Q3 2024 Old Republic International Corp Earnings Call Transcript
Key Points
- Old Republic International Corp (ORI) reported a strong balance sheet, returning capital to shareholders through dividends and share repurchases.
- Net investment income increased by 17% in the quarter, driven by higher yields on the bond portfolio.
- General insurance net written premiums were up 16% in the quarter, with strong renewal retention rate increases and new business growth.
- The company is on track to produce its 10th consecutive year of favorable loss reserve development.
- Title insurance saw a 4% increase in premium and fee revenue compared to the third quarter of last year, with direct new title orders up 11%.
- Consolidated pretax operating income decreased to $229 million from $251 million in the previous year.
- The combined ratio for general insurance increased to 94 from 89 last year, reflecting lower favorable prior year loss reserve development.
- Title insurance faced headwinds due to high mortgage interest rates and a tight real estate market.
- Unfavorable development of around $25 million was recorded within financial indemnity, primarily related to transactional risks.
- The expense ratio for title insurance remained high at 94%, consistent with the previous year, indicating ongoing cost pressures.
Good afternoon. My name is Audra, and I will be your conference operator today. Welcome everyone to the Old Republic International third quarter, 2024 earnings conference call. Today's conference is being recorded. (Operator Instructions)
At this time, I would like to turn the conference over to Joe Calabrese with FRB. Please go ahead.
Thank you. Good afternoon, everyone, and thank you for joining us for the Old Republic conference call to discuss third 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 October 24, 2024. Risk associated with these statements can be found in the company's latest SEC filings.
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