CHICAGO - Old Republic International Corporation (NYSE: NYSE:ORI) reported a stronger-than-expected performance for the first quarter of 2024, with earnings surpassing analyst estimates.
The company announced a first-quarter adjusted EPS of $0.67, which was $0.02 higher than the consensus estimate of $0.65. Revenue for the quarter was also robust, coming in at $2.02 billion, significantly above the analyst projection of $1.82 billion.
The insurance company's pretax income, excluding investment gains, rose by 3.9% compared to the first quarter of the previous year, indicating a solid growth trajectory. This increase was primarily attributed to a strong performance in the General Insurance sector, which somewhat mitigated the decline in Title Insurance. The consolidated net premiums and fees earned saw a 5.6% increase, driven by double-digit growth in General Insurance. Moreover, net investment income experienced a notable surge of 19.1%, primarily due to higher investment yields.
Old Republic's management highlighted the importance of focusing on income excluding investment gains to better analyze and evaluate the insurance operations' results. The company's combined ratio, a key measure of underwriting profitability, deteriorated slightly to 94.3% from 92.7% in the prior year, reflecting a modest increase in claims and expenses relative to premiums.
The company's book value per share also saw an uptick, rising by 3.4% inclusive of dividends, to $23.83, demonstrating an increase in shareholder equity.
Old Republic's President and CEO, Craig R. Smiddy, commented on the results, emphasizing the company's long-term management approach and its focus on achieving highly profitable operating results. He noted that the evaluation of periodic and long-term results excludes consideration of all investment gains (losses), which aligns with the company's strategy of managing for the long run.
Old Republic International Corporation, based in Chicago, is among the nation's 50 largest shareholder-owned insurance businesses and ranks within the Fortune 500 list of America's largest companies. It operates primarily in the general and title insurance fields, with its general insurance business being one of the nation's 50 largest and its title insurance business ranking third in the industry.
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