NYSE$ORI

Old Republic International Corp · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Old Republic's fourth quarter earnings were released, revealing a net income of $275.8 million. The consolidated results were positively influenced by the Title Insurance segment, although net income was significantly impacted by changes in the fair value of equity securities.

Old Republic International Corporation reported a net income of $275.8 million for Q4 2019, driven by greater profitability in the Title Insurance segment. However, the total and per share net income were significantly impacted by changes in the fair value of equity securities.

  • Net income for Q4 2019 was $275.8 million.
  • Title Insurance segment profitability drove consolidated results.
  • Net income was significantly impacted by changes in the fair value of equity securities.
  • The annualized dividend rate of $0.80 per share marks the 38th consecutive year of dividend increase.

Headline financials

Total Revenue

$1.76B

Previous: $1.59B+10.9%
EPS (adj)

$0.47

Previous: $0.45+4.4%
Consolidated Combined Ratio

95.1%

No prior period
General Insurance Combined

98.8%

No prior period
Title Insurance Combined

90.6%

No prior period
Net Income

$276M

Previous: -$107M+359.0%
Operating Income

$346M

No prior period
Gross Profit

$1.93B

Previous: $1.28B+50.6%
Cash & Equivalents

$10.4B

No prior period
Total Assets

$21.1B

Previous: $19.3B+9.1%

Revenue & EPS history

Old Republic · Revenue · Quarterly

$1.76B

Q4 2019+10.9%vs Q4 2018
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

Old Republic · $1.6B total across 2 segments · Q4 2019

  • Specialty Insurance
    $881M
  • Title Insurance
    $717M

Forward guidance

Management targets annually reported claim ratio averages in the high 60% to low 70% range, and assuming the current mix of coverages, overall expense ratio averages between 23% and 25%, with resulting composite ratio averages between 90% and 95%.

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 Q4 2019

Historical avgQ4 2019

-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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