NYSE$ORI

Old Republic International Corp · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Old Republic's Q1 2020 results were impacted by changes in the fair value of equity securities, but the underlying insurance business remained solid.

Old Republic International Corporation reported a net loss of $604.8 million, or $2.01 per diluted share, due to significant declines in the fair value of equity securities. However, excluding investment gains or losses, net income was $140.8 million, or $0.47 per diluted share, representing a 15.8% increase. The Title Insurance segment drove the consolidated results.

  • Net loss was $604.8 million, or $2.01 per diluted share, impacted by investment losses.
  • Excluding investment gains/losses, net income was $140.8 million, or $0.47 per diluted share, up 15.8%.
  • Title Insurance segment showed greater profitability.
  • COVID-19 pandemic had minimal effect on Q1 operating revenues and earnings.

Headline financials

Total Revenue

$1.65B

Previous: $1.5B+9.7%
EPS (adj)

$0.47

Previous: $0.40+17.5%
Consolidated Combined Ratio

94.9%

Previous: 96.0%-1.1%
General Insurance Combined

95.6%

Previous: 95.3%+0.3%
Title Insurance Combined

94.7%

Previous: 97.7%-3.1%
Net Income

-$605M

Previous: $412M-246.7%
Operating Income

$174M

No prior period
Gross Profit

$701M

Previous: $1.87B-62.5%
Cash & Equivalents

$10.1B

No prior period
Total Assets

$20.4B

Previous: $20.3B+0.3%

Revenue & EPS history

Old Republic · Revenue · Quarterly

$1.65B

Q1 2020+9.7%vs Q1 2019
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Old Republic · $1.48B total across 2 segments · Q1 2020

  • Specialty Insurance
    $853M
  • Title Insurance
    $628M

Forward guidance

The COVID-19 pandemic could negatively affect future premium and fee revenues in the General Insurance segment and lessen demand for title insurance products and services. Future claims experience in the RFIG Run-off segment could depend upon the mitigating effects of loan forbearance programs and the rate at which the overall U.S. economy recovers.

Headwinds

  • The impact on employment levels, businesses and other economic activities could have a negative effect on future premium and fee revenues in the General Insurance segment.
  • Possible outcomes could give rise to higher underwriting expense ratios.
  • The impact on the residential and commercial real estate markets could lessen demand for title insurance products and services.
  • Future revenues from title premiums and fees in the Title Insurance segment could decline, and conversely operating expense ratios could rise.
  • Future claims experience in the RFIG Run-off segment could depend upon the mitigating effects of loan forbearance programs mandated by the Federal government, and the rate at which the overall U.S. economy, and in particular employment levels recover.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

-0.4%

Avg return

Earnings day

+0.2%

Avg return

5 days after

+2.5%

Avg return

30 days after

51%

35 / 68 earnings

Positive

+9.2%

Q3 2018

Best reaction

-10.1%

Q3 2016

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-5.2%-4.5%-6.4%
Q4 2025-9.3%-10.3%-4.4%
Q3 2025-3.0%-6.3%+9.1%
Q2 2025-2.5%-0.8%+9.0%
Q1 2025+1.2%-0.6%-1.4%
Q4 2024+1.3%+2.6%+2.1%
Q3 2024-3.9%-1.8%+7.9%
Q1 2024-0.6%-1.5%+4.0%
Q4 2023-7.9%-7.0%-5.4%
Q3 2023+0.4%+2.0%+7.9%
Q2 2023+1.5%+1.8%+0.3%
Q1 2023+2.6%+3.5%+0.6%
Q4 2022+5.1%+6.8%+6.8%
Q3 2022+2.2%+1.5%+6.5%
Q2 2022+2.0%+0.1%+5.3%
Q1 2022-7.8%-5.6%-0.8%
Q4 2021+2.7%+4.6%+6.2%
Q3 2021+7.8%+8.3%+4.9%
Q2 2021-0.2%+0.4%+7.7%
Q1 2021+1.1%+2.7%+10.0%
Q4 2020+0.7%+5.1%+7.5%
Q3 2020+6.4%+0.3%+14.4%
Q2 2020-4.9%-6.3%-7.8%
Q1 2020-0.9%+5.6%-2.1%
Q4 2019+1.9%+0.6%+1.2%
Q3 2019-5.3%-6.1%-6.7%
Q2 2019-2.1%-1.8%-2.7%
Q1 2019+4.2%+5.5%+6.4%
Q4 2018-7.8%-7.9%-2.8%
Q3 2018+9.2%+10.8%+8.2%
Q2 2018+2.4%+4.3%+9.2%
Q1 2018-3.3%-3.6%+0.0%
Q4 2017+7.4%+7.8%-0.7%
Q3 2017+0.4%+4.4%+7.5%
Q2 2017-4.2%-2.2%-2.9%
Q1 2017+2.3%-0.3%-2.4%
Q4 2016+5.9%+6.3%+6.7%
Q3 2016-10.1%-8.6%-1.2%
Q2 2016-1.6%-2.1%-3.5%
Q1 2016+1.0%
Q4 2015+1.3%
Q3 2015+8.1%
Q2 2015+0.4%
Q1 2015+2.5%
Q4 2014-1.6%
Q3 2014-1.2%
Q2 2014-7.6%
Q1 2014-1.6%
Q4 2013-8.2%
Q3 2013+7.7%
Q2 2013+2.1%
Q1 2013+0.6%
Q4 2012-0.7%
Q3 2012-5.9%
Q2 2012+0.6%
Q1 2012-0.9%
Q4 2011+2.1%
Q3 2011-4.6%
Q2 2011-5.1%
Q1 2010-0.2%
Q1 2011+4.0%
Q4 2008-2.3%
Q4 2010-2.3%
Q3 2010+0.7%
Q2 2009+0.7%
Q3 2009+0.7%
Q2 2010-1.5%
Q4 2009-1.5%

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