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Mar 31, 2024
Old Republic Q1 2024 Earnings Report
Old Republic reported first quarter results with pretax income excluding investment gains increasing by 3.9% and diluted net operating income per share up by 9.8%.
Key Takeaways
Old Republic International Corporation reported a 3.9% increase in pretax income, excluding investment gains, for the first quarter of 2024, driven by strong growth in General Insurance, partially offset by a decline in Title Insurance. Diluted net operating income per share rose by 9.8%.
Diluted net operating income per share increased by 9.8% year-over-year, reaching $0.67.
The consolidated combined ratio was 94.3%, a 1.6 point increase from the previous year.
Net premiums and fees earned exceeded $1.6 billion, showing a 5.6% increase, boosted by double-digit growth in General Insurance but offset by a decline in Title Insurance.
Net investment income rose by 19.1% to $164.1 million, driven by higher investment yields.
Revenue by Segment
Forward Guidance
Old Republic manages its insurance business for the long run, focusing on favorable underwriting results and maintaining financial strength. The company evaluates performance over 10-year intervals to account for economic and underwriting cycles.
Positive Outlook
- Achieving highly profitable operating results over the long term.
- Ensuring balance sheet strength for insurance underwriting subsidiaries' obligations.
- Focusing on underwriting and overall operating performance trends over 10-year intervals.
- Adapting to premium rate changes and reflecting underwriting results in financial statements.
- Quantifying reserved loss costs with greater certainty over longer periods.
Challenges Ahead
- Prices (premiums) charged for most products are set without knowing what the ultimate loss costs will be.
- Uncertainty regarding when claims will be paid, potentially many years after a policy was issued or expired.
- 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.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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