Insurer Old Republic's Q3 net premiums rise, helped by acquisition
Overview
US specialty insurer's Q3 net premiums and fees earned rose 8.8% yr/yr
Q3 net operating income per diluted share fell 6% yr/yr
Company returned $190.2 mln to shareholders, including $113.8 mln in share repurchases
Outlook
Company targets Specialty Insurance combined ratios between 90% and 95% over a full underwriting cycle
Old Republic aims for Title Insurance combined ratios between 90% and 95% over a full underwriting cycle
Company says Title Insurance segment continues to face a difficult real estate environment
Result Drivers
PREMIUM GROWTH - Co said Q3 net premiums earned rose due to premium rate increases, new business production, and acquisition of ECM Insurance Group
UNDERWRITING RATIOS - Specialty Insurance segment loss ratios increased due to lower favorable prior year loss reserve development, partially offset by improved current year loss ratios
EXPENSES - Co said expense ratios reflect investments in start-up operating companies, IT modernization, data and analytics, and higher personnel costs
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Net Income | $243.2 mln | ||
Q3 Combined Ratio | 96.1% |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the property & casualty insurance peer group is "hold."
Wall Street's median 12-month price target for Old Republic International Corporation is $39.00, about 2.8% below its October 21 closing price of $40.13
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 12 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)