NYSE$ORI

Old Republic International Corp · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Old Republic reported strong growth in profitability in the General Insurance and Title Insurance businesses, with a consolidated combined ratio of 90.9%.

Old Republic International Corporation reported strong first-quarter results driven by solid underwriting results in the General Insurance and Title Insurance businesses. The company's consolidated combined ratio improved to 90.9%, and net income excluding investment gains increased by 46.5%.

  • Consolidated pretax income, excluding investment gains, showed strong growth in General Insurance and Title Insurance.
  • Solid underwriting results led to a consolidated combined ratio of 90.9%, compared to 95.1% in the first quarter of 2020.
  • Title Insurance experienced robust growth in premium and fee revenues due to low interest rates and a favorable real estate market.
  • Net investment income decreased due to lower investment yields, despite growth in the invested asset base.

Headline financials

Total Revenue

$1.98B

Previous: $1.65B+20.3%
EPS (adj)

$0.69

Previous: $0.47+46.8%
Consolidated Combined Ratio

90.9%

Previous: 94.9%-4.2%
General Insurance Combined

91.6%

Previous: 95.6%-4.2%
Title Insurance Combined

90.3%

Previous: 94.7%-4.6%
Net Income

$502M

Previous: -$605M+183.0%
Operating Income

$631M

Previous: $174M+262.0%
Gross Profit

$2.35B

Previous: $701M+235.8%
Cash & Equivalents

$123M

Previous: $10.1B-98.8%
Total Assets

$23B

Previous: $20.4B+13.3%

Revenue & EPS history

Old Republic · Revenue · Quarterly

$1.98B

Q1 2021+20.3%vs Q1 2020
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Old Republic · $1.83B total across 2 segments · Q1 2021

  • Title Insurance
    $968M+54.1%
  • Specialty Insurance
    $859M+0.7%

Forward guidance

As the economy emerges from the impacts of the pandemic, premium and fee revenues in General Insurance could continue growing, especially compared to the 2020 periods where exposure levels were lower due to the effects of the pandemic on economic activity and employment levels. Title Insurance premium and fee revenues could remain strong as long as low interest rates and a favorable real estate market continue. In the RFIG Run-off business, future claims experience could depend upon the continued, mitigating effects of loan forbearance programs mandated by the Federal government, and the rate at which employment levels recover.

Tailwinds

  • Premium and fee revenues in General Insurance could continue growing as the economy recovers.
  • Title Insurance premium and fee revenues could remain strong with low interest rates and a favorable real estate market.
  • The Company’s strong financial condition will enable it to thrive as the economy recovers.

Headwinds

  • Future claims experience in the RFIG Run-off business depends on loan forbearance programs and employment recovery rates.
  • Unspecified risks associated with economic disruptions caused by the COVID-19 pandemic and governmental responses.
  • Market competition in the General Insurance segment could impact results.
  • Changes in housing demand, values, mortgage loan availability, and employment trends could affect Title Insurance and RFIG Run-off results.
  • Cyber risk.

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 2021

Historical avgQ1 2021

-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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