OLD REPUBLIC REPORTS RESULTS FOR THE THIRD QUARTER AND FIRST NINE MONTHS OF 2024
CHICAGO, Oct. 24, 2024 /PRNewswire/ --
OVERALL RESULTS
Quarters Ended September 30,
Nine Months Ended September 30,
2024
2023
% Change
2024
2023
% Change
Pretax income
$ 426.9
$ 63.9
$ 939.0
$ 510.0
Pretax investment gains (losses)
197.7
(186.9)
224.3
(191.1)
Pretax income excluding investment gains (losses)
$ 229.2
$ 250.8
(8.6) %
$ 714.7
$ 701.2
1.9 %
Net income
$ 338.9
$ 52.6
$ 747.6
$ 408.0
Net of tax investment gains (losses)
156.1
(147.6)
177.6
(151.0)
Net income excluding investment gains (losses)
$ 182.7
$ 200.2
(8.7) %
$ 570.0
$ 559.0
2.0 %
Combined ratio
95.0 %
91.9 %
94.3 %
92.4 %
PER DILUTED SHARE
Quarters Ended September 30,
Nine Months Ended September 30,
2024
2023
% Change
2024
2023
% Change
Net income
$ 1.32
$ 0.19
$ 2.81
$ 1.42
Net of tax investment gains (losses)
0.61
(0.53)
0.67
(0.53)
Net income excluding investment gains (losses)
$ 0.71
$ 0.72
(1.4) %
$ 2.14
$ 1.95
9.7 %
SHAREHOLDERS' EQUITY (BOOK VALUE)
Sep. 30,
Dec. 31,
2024
2023
% Change
Total
$ 6,445.3
$ 6,410.7
0.5 %
Per Common Share
$ 25.71
$ 23.31
10.3 %
________
All amounts in this report are stated in millions except where noted, common stock data, and percentages.
Old Republic International Corporation (NYSE:ORI) today reported pretax income, excluding investment gains (losses) (pretax operating income), of $229.2 for the quarter and $714.7 for the first nine months. General Insurance pretax operating income declined 8.5% for the quarter and increased 4.6% for the first nine months. Title Insurance pretax operating income improved 7.5% for the quarter, bringing the first nine months essentially flat with the prior year.
Summarized results for the quarter follow:
Net operating income per diluted share of $0.71, compared to $0.72 last year.
Consolidated net premiums and fees earned increased 9.6%, from strong growth in General Insurance and moderate growth in Title Insurance.
Net investment income increased 17.3%, driven by higher investment yields.
Consolidated combined ratio of 95.0%, up 3.1 points over last year, reflecting lower levels of favorable loss reserve development.
Favorable loss reserve development of 1.3 points, compared to last year's historically high level of 4.5 points.
Total capital returned to shareholders during the quarter of $232, including repurchases of $165.
Book value per share of $25.71 was up 13.7% since year-end 2023, inclusive of dividends, driven by operating income and increased investment valuations.
Old Republic's business is managed for the long run. In this context management's key objectives are to achieve highly profitable operating results over the long term, and to ensure balance sheet strength for the insurance underwriting subsidiaries' obligations. Therefore, the evaluation of periodic and long-term results excludes consideration of all investment gains (losses). Under Generally Accepted Accounting Principles (GAAP), however, net income, inclusive of investment gains (losses), is the measure of total profitability.
In management's opinion, the focus on income excluding investment gains (losses), also described herein as operating income, provides a better way to analyze, evaluate, and establish accountability for the results of the insurance operations. The inclusion of realized investment gains (losses) in net income can mask trends in operating results because such realizations are often highly discretionary. Similarly, the inclusion of unrealized investment gains (losses) in equity securities can further distort such operating results with significant period-to-period fluctuations.
FINANCIAL HIGHLIGHTS
Quarters Ended September 30,
Nine Months Ended September 30,
SUMMARY INCOME STATEMENTS:
2024
2023
% Change
2024
2023
% Change
Revenues:
Net premiums and fees earned
$ 1,929.2
$ 1,760.1
9.6 %
$ 5,369.3
$ 4,964.1
8.2 %
Net investment income
171.0
145.9
17.3
502.7
423.1
18.8
Other income
43.7
40.9
6.9
133.0
121.0
9.9
Total operating revenues
2,144.0
1,947.0
10.1
6,005.1
5,508.4
9.0
Investment gains (losses):
Realized from actual transactions and impairments
(13.1)
(43.5)
113.1
(13.1)
Unrealized from changes in fair value of equitysecurities
210.8
(143.3)
111.1
(178.0)
Total investment gains (losses)
197.7
(186.9)
224.3
(191.1)
Total revenues
2,341.7
1,760.1
6,229.4
5,317.2
Operating expenses:
Loss and loss adjustment expenses
816.0
663.4
23.0
2,255.0
1,885.2
19.6
Sales and general expenses
1,077.4
1,016.3
6.0
2,975.2
2,867.9
3.7
Interest and other expenses
21.3
16.4
29.9
60.0
54.0
11.1
Total operating expenses
1,914.8
1,696.2
12.9 %
5,290.4
4,807.2
10.1 %
Pretax income
426.9
63.9
939.0
510.0
Income taxes
88.0
11.3
191.4
102.0
Net income
$ 338.9
$ 52.6
$ 747.6
$ 408.0
COMMON STOCK STATISTICS:
Components of net income per share:
Basic net income excluding investment gains (losses)
$ 0.73
$ 0.72
1.4 %
$ 2.18
$ 1.96
11.2 %
Net investment gains (losses):
Realized investment gains (losses)
(0.04)
(0.12)
0.34
(0.04)
Unrealized from changes in fair value of equitysecurities
0.66
(0.41)
0.34
(0.49)
Basic net income
$ 1.35
$ 0.19
$ 2.86
$ 1.43
Diluted net income excluding investment gains (losses)
$ 0.71
$ 0.72
(1.4) %
$ 2.14
$ 1.95
9.7 %
Net investment gains (losses):
Realized investment gains (losses)
(0.04)
(0.12)
0.34
(0.04)
Unrealized from changes in fair value of equity securities
0.65
(0.41)
0.33
