Old Republic International reported fourth-quarter revenue of $2.39 billion, marking a 19% year-over-year increase that narrowly beat analyst models, but non-GAAP net operating income fell to $185 million, or $0.74 per share, compared with $227 million, or $0.90 per share, a year earlier. Consensus estimates had called for adjusted income of $0.87 per share, leaving the company well short and triggering a 9% drop in its share price on a broadly positive trading day.

The company’s combined ratio worsened to 96% from 92.7% in the prior-year quarter, highlighting rising claims and expense pressures. Specialty insurance underwriting income tumbled to just over $37 million from nearly $101 million, and the corporate and other segment saw its underwriting loss deepen to $15 million from $8 million. Although title insurance underwriting income improved to $47 million from $39 million, it was insufficient to offset declines elsewhere.

Old Republic’s investment portfolio remains conservatively positioned, generating a yield that contributes positively to overall returns, while the insurer declared a special dividend late last year. With a market capitalization of approximately $11 billion and a dividend yield near 2.5%, the company continues to prioritize capital returns even as underwriting margins face headwinds.

Management acknowledged that reserve additions in the trucking line contributed disproportionately to the combined ratio, suggesting some of the current weakness may be transient. Nevertheless, investors will be watching first-quarter results closely for signs of improved loss ratios or operational adjustments. Continued margin pressure could keep the shares under pressure unless offset by stronger underwriting or investment gains.