NYSE$ORI

Old Republic International Corp · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Old Republic reported record pretax income, excluding investment gains, for the fourth quarter and full year 2021.

Old Republic International Corporation reported a strong fourth quarter with record pretax income, excluding investment gains, driven by solid underwriting results in both General Insurance and Title Insurance. Consolidated combined ratios improved, and net premiums and fees earned saw significant growth.

  • Pretax income, excluding investment gains, increased by 20.7% for the quarter.
  • Consolidated combined ratio improved to 88.5% for the quarter.
  • Net premiums and fees earned grew by 11.3% for the quarter.
  • Book value per share advanced to $22.76 as of December 31, 2021.

Headline financials

Total Revenue

$2.27B

Previous: $2.05B+10.6%
EPS (adj)

$0.88

Previous: $0.75+17.3%
Consolidated Combined Ratio

88.5%

Previous: 90.3%-2.0%
General Insurance Combined

88.2%

Previous: 92.7%-4.9%
Title Insurance Combined

89.4%

Previous: 88.1%+1.5%
Net Income

$627M

Previous: $520M+20.6%
Operating Income

$789M

Previous: $652M+21.0%
Gross Profit

$2.72B

Previous: $2.42B+12.3%
Cash & Equivalents

$158M

Previous: $119M+33.2%
Total Assets

$25B

Previous: $22.8B+9.5%

Revenue & EPS history

Old Republic · Revenue · Quarterly

$2.27B

Q4 2021+10.6%vs Q4 2020
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Old Republic · $2.11B total across 2 segments · Q4 2021

  • Title Insurance
    $1.19B+14.9%
  • Specialty Insurance
    $926M+7.5%

Forward guidance

Old Republic's management focuses on achieving favorable underwriting results over cycles and maintaining financial soundness to support long-term obligations to policyholders.

Tailwinds

  • Achieving highly profitable operating results over the long term.
  • Ensuring balance sheet strength for the primary needs of the insurance subsidiaries' underwriting and related services business.
  • Favorable underwriting results over cycles.
  • Maintenance of financial soundness.
  • Focus on long-term performance trends.

Headwinds

  • Uncertainty of ultimate benefit and claim costs.
  • Short reporting time frames do not comport well with the long-term nature of much of its business.
  • Market competition affecting General Insurance segment.
  • Changes in national and regional housing demand and values affecting Title Insurance and RFIG Run-off results.
  • Exposure to 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 Q4 2021

Historical avgQ4 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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