NYSE$ORI

Old Republic International Corp · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Old Republic's Q3 2021 results reflected strong growth in profitability, particularly in the General Insurance and Title Insurance businesses, with improved underwriting results and increased net premiums and fees earned.

Old Republic International Corporation reported strong growth in profitability for Q3 2021, driven by solid underwriting results in the General Insurance and Title Insurance businesses. Consolidated combined ratios improved, and net premiums and fees earned increased significantly. However, total and per share net income were impacted by fluctuations in the fair value of equity securities.

  • Consolidated pretax income, excluding investment gains/losses, showed strong growth in General Insurance and Title Insurance.
  • Consolidated combined ratio improved to 89.8% for the third quarter compared to 92.3% in the same period last year.
  • Net premiums and fees earned increased by 18.6% for the quarter.
  • Book value per share advanced to $20.96 as of September 30, 2021, from $20.75 at December 31, 2020.

Headline financials

Total Revenue

$2.21B

Previous: $1.8B+22.3%
EPS (adj)

$0.79

Previous: $0.62+27.4%
Consolidated Combined Ratio

89.8%

Previous: 92.0%-2.4%
General Insurance Combined

91.3%

Previous: 95.5%-4.4%
Title Insurance Combined

89.0%

Previous: 88.2%+0.9%
Net Income

$88.7M

Previous: $246M-63.9%
Operating Income

$106M

Previous: $307M-65.5%
Gross Profit

$2.01B

Previous: $1.88B+6.8%
Cash & Equivalents

$11.7B

No prior period
Total Assets

$25B

Previous: $22.2B+12.3%

Revenue & EPS history

Old Republic · Revenue · Quarterly

$2.21B

Q3 2021+22.3%vs Q3 2020
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Old Republic · $2.04B total across 2 segments · Q3 2021

  • Title Insurance
    $1.14B+44.7%
  • Specialty Insurance
    $903M+4.7%

Forward guidance

As the economy continues to emerge from the pandemic, premium and fee revenues in General Insurance could continue growing. As low interest rates and a favorable real estate market continue, Title Insurance premium and fee revenues could remain strong, although may be lower than recent periods.

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 Q3 2021

Historical avgQ3 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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