- Net operating income for Old Republic International (ORI, Financial) increased 9.2% in Q1 2025 to $201.7 million.
- Consolidated net premiums and fees earned rose by 12.1% to over $1.8 billion.
- Book value per share grew by 7.2% to $24.19 since year-end 2024.
Old Republic International Corporation (ORI) reported its first quarter 2025 results, showcasing mixed financial performance with a strong operational improvement. The company's net income decreased to $245.0 million from $316.7 million in the previous year, primarily due to a decline in net investment gains to $55.0 million from $167.1 million.
The net operating income, however, rose by 9.2% to $201.7 million, and the net operating income per diluted share saw a substantial increase of 20.9% to $0.81, up from $0.67 last year. ORI witnessed a robust growth in consolidated net premiums and fees earned, which increased by 12.1% to over $1.8 billion, indicating strong market performance.
Net investment income showed a moderate increase of 4.0%, reaching $170.7 million. Improvement was also seen in the consolidated combined ratio, which improved to 93.7% from the previous year's 94.3%, demonstrating effective underwriting and cost control. The book value per share reached $24.19, marking a 7.2% rise since the end of 2024, underscoring the company's commitment to long-term value creation.
Segment-wise, the Specialty Insurance segment reported a 13.0% increase in net premiums earned, driven by premium rate hikes and strong renewal retention. The Title Insurance segment also reported a 10.9% growth in net premiums and fees earned, bolstered by a 27% rise in commercial premiums, although it continues to grapple with a combined ratio above 100% at 102.1%.
Despite the decrease in overall net income, Old Republic's core earnings quality improved and premium growth remained healthy. The company continued its trend of capital return, distributing $93 million back to shareholders, comprising $68 million in dividends and $25 million in share repurchases, reflecting its strategy to provide shareholder value while maintaining strong financial health.
