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Old Republic
🇺🇸 NYSE:ORI
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•
Jun 30, 2020

Old Republic Q2 2020 Earnings Report

Old Republic's financial performance was affected by stable general insurance results, increased title insurance profitability, and higher RFIG Run-off claim costs, leading to a consolidated combined ratio of 96.0%.

Key Takeaways

Old Republic International Corporation reported a net income of $397.7 million for the second quarter of 2020. The company's performance was influenced by stable results in the General Insurance segment, greater profitability in the Title Insurance segment, and increased claim costs in the RFIG Run-off business. The COVID-19 pandemic impacted premium and fee revenues in the General Insurance segment, while the Title Insurance segment saw strong growth.

Net income for the second quarter of 2020 was $397.7 million.

The consolidated combined ratio for the second quarter of 2020 was 96.0%, slightly up from 95.2% in the second quarter of 2019.

The COVID-19 pandemic impacted the General Insurance segment’s premium and fee revenues, while the Title Insurance segment experienced strong growth.

Improved market performance had a significant positive impact on the financial results of the second quarter.

The company's book value per share recovered to $19.68 as of June 30, 2020, compared to $17.29 at March 31, 2020.

Total Revenue
$1.62B
Previous year: $1.61B
+1.0%
EPS
$0.42
Previous year: $0.45
-6.7%
General Insurance Combined Ratio
98.4%
Previous year: 98.1%
+0.3%
Title Insurance Combined Ratio
91.4%
Previous year: 91.4%
+0.0%
Consolidated Combined Ratio
96%
Previous year: 95.2%
+0.8%
Gross Profit
$1.97B
Previous year: $1.64B
+19.8%
Total Assets
$21.7B
Previous year: $21B
+3.2%

Old Republic

Old Republic

Old Republic Revenue by Segment

Forward Guidance

Old Republic anticipates potential impacts from the COVID-19 pandemic on future revenues and underwriting expense ratios. The RFIG Run-off business's claims experience may depend on loan forbearance programs and employment recovery rates. Management believes the company's financial strength will allow it to meet obligations.

Positive Outlook

  • Company’s strong financial condition.
  • Insurance subsidiaries can meet obligations to customers.
  • Insurance subsidiaries can meet obligations to policyholders.
  • Insurance subsidiaries can meet obligations to beneficiaries.
  • Company managed for the long run.

Challenges Ahead

  • Economic impacts from the COVID-19 pandemic could affect future premium and fee revenues in the General Insurance segment.
  • Economic impacts from the COVID-19 pandemic could affect future premium and fee revenues in the Title Insurance segments.
  • Underwriting expense ratios could rise.
  • Future claims experience in the RFIG Run-off business could depend upon the continued, mitigating effects of loan forbearance programs mandated by the Federal government.
  • Future claims experience in the RFIG Run-off business could depend upon the rate at which employment levels recover.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

View Old Republic