Old Republic International (ORI) Q2 2024 earnings summary

Executive summary

• Pretax operating income for Q2 2024 was $253.8M, up 11.6% year-over-year, driven by strong General and Title Insurance segment performance.

• Net operating income per diluted share rose 22.6% to $0.76; book value per share increased 3.5% since year-end 2023, inclusive of dividends.

• Net premiums and fees earned grew 9.0% year-over-year in Q2, with General Insurance up 13.8% and Title Insurance up 2.1%.

• Total capital returned to shareholders in Q2 was $479M, including $410M in share repurchases.

• Net income for Q2 was $91.8M, down from $155.5M last year, impacted by $140.5M in net investment losses.

Financial highlights

• Q2 net premiums and fees earned: $1.80B (+9.0% YoY); net investment income: $167.4M (+20.1% YoY).

• Combined ratio for Q2 was 93.5% (vs. 92.6% last year), with General Insurance at 92.4% and Title Insurance at 95.4%.

• Diluted EPS for Q2: $0.35 (vs. $0.54 last year); adjusted EPS excluding investment gains (losses): $0.76 (+22.6% YoY).

• Book value per share at June 30, 2024: $23.59, up 3.5% since year-end 2023.

• Shareholders’ equity at June 30, 2024: $6.03B.

Outlook and guidance

• Management targets General Insurance combined ratios between 90% and 95% over a full underwriting cycle.

• Title Insurance expected to benefit from expense management and favorable claim trends as the real estate market stabilizes.

• Investment portfolio strategy remains focused on quality, liquidity, and matching asset maturities to liabilities.

• Plan to complete the remaining share repurchase program by year-end, with more capital return anticipated.

• Management emphasizes long-term focus, operational excellence, and profitable growth through decentralized specialty insurance operations.