Old Republic Posts Strong Q3 Earnings Amid Market Uncertainty
The Old Republic has reported a solid third-quarter performance, with pre-tax operating income reaching $227 million and a combined ratio of 96.1%.
President and CEO Craig Smiddy attributed the success to favorable prior-year reserve development in both specialty insurance and title insurance, reflecting the company's underwriting and reserving discipline.
Specialty insurance saw a 9.7% increase in net premiums earned compared to the same period last year, with pre-tax operating income standing at $204 million. The combined ratio for specialty was 96.0%, slightly up from 94.8% in Q3 2025.
However, Smiddy noted that legal system abuse continues to put pressure on severity loss trends on liability lines of coverage, highlighting the relevance of these trends over competitive environment pressures.
Title insurance experienced a 7.3% growth in net premiums and fees earned compared to Q3 2025, with pre-tax operating income reaching $50 million. The combined ratio for title was 96.1%, comparable to 96.4% last year. Despite the recent increase in mortgage interest rates creating uncertainty regarding transaction volumes, Smiddy emphasized that Old Republic's title business has demonstrated an ability to remain profitable and adapt through various housing and mortgage rate environments.
Chief Financial Officer Frank Sodaro provided further context on investments during the call, stating that net operating income was $181 million for the quarter, with a per-share basis of $0.73 compared to $0.78 last year. Net investment income increased by 1.5% in the quarter, but excluding unique investment charges, it would have risen by around 4%. The average rate on corporate bonds acquired during Q3 2026 was 5.4%, up from about 4.4% rolling off.
Old Republic's annualized operating return on beginning equity remains at 12.1%, and growth in book value per share, including dividends, is 5.7% for the first nine months of the year. The company's long-term underwriting discipline continues to pay off as reflected in favorable prior-year reserve development across various lines of insurance.
As mortgage rates remain a concern for the title business going forward, Smiddy expressed confidence that Old Republic's diversified portfolio and underwriting expertise will help navigate any market shifts. For now, the company appears well-positioned to capitalize on growth opportunities amidst ongoing industry pressures.
