Old Republic International Posts Strong Q4 2024 Results, Continues to Focus on Specialty Insurance Strategy
Old Republic International, a leading provider of insurance and investment products, reported strong fourth-quarter 2024 results, with consolidated pretax operating income reaching $285 million, up from $237 million in the prior year. This marks another successful quarter for the company, which continues to execute its strategy focused on Specialty Insurance.
"We're pleased with our performance in Q4, particularly in our Specialty Insurance segment, where we grew net premiums earned by 13% and produced $228 million of pretax operating income," said Craig Smiddy, President and CEO. "Our conservative reserving practices have continued to produce favorable prior year development, which has contributed to the strong results."
Smiddy noted that despite higher mortgage interest rates and a tight real estate market, the company's Title Insurance segment grew premiums and fees by 9% in the quarter, with pretax operating income reaching $55 million. The combined ratio for the segment was 94.4%, down from 95.5% last year.
Francis Sodaro, Chief Financial Officer, highlighted the company's strong investment performance, with net investment income increasing 10% in the quarter and 16% in the full year. "Our average reinvestment rate on corporate bonds during the year was 4.8%, while the comparable book yield on corporate bonds disposed of was 3.5%," he said.
Old Republic's balance sheet remains strong, with a total bond portfolio book yield now standing at 4.5%, compared to 4% at the end of last year. The company has also returned capital to shareholders through dividends and share repurchases, including a special dividend of $2 per share in the fourth quarter.
"Our focus on Specialty Insurance has been key to our success," said Smiddy. "We continue to invest in new underwriting subsidiaries, technology, and talent, as well as announcing our latest new venture, Old Republic Cyber."
The company's Q4 results demonstrate its commitment to delivering strong performance across all segments, while continuing to execute its long-term strategy focused on Specialty Insurance.
