CHICAGO - Old Republic International Corporation (NYSE: NYSE:ORI) has announced a special cash dividend of $2.00 per share, payable on January 15, 2025, to shareholders on record as of January 3, 2025. This move is set to return approximately $500 million to its shareholders. The company has maintained dividend payments for 54 consecutive years, according to InvestingPro data, demonstrating a strong commitment to shareholder returns.
The decision by the Board of Directors comes as part of Old Republic's broader strategy of capital return to shareholders, which includes an ongoing share repurchase program. To date in the fourth quarter, the company has bought back $174 million worth of shares under the current $1.1 billion authorization, leaving roughly $240 million available for future repurchases.
President and CEO Craig R. Smiddy stated that the company's strong performance has generated excess capital, enabling these returns to shareholders. The special dividend and share repurchases, which have totaled over $1.7 billion and reduced outstanding shares by more than 20% in the last two and a half years, reflect Old Republic's solid financial standing and optimism for its diversified specialty insurance portfolio. With a market capitalization of $9.1 billion and a P/E ratio of 10.2, InvestingPro analysis suggests the stock is currently trading below its Fair Value, while maintaining a strong financial health score of 2.76 (GOOD). The company has delivered impressive returns, with the stock up 27% year-to-date.
Since December 31, 2019, Old Republic has returned over $4 billion to its shareholders through repurchases and dividends. The firm has also raised its regular annual cash dividend to $1.06 per share, an 8.2% increase from 2023, marking the 43rd consecutive year of dividend increases and the 83rd year of uninterrupted regular cash dividend payments.
Old Republic International Corporation, headquartered in Chicago, is among the top 50 largest shareholder-owned insurance organizations in the United States and is listed on the Fortune 500. The company operates through its subsidiaries in general and title insurance, with its general insurance segment ranking among the top 50 in the nation and its title insurance business as the third largest in the industry. For deeper insights into ORI's valuation, financial health, and growth prospects, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 US stocks with expert analysis and actionable intelligence.
The information in this article is based on a press release statement from Old Republic International Corporation.
In other recent news, Old Republic International has been the focus of several recent developments. Piper Sandler has adjusted its price target for the company, increasing it to $41.00 from the previous $39.00, and maintained its Overweight rating on Old Republic International's stock. This adjustment is based on the application of new earnings multiples to the company's projected 2026 earnings.
Additionally, Old Republic International reported a decrease in its consolidated pretax operating income for the third quarter of 2024, falling to $229 million from $251 million in the same period last year. The company's net operating income also saw a slight decrease, dipping to $183 million. However, the company reported a significant 17% rise in net investment income and continued its share repurchase program, buying back $165 million worth of shares during the quarter and an additional $23 million after the quarter ended.
According to Old Republic International's management, a recovery in the real estate market is anticipated to begin in late 2025, with more significant impacts expected in 2026. The company is making ongoing investments in technology and specialty underwriting to support long-term growth and continues to prioritize capital management. These are the recent developments concerning Old Republic International.
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