NYSE$ORI

Old Republic International Corp · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Reported strong growth in profitability in the General Insurance and Title Insurance businesses.

Old Republic International Corporation reported strong growth in profitability in the General Insurance and Title Insurance businesses for the second quarter of 2021. The consolidated combined ratio was 90.6%, and net premiums and fees earned increased by 29.1%.

  • Consolidated pretax income, excluding investment gains or losses, showed strong growth in profitability in the General Insurance and Title Insurance businesses.
  • Solid underwriting results produced a consolidated combined ratio of 90.6% for the second quarter of 2021.
  • Consolidated net premiums and fees earned increased 29.1% for the quarter.
  • Favorable investment valuation trends, along with higher retained earnings, contributed to an increased book value per share of $22.59 as of June 30, 2021.

Headline financials

Total Revenue

$2.13B

Previous: $1.62B+31.3%
EPS (adj)

$0.73

Previous: $0.42+73.8%
Consolidated Combined Ratio

90.6%

Previous: 96.0%-5.6%
General Insurance Combined

94.0%

Previous: 98.4%-4.5%
Title Insurance Combined

88.4%

Previous: 91.4%-3.3%
Net Income

$316M

Previous: $398M-20.4%
Operating Income

$396M

Previous: $152M+159.8%
Gross Profit

$2.25B

Previous: $1.97B+14.4%
Cash & Equivalents

$109M

No prior period
Total Assets

$24.7B

Previous: $21.7B+14.0%

Revenue & EPS history

Old Republic · Revenue · Quarterly

$2.13B

Q2 2021+31.3%vs Q2 2020
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Old Republic · $1.98B total across 2 segments · Q2 2021

  • Title Insurance
    $1.11B+70.5%
  • Specialty Insurance
    $867M+6.0%

Forward guidance

As the economy continues to emerge from 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 low interest rates and a favorable real estate market continue.

Tailwinds

  • Premium and fee revenues in General Insurance could continue growing.
  • Growth compared to 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.
  • Low interest rates.
  • Favorable real estate market.

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 Q2 2021

Historical avgQ2 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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