Old Republic Q2 Revenue Jumps 18 Percent

Key Points

• - Non-GAAP earnings per share came in at $0.83 for Q2 2025, up 9.2% from Q2 2024, topping the $0.81 estimate

• - Revenue was $2,208.5 million, beating consensus by $37.9 million and rising 18.0% year over year.

• - Specialty Insurance showed double-digit premium growth and improved profitability, while Title Insurance saw margins compress due to higher expenses.

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Old Republic International (NYSE:ORI), a diversified insurance company with roots in property and casualty as well as title insurance, reported its second quarter earnings on July 24, 2025. The headline news was a beat on both revenue and profit: non-GAAP earnings per share rose to $0.83, above analyst expectations of $0.81 (non-GAAP), and total revenue (GAAP) reached $2,208.5 million, compared to the $2,177.9 million consensus. These results were also well ahead of last year’s comparable period. The period was marked by standout growth in the core Specialty Insurance unit, some pressures in Title Insurance expenses. Overall, the quarter was a further sign of steady execution by the company and a continuation of its recent track record of modestly surpassing expectations.

Source: Analyst estimates for the quarter provided by FactSet.

Understanding Old Republic International’s Business

Old Republic International operates mainly through two large segments: Specialty Insurance, which provides commercial insurance coverage like auto, general liability, property, and workers’ compensation, and Title Insurance, which covers the risks involved in real estate transactions. The company’s core approach is built on disciplined underwriting, or choosing and pricing risks carefully, and holding a large, mostly conservative investment portfolio to back up its insurance promises.

Recently, the company has focused on driving growth in the Specialty Insurance segment. It does this through premium rate increases, gaining more new business, and starting new underwriting subsidiaries. Key success factors for the business include managing risk effectively, keeping expense growth in check, and striking a balance between growing premium income and maintaining sound underwriting. Managing costs and improving efficiency, especially in Title Insurance, are areas the company has said it will continue to address.

Quarter in Review: Financial and Segment Highlights

Earnings per share (non-GAAP) landed at $0.83, a 9.2% increase over Q2 2024, and a 2.48% upside compared to the analyst consensus. Revenue also beat expectations by $37.9 million, reflecting strong growth in insurance premiums as well as gains from investment income. Operating return on equity reached 14.6% on an annualized basis, underscoring the company’s ability to generate returns on shareholder capital.

The Specialty Insurance segment led the way again, with net premiums earned climbing 14.6% to $1,294.5 million (GAAP). Several factors powered this, including premium rate hikes, high renewal rates, new business wins, and contributions from recently launched underwriting subsidiaries. Commercial auto insurance, in particular, saw standout growth. At the same time, areas such as Canadian travel and accident policies and public directors and officers (D&O) coverage reported some declines, mainly reflecting market-specific issues. Underwriting income for Specialty Insurance jumped about 41% year over year, while the combined ratio, which measures claim and expense costs as a percentage of premiums, improved to 90.7% from 92.4%. This shows the segment wrote profitable business while keeping losses and costs in check. Net investment income for Specialty Insurance totaled $149.9 million, up 12.8%, benefiting from higher yields and a bigger base of invested assets.

Title Insurance delivered net premiums and fees earned of $697.8 million, up 5.2% year over year, with commercial premiums making up 23% of the total, compared to 21% for Q2 2024. However, this unit struggled with higher expenses: the combined ratio spiked to 99.0% from 95.4% in Q2 2024, while underwriting income dropped sharply. A large part of the rise in the expense ratio during the quarter and the first half of 2025 was due to about $15 million in litigation settlement costs and increased commissions related to a shift from direct to agency business. Fee income from direct operations shrank as a result of the previously announced sale of certain technology platforms. Profitability in Title Insurance (pretax operating income) fell 47% compared to a year ago.

The Corporate & Other segment, a small portion of the business, reported a significant drop in investment income and an operating loss. This reflected a smaller investment asset base following the return of capital to shareholders earlier in the year and the wind-down of the RFIG (run-off mortgage guaranty) business in 2024. This segment continues to be a drag on overall profits, but it forms only a minor part of group results.

Across the business, the consolidated combined ratio was 93.6%. In insurance, a combined ratio below 100 % signals profitable underwriting, as the company is collecting more in premiums than it pays out in claims and expenses. The loss ratio, which captures claims paid as a share of premiums, was helped by positive development from old claims in workers’ compensation and property insurance. However, some areas, especially general liability in Specialty and fast-rising expenses in Title Insurance, require attention.

On dividends, the company raised its regular quarterly payout 5% to $0.29 per share. In addition, it paid a special $2.00 per share cash dividend in January 2025, returning approximately $500 million to shareholders. Total capital returned during the quarter reached $71.8 million, and $165.4 million was returned in the first half of 2025, split between dividends and share repurchases. Recent management commentary noted the decision to balance returning excess capital with reinvesting for new growth.

Key Products and Initiatives Explained

Specialty Insurance offers a range of commercial insurance products, including commercial auto (for company vehicles), general liability (coverage for injuries or property damage to others), property insurance (protecting business assets), and workers’ compensation (covering workplace injuries). Title Insurance provides insurance to real estate buyers and lenders against problems with property ownership records. Both parts of the business use risk selection and pricing as a key to profitability, and have made recent investments in new underwriting operations and technology partnerships to increase efficiency. The company’s fixed income securities portfolio -- mainly bonds and similar investments -- forms the backbone of its approach to managing risk and generating steady investment returns.

The consolidated investment portfolio was about 84% fixed income and 16% equities as of June 30, 2025. These allocation choices provide safety and stable income, with limited exposure to more volatile or illiquid assets like private equity or derivatives. Net investment income across the business grew modestly, as higher yields offset a slightly reduced capital base following the special dividend.

Looking Ahead and What to Watch

The company did not provide direct financial guidance for the next quarter or the full year, staying consistent with prior practice. Management reiterated its goal of achieving combined ratios between 90% and 95% over a full underwriting cycle for both major segments. For Title Insurance, management expects expense savings from recent technology platform sales to help results by roughly $4 million per quarter, supporting gradual margin improvement.

For those tracking future performance, there are several key trends to monitor. These include ongoing control of loss costs and expenses, especially as new specialty underwriting units scale up; progress in trimming Title Insurance costs and handling litigation and commission outlays; and the effect of capital management decisions after the large special dividend paid in Q1 2025. Corporate & Other will likely stay a source of small losses due to reduced investable capital, while Specialty Insurance is expected to remain the main growth driver as the company pushes into new products and geographies. The quarterly dividend was raised 9.4% to $0.29 per share.

Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.

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