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Old Republic International Corp (NYSE:ORI) reported solid second-quarter 2025 results, with operating earnings per share rising 9% year-over-year to $0.83, driven by strong performance in its Specialty Insurance segment despite weakness in Title Insurance. The company’s stock was up 1.86% in premarket trading on July 24, 2025, reflecting positive investor sentiment toward the results.
Quarterly Performance Highlights
Old Republic’s Q2 2025 operating earnings per share of $0.83 represented a 9% increase from $0.76 in the second quarter of 2024. This growth was primarily driven by a 25% increase in pretax operating income in the Specialty Insurance segment, which was partially offset by a 47% decrease in the Title Insurance segment.
Net premiums and fees earned reached $1.99 billion, an 11% increase from Q2 2024, with Specialty Insurance up 15% and Title Insurance up 5%. The company maintained a solid combined ratio of 93.6, slightly higher than last year’s 93.5, with favorable development of 2.1 points across all segments.
As shown in the following quarterly highlights chart:
Book value per share increased to $25.14, representing a 12.6% increase from year-end 2024 when adding back dividends. The company also raised its regular quarterly dividend by 9.4% to $0.29 per share and has $200 million remaining on its current $1.1 billion share repurchase program.
Business Segment Analysis
Old Republic’s business model features a unique and complementary combination of Specialty Property & Casualty insurance and Title insurance, providing diversification across different market cycles. The Specialty Insurance segment contributed 85% of 2024 pre-tax operating income, while Title Insurance contributed 14%.
The following chart illustrates this business profile:
The Specialty Insurance segment continued to perform strongly in Q2 2025, with its combined ratio improving to 90.7 from 92.4 in the prior year. This segment focuses on risk management expertise serving large customers and group clients, with over 70% of workers’ compensation premium being loss sensitive. The segment’s diverse product portfolio and limited property-catastrophe exposure contribute to its consistent profitability.
As shown in the following chart of Specialty Insurance underwriting profit:
In contrast, the Title Insurance segment faced challenges, with its combined ratio deteriorating to 99.0 from 95.4 in Q2 2024. Despite these challenges, Old Republic maintains its position as the third-largest title insurer in the nation with a 14.4% market share in a concentrated industry.
The following chart shows the Title Insurance market share:
The Title Insurance segment’s profitability has historically been protected by consistently low single-digit loss ratios and a variable cost structure that helps mitigate the impact of real estate market fluctuations:
Financial Position & Shareholder Returns
Old Republic maintains a strong financial position with shareholders’ equity of $6.20 billion and book value per share of $25.14 as of June 30, 2025. The company has an annualized operating return on equity of 14.6% and holds A+ ratings from both A.M. Best and S&P Global.
The company’s investment portfolio is high-grade, transparent, and liquid, with 84% in fixed income (99% investment grade) and 16% in equities. This conservative approach to investments has contributed to the company’s long-term stability and consistent performance.
As illustrated in the following chart of consolidated financial trends:
Old Republic has demonstrated a strong commitment to shareholder returns, with 84 years of cash dividends without interruption and annual dividend increases for each of the past 44 years. The company’s current annual regular dividend run-rate is $1.16 per share, yielding 3.0%.
The company’s dividend and share repurchase history is shown in the following chart:
Forward-Looking Statements
Old Republic’s long-term focus is evident in its approach to managing the business through various market cycles. The company’s low volatility model, compared to property and casualty peers, has contributed to consistent growth in book value per share over time.
As shown in the following chart comparing Old Republic to its peers:
The company continues to invest in growth initiatives, having launched five new operating companies focused on specialty niches between 2021 and 2025, including Old Republic Cyber in 2025. These initiatives are part of the company’s strategy to expand its specialty insurance offerings while maintaining its disciplined underwriting approach.
Looking ahead, Old Republic is well-positioned to continue its growth trajectory, particularly in the Specialty Insurance segment. While the Title Insurance segment faces challenges from the current real estate market environment, the company’s diversified business model provides stability and resilience across different market cycles.
According to the recent earnings call, CEO Craig Smitting highlighted the company’s focus on profitable growth in specialty insurance, stating, "Profitable growth continues in Specialty Insurance." This aligns with the presentation’s emphasis on the company’s long-term strategy of managing for sustainable growth and shareholder returns.
Full presentation:
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