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Old Republic International
(NYSE:ORI)
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Rating:70Outperform
Price Target:
$44.00
▲(3.65% Upside)
Action:Reiterated
Date:10/23/26
ORI scores strongest on valuation (low P/E and high dividend yield). Overall fundamentals are solid with strong revenue/earnings momentum and attractive ROE, but the score is held back by weakened cash-flow quality and higher leverage. Technical indicators are mixed, while the latest earnings call was constructive but flagged profitability and cycle-related pressures (combined ratio, reserve development, and softer-market pricing).
Positive Factors
Premium Growth and Expansion
Premium growth across Specialty Insurance, ECM, and auto warranty indicates expanding platforms rather than reliance on a single established line. Management expects ECM to keep contributing and auto warranty to grow robustly, supporting broader revenue diversification over coming quarters.
Negative Factors
Weaker Cash Generation
The sharp decline in free cash flow and very low cash conversion indicate that recent accounting earnings are receiving less support from internally generated cash. If this persists, ORI may have less flexibility for capital returns, acquisitions, investment, or absorbing adverse claims development.
Read all positive and negative factors
Positive Factors
Negative Factors
Premium Growth and Expansion
Premium growth across Specialty Insurance, ECM, and auto warranty indicates expanding platforms rather than reliance on a single established line. Management expects ECM to keep contributing and auto warranty to grow robustly, supporting broader revenue diversification over coming quarters.
Read all positive factors
Old Republic International (ORI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.58B
Dividend Yield9.31%
Average Volume (3M)1.64M
Price to Earnings (P/E)8.6
Beta (1Y)0.33
Revenue Growth12.13%
EPS Growth29.71%
CountryUS
Employees9,500
SectorFinancial
Sector Strength70
IndustryInsurance - Property & Casualty
Share Statistics
EPS (TTM)4.68
Shares Outstanding241,432,920
10 Day Avg. Volume1,681,440
30 Day Avg. Volume1,643,703
Financial Highlights & Ratios
PEG Ratio0.73
Price to Book (P/B)1.88
Price to Sales (P/S)1.22
P/FCF Ratio9.56
Enterprise Value/Market Cap1.29
Enterprise Value/Revenue1.28
Enterprise Value/Gross Profit2.47
Enterprise Value/Ebitda8.24
Forecast
1Y Price Target
$39.00Price Target Upside-8.13% Downside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)2.98
Revenue Forecast (FY)$9.93B
Old Republic International Business Overview & Revenue Model
Company Description
Old Republic International Corporation (ORI), through its various subsidiary entities, specializes in insurance underwriting and related services, primarily conducting business in the United States and Canada. The company organizes its operations ...
How the Company Makes Money
ORI makes money primarily through (1) insurance underwriting and related fees and (2) investment income on its invested assets (“float”). In its General Insurance segment, the company generates revenue by writing property and casualty coverages (s...
Old Republic International Earnings Call Summary
Earnings Call Date:Oct 22, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jan 28, 2027
Earnings Call Sentiment Positive
The call was broadly constructive, with solid premium growth, favorable title results, capital returns, improving book value, continued auto warranty and ECM expansion, and progress at newer businesses. These positives were tempered by lower consolidated and specialty operating income, higher combined ratios, lower favorable reserve development, legal system abuse affecting liability severity, a one-time $20 million credit charge, softer-market pricing pressure, and uncertainty from elevated mortgage rates.Positive Updates
Positive Book Value Growth and Capital Returns
Book value per share ended the quarter at $24.65, representing a 5.7% increase since year-end including regular dividends. The increase resulted primarily from solid operating earnings and the bargain purchase gain on the ECM acquisition, partially offset by lower bond valuations. Old Republic paid $76 million in dividends and repurchased $114 million of shares during the quarter, followed by another $60 million of repurchases after quarter-end; approximately $460 million remains in the current repurchase program.
Negative Updates
Lower Consolidated Operating Income
Consolidated pretax operating income declined to $227 million from $248 million, while net operating income declined to $181 million from $197 million. Comparable net operating income per share decreased to $0.73 from $0.78.
Read all updates
Q3-2026 Updates
Positive
Negative
Positive Book Value Growth and Capital Returns
Book value per share ended the quarter at $24.65, representing a 5.7% increase since year-end including regular dividends. The increase resulted primarily from solid operating earnings and the bargain purchase gain on the ECM acquisition, partially offset by lower bond valuations. Old Republic paid $76 million in dividends and repurchased $114 million of shares during the quarter, followed by another $60 million of repurchases after quarter-end; approximately $460 million remains in the current repurchase program.
Read all positive updates
Company Guidance
Management said it expects Specialty Insurance to end the year “within our range for the year” and targets combined ratios “between that 90% and 95%, depending on where we're at in the cycle”; during “the next few years of a soft market,” it will work “to not exceed the top end,” with the “softest part of the cycle” targeted at “a 95% or below.” Auto warranty growth is expected to “continue at a robust pace,” ECM will “continue to contribute to top line and bottom line” in “the subsequent quarters,” and auto warranty net annual premium of “$600 million, $700 million in the next few years isn't out of the question and even higher.” Management is “working very hard to try to keep” Specialty’s expense ratio “below 30%,” while title’s long-term objective is “a combined ratio below 95%,” and its new operating-system implementation will continue “through the end of next year.”Old Republic International Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
73
Positive
Cash Flow
57
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 9.67B | 9.09B | 8.23B | 7.26B | 8.08B | 9.34B |
| Gross Profit | 5.02B | 4.58B | 5.21B | 4.68B | 5.66B | 6.94B |
| EBITDA | 1.50B | 1.24B | 1.15B | 850.90M | 952.40M | 2.01B |
| Net Income | 1.14B | 936.10M | 852.70M | 598.60M | 686.40M | 1.53B |
Balance Sheet | ||||||
| Total Assets | 31.59B | 29.86B | 27.84B | 26.50B | 25.16B | 24.98B |
| Cash, Cash Equivalents and Short-Term Investments | 2.65B | 3.23B | 13.70B | 13.38B | 12.69B | 11.40B |
| Total Debt | 2.28B | 1.59B | 1.59B | 1.59B | 1.60B | 3.18B |
| Total Liabilities | 25.50B | 23.93B | 22.22B | 20.09B | 18.99B | 18.09B |
| Stockholders Equity | 6.07B | 5.91B | 5.62B | 6.41B | 6.17B | 6.89B |
Cash Flow | ||||||
| Free Cash Flow | 1.28B | 1.16B | 1.23B | 880.40M | 1.17B | 1.31B |
| Operating Cash Flow | 1.28B | 1.16B | 1.23B | 880.40M | 1.17B | 1.31B |
| Investing Cash Flow | -483.70M | -177.20M | -7.20M | 25.30M | -415.00M | -936.50M |
| Financing Cash Flow | -556.40M | -925.70M | -1.23B | -783.20M | -832.70M | -335.70M |
Old Republic International Technical Analysis
Positive
42.45
Price Trends
40.07
Positive
40.30
Negative
40.08
Positive
Market Momentum
-0.09
Negative
60.19
Neutral
84.77
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ORI, the sentiment is Positive. The current price of 42.45 is above the 20-day moving average (MA) of 38.34, above the 50-day MA of 40.07, and above the 200-day MA of 40.08, indicating a bullish trend. The MACD of -0.09 indicates Negative momentum. The RSI at 60.19 is Neutral, neither overbought nor oversold. The STOCH value of 84.77 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ORI.
Old Republic International Risk Analysis
Old Republic International disclosed 22 risk factors in its most recent earnings report. Old Republic International reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Old Republic International Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $27.16B | 15.65 | 25.14% | 2.53% | 1.45% | -0.85% | |
79 Outperform | $26.65B | 8.16 | 20.89% | 2.13% | 19.55% | 84.05% | |
78 Outperform | $81.76B | 10.30 | 26.24% | 1.18% | 1.07% | 50.02% | |
77 Outperform | $12.38B | 13.07 | 20.01% | 4.75% | -1.43% | 25.53% | |
74 Outperform | $13.10B | 10.60 | 11.99% | 8.07% | 3.41% | 41.13% | |
70 Outperform | $9.58B | 8.57 | 18.74% | 9.31% | 12.13% | 29.71% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
ORI
Old Republic International
40.08
2.73
7.29%
AFG
American Financial Group
153.46
26.66
21.03%
CINF
Cincinnati Financial
178.28
25.99
17.06%
CNA
CNA Financial
49.39
7.52
17.96%
TRV
Travelers Companies
405.44
140.39
52.97%
WRB
W. R. Berkley Corporation
75.55
2.35
3.21%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.