Old Republic International (ORI) Q1 2026 earnings summary

Executive summary

• Consolidated pre-tax operating income was $211.5 million, down from $252.7 million year-over-year, with a combined ratio of 96.6% versus 93.7% last year.

• Net operating income for the quarter was $171 million, compared to $202 million last year; EPS was $0.68 versus $0.81.

• Book value per share increased 2.6% since year-end, reaching $24.53, including dividends.

• Net premiums and fees earned rose 7.1% to $1.97 billion, driven by 4.7% growth in Specialty Insurance and 12.0% in Title Insurance.

• Net income rose to $330.0 million from $245.0 million year-over-year, driven by higher investment gains despite a decline in net operating income.

Financial highlights

• Net investment income rose over 4% due to a larger investment base and higher bond yields; bond portfolio yield held steady at 4.75%.

• Combined ratio increased to 96.6 from 93.7 year-over-year; Specialty Insurance at 94.8 (vs 89.8), Title Insurance at 100.1 (vs 102.1).

• Trailing 4-quarter operating income was $761.4 million, with operating ROE at 11.5%.

• Dividends declared per share increased 8.6% to $0.315.

• Shareholders’ equity stood at $5.91 billion as of March 31, 2026.

Outlook and guidance

• Net investment income growth expected to remain in the low to mid-single digits for the rest of 2026.

• Management targets combined ratios between 90% and 95% for both Specialty and Title Insurance segments over a full underwriting cycle.

• Acquisition of Everett Cash Mutual (ECM) expected to be accretive to book value per share and operating EPS, pending regulatory approval in 2026.

• Book value per share, including dividends, has grown at a 14.0% CAGR over 50 years.

• Expense ratio expected to stabilize at or below Q1 levels if premium growth continues at 3%-5% for the year.