in fair value of equity | 0.65 | (0.41) | 0.33 | (0.49) | ||||||||
Diluted net income | $ 1.32 | $ 0.19 | $ 2.81 | $ 1.42 | ||||||||
Cash dividends on common stock | $ 0.265 | $ 0.245 | $ 0.795 | $ 0.735 | ||||||||
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 September 30, | Nine Months Ended September 30, | ||||||||||
2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||
Net premiums and fees earned: | |||||||||||
General Insurance | 13.9 % | 13.6 % | |||||||||
Title Insurance | 708.5 | 684.4 | 3.5 | 1,917.4 | 1,917.3 | — | |||||
Corporate & Other | 2.1 | 6.0 | (65.0) | 12.0 | 19.1 | (37.0) | |||||
Consolidated | 9.6 % | 8.2 % | |||||||||
Underwriting and related services income (loss): | |||||||||||
General Insurance | $ 72.1 | $ 117.5 | (38.6) % | $ 263.1 | $ 318.5 | (17.4) % | |||||
Title Insurance | 23.8 | 22.9 | 4.0 | 40.6 | 46.7 | (13.1) | |||||
Corporate & Other | (16.5) | (19.1) | 13.7 | (31.6) | (33.1) | 4.5 | |||||
Consolidated | $ 79.4 | $ 121.3 | (34.5) % | $ 272.0 | $ 332.1 | (18.1) % | |||||
Consolidated combined ratio: | |||||||||||
Loss ratio: | |||||||||||
Current year | 43.6 % | 42.2 % | 43.9 % | 42.5 % | |||||||
Prior years | (1.3) | (4.5) | (1.9) | (4.5) | |||||||
Total | 42.3 | 37.7 | 42.0 | 38.0 | |||||||
Expense ratio | 52.7 | 54.2 | 52.3 | 54.4 | |||||||
Combined ratio | 95.0 % | 91.9 % | 94.3 % | 92.4 % | |||||||
Net investment income: | |||||||||||
General Insurance | $ 139.9 | $ 117.9 | 18.7 % | $ 403.9 | $ 338.1 | 19.5 % | |||||
Title Insurance | 15.9 | 14.1 | 12.6 | 47.1 | 42.1 | 12.0 | |||||
Corporate & Other | 15.2 | 13.8 | 9.8 | 51.6 | 42.9 | 20.1 | |||||
Consolidated | $ 171.0 | $ 145.9 | 17.3 % | $ 502.7 | $ 423.1 | 18.8 % | |||||
Interest and other expenses (income): | |||||||||||
General Insurance | $ 14.7 | $ 19.9 | $ 46.7 | $ 63.6 | |||||||
Title Insurance | (0.4) | (0.3) | (0.9) | (0.8) | |||||||
Corporate & Other (a) | 6.9 | (3.1) | 14.1 | (8.7) | |||||||
Consolidated | $ 21.3 | $ 16.4 | 29.9 % | $ 60.0 | $ 54.0 | 11.1 % | |||||
Pretax income excluding investment gains (losses): | |||||||||||
General Insurance | $ 197.3 | $ 215.5 | (8.5) % | $ 620.3 | $ 593.0 | 4.6 % | |||||
Title Insurance | 40.2 | 37.4 | 7.5 | 88.6 | 89.6 | (1.1) | |||||
Corporate & Other | (8.3) | (2.1) | N/M | 5.7 | 18.5 | (68.9) | |||||
Consolidated | 229.2 | 250.8 | (8.6) % | 714.7 | 701.2 | 1.9 % | |||||
Income taxes | 46.4 | 50.6 | 144.7 | 142.1 | |||||||
Net income excluding investment | |||||||||||
gains (losses) | 182.7 | 200.2 | (8.7) % | 570.0 | 559.0 | 2.0 % | |||||
Consolidated pretax investment gains (losses): | |||||||||||
Realized from actual transactions | |||||||||||
and impairments | (13.1) | (43.5) | 113.1 | (13.1) | |||||||
Unrealized from changes in | |||||||||||
fair value of equity securities | 210.8 | (143.3) | 111.1 | (178.0) | |||||||
Total | 197.7 | (186.9) | 224.3 | (191.1) | |||||||
Income taxes (credits) | 41.5 | (39.2) | 46.7 | (40.1) | |||||||
Net of tax investment gains (losses) | 156.1 | (147.6) | 177.6 | (151.0) | |||||||
Net income | $ 338.9 | $ 52.6 | $ 747.6 | $ 408.0 | |||||||
(a) Includes consolidation/elimination entries. |
General Insurance Segment Operating Results | |||||||||||
Quarters Ended September 30, | Nine Months Ended September 30, | ||||||||||
2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||
Net premiums written | 16.1 % | 15.2 % | |||||||||
Net premiums earned | 1,218.5 | 1,069.6 | 13.9 | 3,439.8 | 3,027.7 | 13.6 | |||||
Net investment income | 139.9 | 117.9 | 18.7 | 403.9 | 338.1 | 19.5 | |||||
Other income | 43.7 | 40.6 | 7.6 | 132.5 | 120.3 | 10.1 | |||||
Operating revenues | 1,402.2 | 1,228.2 | 14.2 | 3,976.4 | 3,486.2 | 14.1 | |||||
Loss and loss adjustment expenses | 794.8 | 645.8 | 23.1 | 2,205.7 | 1,842.7 | 19.7 | |||||
Sales and general expenses | 395.2 | 346.9 | 13.9 | 1,103.5 | 986.8 | 11.8 | |||||
Interest and other expenses | 14.7 | 19.9 | (25.8) | 46.7 | 63.6 | (26.4) | |||||
Operating expenses | 1,204.9 | 1,012.7 | 19.0 | 3,356.1 | 2,893.1 | 16.0 | |||||
Segment pretax operating income | $ 197.3 | $ 215.5 | (8.5) % | $ 620.3 | $ 593.0 | 4.6 % | |||||
Loss ratio: | |||||||||||
Current year | 66.9 % | 66.5 % | 66.4 % | 66.8 % | |||||||
Prior years | (1.7) | (6.1) | (2.3) | (5.9) | |||||||
Total | 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 % | |||||||
General Insurance net premiums earned increased
The net investment income increase for both periods was largely due to higher investment yields earned.
The 2024 loss ratios for General Insurance reflect lower levels of favorable prior year loss reserve development in workers' compensation and commercial auto when compared to the historically high levels experienced in 2023. Unfavorable development in transactional risk coverages and favorable development in property coverages were also contributors to prior year loss reserve development trends. The expense ratios continue to reflect a benefit from scale, and investments in new underwriting subsidiaries and information technology.
Together, these factors produced profitable combined ratios and strong pretax operating income for the quarter and the first nine months. For General Insurance, we target combined ratios between
Title Insurance Segment Operating Results | |||||||||||
Quarters Ended September 30, | Nine Months Ended September 30, | ||||||||||
2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||
Net premiums and fees earned | $ 708.5 | $ 684.4 | 3.5 % | — % | |||||||
Net investment income | 15.9 | 14.1 | 12.6 | 47.1 | 42.1 | 12.0 | |||||
Other income | — | 0.2 | N/M | 0.5 | 0.6 | N/M | |||||
Operating revenues | 724.5 | 698.8 | 3.7 | 1,965.1 | 1,960.0 | 0.3 | |||||
Loss and loss adjustment expenses | 19.6 | 18.2 | 7.6 | 47.0 | 49.8 | (5.7) | |||||
Sales and general expenses | 665.1 | 643.4 | 3.4 | 1,830.2 | 1,821.3 | 0.5 | |||||
Interest and other expenses (income) | (0.4) | (0.3) | N/M | (0.9) | (0.8) | N/M | |||||
Operating expenses | 684.2 | 661.3 | 3.5 | 1,876.4 | 1,870.4 | 0.3 | |||||
Segment pretax operating income | $ 40.2 | $ 37.4 | 7.5 % | $ 88.6 | $ 89.6 | (1.1) % | |||||
Loss ratio: | |||||||||||
Current year | 3.5 % | 3.8 % | 3.5 % | 3.8 % | |||||||
Prior years | (0.7) | (1.1) | (1.0) | (1.2) | |||||||
Total | 2.8 | 2.7 | 2.5 | 2.6 | |||||||
Expense ratio | 93.9 | 94.0 | 95.4 | 95.0 | |||||||
Combined ratio | 96.7 % | 96.7 % | 97.9 % | 97.6 % | |||||||
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 slightly lower 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 nine months of 2023 were impacted by the recovery of a
Together, these factors produced higher pretax operating income for the quarter and relatively flat pretax operating income for the first nine months.
Corporate & Other Operating Results | ||||||||||||
Quarters Ended September 30, | Nine Months Ended September 30, | |||||||||||
2024 | 2023 | % Change | 2024 | 2023 | % Change | |||||||
Net premiums earned | $ 2.1 | $ 6.0 | (65.0) % | $ 12.0 | $ 19.1 | (37.0) % | ||||||
Net investment income | 15.2 | 13.8 | 9.8 | 51.6 | 42.9 | 20.1 | ||||||
Operating revenues | 17.3 | 19.9 | (13.2) | 63.6 | 62.1 | 2.3 | ||||||
Benefits, loss and loss adjustment expenses | 1.5 | (0.5) | N/M | 2.2 | (7.4) | 130.1 | ||||||
Insurance expenses | 0.9 | 3.7 | (75.2) | 6.7 | 12.2 | (45.3) | ||||||
Corporate, interest, and other expenses - net | 23.1 | 18.9 | 22.0 | 48.9 | 38.7 | 26.2 | ||||||
Operating expenses | 25.6 | 22.1 | 15.8 | 57.8 | 43.6 | 32.6 | ||||||
Corporate & Other pretax operating income (loss) | $ (8.3) | $ (2.1) | N/M | $ 5.7 | $ 18.5 | (68.9) % | ||||||
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. Net investment income increased in both periods due to higher investment yields earned, offset slightly by a declining invested asset base which was impacted by share repurchase activity and the issuance of
Summary Consolidated Balance Sheet | |||||||||
September 30, | December 31, | ||||||||
2024 | 2023 | ||||||||
Assets: | |||||||||
Fixed income securities (at fair value) | $ 12,476.5 | $ 12,139.9 | |||||||
Short-term investments (at fair value which approximates cost) | 1,317.6 | 1,032.6 | |||||||
Equity securities (at fair value) | 2,668.4 | 2,660.8 | |||||||
Other investments | 41.4 | 34.3 | |||||||
Cash | 525.2 | 202.8 | |||||||
Accrued investment income | 123.5 | 117.0 | |||||||
Accounts and notes receivable | 2,640.2 | 2,201.4 | |||||||
Federal income tax recoverable: Current | 38.4 | 21.8 | |||||||
Reinsurance balances and funds held | 479.3 | 544.7 | |||||||
Reinsurance recoverable | 7,002.2 | 5,951.4 | |||||||
Deferred policy acquisition costs | 505.3 | 417.8 | |||||||
Other assets | 1,025.1 | 1,176.4 | |||||||
Total assets | $ 28,843.8 | $ 26,501.4 | |||||||
Liabilities and Shareholders' Equity: | |||||||||
Loss and loss adjustment expense reserves | $ 13,537.7 | $ 12,538.2 | |||||||
Unearned premiums | 3,679.1 | 3,042.7 | |||||||
Other policyholders' benefits and funds held | 168.0 | 150.3 | |||||||
Commissions, expenses, fees, and taxes | 509.8 | 533.8 | |||||||
Reinsurance balances and funds held | 1,603.3 | 1,380.9 | |||||||
Federal income tax: Deferred | 214.0 | 105.6 | |||||||
Debt | 1,988.4 | 1,591.2 | |||||||
Other liabilities | 697.8 | 747.5 | |||||||
Total liabilities | 22,398.4 | 20,090.7 | |||||||
Shareholders' equity | 6,445.3 | 6,410.7 | |||||||
Total liabilities and shareholders' equity | $ 28,843.8 | $ 26,501.4 | |||||||
Composition of shareholders' equity per share: | |||||||||
Equity before items below | $ 21.34 | $ 20.51 | |||||||
Unrealized investment gains (losses) and other | |||||||||
accumulated comprehensive income (loss) | 4.37 | 2.80 | |||||||
Total | $ 25.71 | $ 23.31 | |||||||
Investments |
As of September 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 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 dividend payments to shareholders.
Quarter | Year | ||||||
Ended | Ended | ||||||
Sep. 30, | Nine Months Ended Sep. 30, | Dec. 31, | |||||
2024 | 2024 | 2023 | 2023 | ||||
Beginning balance | $ 23.59 | $ 23.31 | $ 21.07 | $ 21.07 | |||
Changes in shareholders' equity: | |||||||
Net income excluding net investment gains (losses) | 0.73 | 2.18 | 1.96 | 2.65 | |||
Net of tax realized investment gains (losses) | (0.04) | 0.34 | (0.04) | (0.19) | |||
Net of tax unrealized investment gains (losses): | |||||||
Fixed income securities | 1.20 | 0.93 | (0.12) | 1.31 | |||
Equity securities | 0.66 | 0.34 | (0.49) | (0.34) | |||
Total net of tax realized and unrealized | |||||||
investment gains (losses) | 1.82 | 1.61 | (0.65) | 0.78 | |||
Cash dividends | (0.265) | (0.795) | (0.735) | (0.980) | |||
Other - net | (0.16) | (0.59) | (0.27) | (0.21) | |||
Net change | 2.12 | 2.40 | 0.30 | 2.24 | |||
Ending balance | $ 25.71 | $ 25.71 | $ 21.37 | $ 23.31 | |||
Change for the period | 9.0 % | 10.3 % | 1.4 % | 10.6 % | |||
Change for the period, inclusive of cash dividends | 10.1 % | 13.7 % | 4.9 % | 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 third 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 1-800-715-9871, passcode 4060501. Interested parties may also listen to a replay of the call through October 31, 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:
| |||
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
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