Insurer Old Republic's Q3 net premiums rise, helped by acquisition
ORI•Old Republic's third-quarter net premiums and fees earned rose 8.8% year over year, while net operating income per diluted share fell 6%. Net income was $243.2 million, and the company returned $190.2 million to shareholders, including $113.8 million in share repurchases.
1. Quarterly results
Old Republic reported third-quarter net income of $243.2 million and a combined ratio of 96.1%. Net premiums and fees earned increased 8.8% year over year, while net operating income per diluted share fell 6%.
2. Drivers and outlook
The company said premium rate increases, new business production and its acquisition of ECM Insurance Group helped lift net premiums earned. Specialty Insurance loss ratios increased because of lower favorable prior-year reserve development, partly offset by improved current-year loss ratios. Old Republic targets combined ratios of 90% to 95% for both Specialty Insurance and Title Insurance over a full underwriting cycle; it said Title Insurance continues to face a difficult real estate environment.
3. Shareholder returns
Old Republic returned $190.2 million to shareholders, including $113.8 million in share repurchases. The company said expense ratios reflect investment in start-up operating companies, IT modernization, data and analytics, and higher personnel costs.
