Q2 2024 Old Republic International Corp Earnings Call Transcript
Key Points
- Old Republic International Corp (ORI) reported a significant increase in consolidated pre-tax operating income, rising to $254 million from $227 million in the previous year.
- The General Insurance segment saw a 10% increase in pre-tax operating income, reaching $202.5 million.
- Title Insurance produced $46 million of pre-tax operating income, marking a 32% increase despite headwinds from mortgage interest rates.
- Net operating income for the second quarter was $202 million, up from $180 million last year, with a 20% increase in net investment income.
- ORI continues to return capital to shareholders, paying $70 million in dividends and repurchasing $410 million worth of shares in the quarter.
- The combined ratio for General Insurance increased slightly to 92.4%, indicating higher expenses or losses.
- Title Insurance continues to face challenges from high mortgage rates and a slow real estate market.
- General liability experienced unfavorable development, particularly from accident years prior to 2014.
- The loss ratio for commercial auto increased to 72.3% from 67.5% last year due to lower levels of favorable prior year loss development.
- Despite strong earnings, ORI has not been able to bring down its balance sheet to a more appropriate level, indicating potential overcapitalization.
Thank you for standing by. At this time, I would like to welcome everyone to today's Old Republic International second quarter 2024 earnings conference call. (Operator Instructions)
I would now like to turn the call over to Joe Calabrese with MWW. Joe, please go ahead.
Thank you. Good afternoon, everyone, and thank you for joining us for the Old Republic conference call of second-quarter 2024 results. This morning, we distributed a copy of the press release and posted a separate financial supplement. Both of the documents are available on Old Republic's website at www.oldrepublic.com.
Please be advised that this call may involve forward-looking statements as discussed in the press release and financial supplement dated July 25, 2024. Risks associated with these statements can be found in the company's latest SEC filings.
This afternoon's conference call will be led by Craig Smiddy, President and CEO of Old Republic
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