Old Republic International Corporation Reports Q4 and Full Year 2024 Results
Old Republic International Corporation, a major player in the insurance industry, has released its financial results for the fourth quarter and full year 2024. The company, known for its long-term management approach, has provided detailed insights into its performance across various segments.
Financial Highlights
For the fourth quarter of 2024, Old Republic reported a net income per diluted share of $0.42, a decrease from $0.69 in the same period last year. However, net operating income per diluted share, which excludes investment gains or losses, rose to $0.90 from $0.69. The consolidated pretax operating income for the quarter was $285.0 million, and $999.8 million for the full year. Consolidated net premiums and fees earned increased by 11.4% in the quarter and 9.0% for the full year. Net investment income also saw a rise, increasing by 9.8% in the quarter and 16.4% for the full year.
Business and Operational Highlights
Old Republic's Specialty Insurance segment saw a 13.3% increase in net premiums earned for the quarter and a 13.5% increase for the full year. This growth was driven by premium rate increases, high renewal retention ratios, and new business production. The Title Insurance segment also performed well, with net premiums and fees earned increasing by 8.7% for the quarter and 2.2% for the full year.
Strategic Initiatives and Corporate Developments
During the quarter, Old Republic returned $733 million to shareholders, comprising $558 million in dividends and $174 million in share repurchases. For the full year, the total capital returned to shareholders was $1,708 million, including $766 million in dividends and $942 million in share repurchases. The company also declared a special cash dividend of $2.00 per share, paid in January 2025.
Management's Perspective
Craig R. Smiddy, President and CEO of Old Republic, emphasized the company's focus on achieving highly profitable operating results over the long term and ensuring balance sheet strength. He noted that the evaluation of periodic and long-term results excludes consideration of all investment gains or losses, as these can mask trends in operating results.
Future Outlook
Old Republic's management remains optimistic about the company's future, targeting combined ratios between 90% and 95% over a full underwriting cycle. The company continues to focus on achieving favorable underwriting results and maintaining a sound financial condition to support its insurance underwriting subsidiaries' obligations to policyholders and their beneficiaries.
SEC Filing: OLD REPUBLIC INTERNATIONAL CORP [ ORI ] - 8-K - Jan. 23, 2025