Old Republic's Third-Quarter Operating Profit Falls

The Tip Desk · October 22, 2026 · 3 min read

Net operating income was $181.4 million, or $0.73 a share, as the combined ratio widened to 96.1%.

Old Republic International (ORI), a specialty property-and-casualty and title insurer, reported net operating income of $181.4 million, or $0.73 a share, for the third quarter, down from $186.0 million, or $0.76 a share, in the second quarter.

The sequential decline followed a rise from $170.5 million in the first quarter. The company said net operating income excludes net investment gains and losses and a bargain purchase gain.

GAAP net income attributable to shareholders was $243.2 million, or $0.99 a share, compared with $279.5 million, or $1.11 a share, a year earlier. The quarter included a $124.9 million bargain purchase gain on the ECM Insurance Group acquisition and a $63.2 million net realized investment loss.

Consolidated net premiums and fees earned were $2.27 billion, up 8.8% from $2.09 billion a year earlier. The consolidated combined ratio widened to 96.1% from 95.3% a year earlier. Favorable loss reserve development was 1.1 points, compared with 2.5 points a year earlier. Annualized operating return on equity was 12.1%.

Specialty Insurance, the larger of the two reportable segments, earned $1.44 billion of net premiums, up 9.7% from a year earlier. Excluding the write-up of certain auto warranty programs to retail selling prices, earned premium growth was 8.0%. The company said quarter growth was driven by premium rate increases, new business production, including an increasing contribution from start-up operating companies, and the ECM acquisition, which closed July 1, 2026.

Specialty underwriting income fell 15.4% to $58.5 million. Segment pretax operating income declined 1.8% to $203.9 million. The Specialty combined ratio was 96.0%, versus 94.8% a year earlier; excluding the auto warranty write-up it was 95.9%, versus 94.7%. The company said Specialty combined ratios between 90% and 95% are targeted over a full underwriting cycle.

The Specialty loss ratio was 64.0%, including 0.8 points of favorable prior-year development. Excluding the auto warranty write-up, the company said loss ratios increased on a lower level of favorable prior-year development, partially offset by an improvement in current-year loss ratios. Favorable development was recognized in property, commercial auto, and workers’ compensation, partially offset by unfavorable development in general liability and financial indemnity. The expense ratio included a $20 million credit loss, or 1.4 points, from a guaranteed asset protection account.

Title Insurance net premiums and fees earned rose 7.3% to $823.3 million. Segment pretax operating income increased 10.1% to $50.4 million. The Title combined ratio improved to 96.1% from 96.4% a year earlier, with a total loss ratio of 2.1%. The company said agency premiums experienced strong growth while directly produced premiums were relatively flat as a result of the interest rate environment. Commercial premiums represented 23.6% of Title net premiums earned, versus 26.4% a year earlier. Title combined ratios between 90% and 95% are targeted over a full underwriting cycle.

Corporate & Other pretax operating loss widened to $27.0 million from $5.2 million a year earlier, with operating expenses of $33.6 million. The company said 2026 expenses include higher interest costs from a May 2026 debt issuance and transaction costs related to the ECM closing.

Book value per share was $24.65 at September 30, 2026, down from $25.33 at June 30. Total capital returned to shareholders in the quarter was $190.2 million, including $113.8 million in share repurchases and $76.3 million in dividends.