Old Republic International’s third quarter results beat Wall Street’s revenue and profit expectations, with management attributing the quarter’s performance to strong specialty insurance operations and continued profitability in the Title Insurance segment, despite ongoing challenges in the real estate market. CEO Craig Smiddy highlighted the company’s disciplined underwriting, favorable prior-year reserve development, and higher investment yields as key contributors. The launch of a sponsored demutualization agreement to acquire Everett Cash Mutual was positioned as a strategic move to diversify and strengthen the specialty insurance portfolio.
Is now the time to buy ORI? Find out in our full research report (it’s free for active Edge members).
Old Republic International (ORI) Q3 CY2025 Highlights:
- Revenue: $2.42 billion vs analyst estimates of $2.28 billion (3.5% year-on-year growth, 6.5% beat)
- Adjusted EPS: $0.78 vs analyst estimates of $0.76 (2.2% beat)
- Adjusted Operating Income: $248.3 million vs analyst estimates of $225 million (10.2% margin, 10.4% beat)
- Market Capitalization: $9.35 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Old Republic International’s Q3 Earnings Call
- Gregory Peters (Raymond James) asked about the company’s approach to measuring excess capital and whether there had been a strategic shift. CEO Craig Smiddy clarified that there was no major change and that capital management continues to use multiple risk metrics, with return of capital guided by board discussions.
- Gregory Peters (Raymond James) inquired about the integration and strategic fit of Everett Cash Mutual. Smiddy described ECM as highly complementary, bringing expertise in farm and agricultural insurance with a short-tail risk profile, and emphasized its alignment with the company’s decentralized operating model.
- Gregory Peters (Raymond James) sought an update on regulatory pressures in Title Insurance, particularly outside Texas. President Carolyn Monroe stated the environment remains stable, with no significant new challenges beyond the Texas rate rollback under appeal.
- Jon Paul Newsome (Piper Sandler) questioned the capital implications of the ECM acquisition and whether it might delay capital returns. Smiddy responded that the structure of the demutualization means ECM will be capitalized for growth, with no material impact on Old Republic’s broader capital deployment plans.
- Jon Paul Newsome (Piper Sandler) asked about commercial auto risk trends in light of competitor challenges. Smiddy detailed the company’s proactive rate actions, data-driven underwriting, and conservative reserving practices as differentiators that have supported favorable results in commercial auto.
Catalysts in Upcoming Quarters
In the coming quarters, we will be monitoring (1) the closing and integration progress of the Everett Cash Mutual acquisition and its impact on specialty insurance growth, (2) sustained underwriting discipline and reserve development trends in commercial auto and workers’ compensation, and (3) stabilization in Title Insurance profitability amid ongoing residential market pressures. We will also track management’s capital deployment strategy, including potential special dividends or share repurchases, as a marker of financial flexibility.
Old Republic International currently trades at $38.41, down from $42 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free for active Edge members).
The Best Stocks for High-Quality Investors
Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.