OLD REPUBLIC REPORTS RESULTS FOR THE SECOND QUARTER AND FIRST HALF 2024
CHICAGO, July 25, 2024 /PRNewswire/ --
OVERALL RESULTS | ||||||||||||
Quarters Ended June 30, | Six Months Ended June 30, | |||||||||||
2024 | 2023 | % Change | 2024 | 2023 | % Change | |||||||
Pretax income | $ 113.3 | $ 196.9 | $ 512.1 | $ 446.1 | ||||||||
Pretax investment gains (losses) | (140.5) | (30.4) | 26.6 | (4.2) | ||||||||
Pretax income excluding investment gains (losses) | $ 253.8 | $ 227.3 | 11.6 % | $ 485.4 | $ 450.3 | 7.8 % | ||||||
Net income | $ 91.8 | $ 155.5 | $ 408.6 | $ 355.4 | ||||||||
Net of tax investment gains (losses) | (110.6) | (24.0) | 21.4 | (3.3) | ||||||||
Net income excluding investment gains (losses) | $ 202.4 | $ 179.6 | 12.7 % | $ 387.2 | $ 358.8 | 7.9 % | ||||||
Combined ratio | 93.5 % | 92.6 % | 93.8 % | 92.6 % | ||||||||
PER DILUTED SHARE | ||||||||||||
Quarters Ended June 30, | Six Months Ended June 30, | |||||||||||
2024 | 2023 | % Change | 2024 | 2023 | % Change | |||||||
Net income | $ 0.35 | $ 0.54 | $ 1.51 | $ 1.22 | ||||||||
Net of tax investment gains (losses) | (0.41) | (0.08) | 0.08 | (0.01) | ||||||||
Net income excluding investment gains (losses) | $ 0.76 | $ 0.62 | 22.6 % | $ 1.43 | $ 1.23 | 16.3 % | ||||||
SHAREHOLDERS' EQUITY (BOOK VALUE) | ||||||||||||
June 30, | Dec. 31, | |||||||||||
2024 | 2023 | % Change | ||||||||||
Total | $ 6,026.6 | $ 6,410.7 | (6.0) % | |||||||||
Per Common Share | $ 23.59 | $ 23.31 | 1.2 % | |||||||||
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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 $253.8 for the quarter and $485.4 for the first six months. General Insurance pretax operating income rose 9.9% for the quarter and 12.0% for the first six months. Title Insurance pretax operating income increased 32.5% for the quarter, partially offsetting the first quarter decline.
Summary of results for the quarter:
- Net operating income per diluted share of $0.76, up 22.6% over last year.
- Consolidated net premiums and fees earned increased 9.0%, from growth in both the General and Title Insurance segments.
- Net investment income increased 20.1%, driven by higher investment yields.
- Consolidated combined ratio of 93.5%, up 0.9 points over last year, reflecting more normalized levels of favorable loss reserve development.
- Favorable loss reserve development of 2.2 points, compared to 4.6 points last year.
- Total capital returned to shareholders during the quarter of $479, including repurchases of $410.
- Book value per share of $23.59, up 3.5% since year-end 2023, inclusive of dividends.
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 segment pretax 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 June 30, | Six Months Ended June 30, | |||||||||||
SUMMARY INCOME STATEMENTS: | 2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||
Revenues: | ||||||||||||
Net premiums and fees earned | $ 1,797.4 | $ 1,648.7 | 9.0 % | $ 3,440.1 | $ 3,203.9 | 7.4 % | ||||||
Net investment income | 167.4 | 139.4 | 20.1 | 331.6 | 277.2 | 19.6 | ||||||
Other income | 47.3 | 40.6 | 16.5 | 89.2 | 80.1 | 11.4 | ||||||
Total operating revenues | 2,012.2 | 1,828.8 | 10.0 | 3,861.0 | 3,561.3 | 8.4 | ||||||
Investment gains (losses): | ||||||||||||
Realized from actual transactions and | (54.1) | 2.1 | 126.2 | 30.3 | ||||||||
Unrealized from changes in fair value of equity | (86.3) | (32.6) | (99.6) | (34.6) | ||||||||
Total investment gains (losses) | (140.5) | (30.4) | 26.6 | (4.2) | ||||||||
Total revenues | 1,871.7 | 1,798.3 | 3,887.6 | 3,557.0 | ||||||||
Operating expenses: | ||||||||||||
Loss and loss adjustment expenses | 741.5 | 617.8 | 20.0 | 1,439.0 | 1,221.7 | 17.8 | ||||||
Sales and general expenses | 994.5 | 962.9 | 3.3 | 1,897.8 | 1,851.5 | 2.5 | ||||||
Interest and other expenses | 22.2 | 20.7 | 7.5 | 38.7 | 37.6 | 2.9 | ||||||
Total operating expenses | 1,758.3 | 1,601.4 | 9.8 % | 3,375.5 | 3,110.9 | 8.5 % | ||||||
Pretax income | 113.3 | 196.9 | 512.1 | 446.1 | ||||||||
Income taxes | 21.4 | 41.3 | 103.4 | 90.6 | ||||||||
Net income | $ 91.8 | $ 155.5 | $ 408.6 | $ 355.4 | ||||||||
COMMON STOCK STATISTICS: | ||||||||||||
Components of net income per share: | ||||||||||||
Basic net income excluding investment gains | $ 0.77 | $ 0.63 | 22.2 % | $ 1.45 | $ 1.24 | 16.9 % | ||||||
Net investment gains (losses): | ||||||||||||
Realized investment gains (losses) | (0.16) | 0.01 | 0.38 | 0.08 | ||||||||
Unrealized from changes in f
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