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Mar 31, 2023

Old Republic Q1 2023 Earnings Report

Reported pretax income, excluding investment gains (losses), General Insurance pretax operating income rose, while Title Insurance results were negatively impacted and solid General Insurance underwriting results led to a consolidated combined ratio.

Key Takeaways

Old Republic reported pretax income, excluding investment gains (losses), of $222.9 million for the quarter. General Insurance pretax operating income rose 35.6%, while Title Insurance results were negatively impacted by the effect of elevated mortgage interest rates. Solid General Insurance underwriting results led to a consolidated combined ratio of 92.7%.

Pretax income, excluding investment gains (losses), was $222.9 million for the quarter.

General Insurance pretax operating income increased by 35.6%.

Title Insurance results were negatively impacted by elevated mortgage interest rates.

Consolidated combined ratio was 92.7% due to solid General Insurance underwriting results.

Total Revenue
$1.73B
Previous year: $2.06B
-16.0%
EPS
$0.61
Previous year: $0.63
-3.2%
General Insurance Combined Ratio
89.3%
Previous year: 91.6%
-2.5%
Title Insurance Combined Ratio
99.3%
Previous year: 92.9%
+6.9%
Consolidated Combined Ratio
92.7%
Previous year: 91.9%
+0.9%
Gross Profit
$1.76B
Previous year: $2.21B
-20.3%
Cash and Equivalents
$12.9B
Previous year: $95.1M
+13465.8%
Total Assets
$25.4B
Previous year: $25.1B
+1.1%

Old Republic

Old Republic

Old Republic Revenue by Segment

Forward Guidance

The insurance business is distinguished from most others in that the prices (premiums) charged for most products are set without knowing what the ultimate loss costs will be. We also can't know exactly when claims will be paid, which may be many years after a policy was issued or expired. This casts Old Republic as a risk-taking enterprise managed for the long run. Old Republic therefore conducts the business with a primary focus on achieving favorable underwriting results over cycles, and on maintaining a sound financial condition to support our subsidiaries' long-term obligations to policyholders and their beneficiaries.

Revenue & Expenses

Visualization of income flow from segment revenue to net income