benzinga144d ago
CHICAGO, Jan. 22, 2026 /PRNewswire/ -- Old Republic International Corporation (NYSE:ORI) today reported the following results for the fourth quarter 2025:Net income of $206.3 million, compared to $105.1 million last year.Net income excluding investment gains (losses) (net operating income) of $184.7 million, compared to $227.0 million last year.Net operating income per diluted share of $0.74, compared to $0.90 last year.Consolidated net premiums and fees earned of $2.1 billion, an increase of 9.8% over last year.Net investment income of $183.8 million, an increase of 7.9% over last year.Consolidated combined ratio of 96.0%, compared to 92.7% last year.Favorable loss reserve development of 2.4 points, compared to 2.9 points last year.Book value per share of $24.21, inclusive of cash dividends declared, up 22.0% since year-end 2024.Operating return on beginning of year equity of 14.1%.Total capital returned to shareholders of $742 million.Dollar amounts (other than per share amounts) are presented in millions, except as otherwise indicated. OVERALL RESULTS ATTRIBUTABLE TO SHAREHOLDERSQuarters Ended December 31,Years Ended December 31,20252024% Change20252024% ChangeNet income$ 206.3$ 105.1$ 935.4$ 852.7Net of tax investment gains (losses)21.5(121.9)142.855.7Net income excluding investment gains (losses)$ 184.7$ 227.0(18.6) %$ 792.5$ 797.0(0.6) %Combined ratio96.0 %92.7 %94.7 %93.9 %PER DILUTED SHARE ATTRIBUTABLE TO SHAREHOLDERSQuarters Ended December 31,Years Ended December 31,20252024% Change20252024% ChangeNet income$ 0.82$ 0.42$ 3.72$ 3.24Net of tax investment gains (losses)0.08(0.48)0.570.21Net income excluding investment gains (losses)$ 0.74$ 0.90(17.8) %$ 3.15$ 3.034.0 %SHAREHOLDERS' EQUITY (BOOK VALUE)Dec. 31, Dec. 31,20252024% ChangeTotal$ 5,914.0$ 5,618.95.3 %Per common share$ 24.21$ 22.846.0 %Old Republic's business is managed for the long run. In this context, management's key objectives are to achieve highly profitable operating results over the long term, and to ensure balance sheet strength for the operating companies' obligations. Although Generally Accepted Accounting Principles (GAAP) uses net income as the measure of total profitability, management uses net income excluding net investment gains (losses) (net operating income), a non-GAAP financial measure, in its evaluation of periodic and long-term results.In management's opinion, excluding investment gains (losses) from income provides a better way to analyze, evaluate, and establish accountability for the results of the insurance operations. The inclusion of realized investment gains (losses) in net income can mask trends in operating results because such realizations are often highly discretionary. Similarly, the inclusion of unrealized investment gains (losses) in equity securities can further distort such operating results with significant period-to-period fluctuations that are unrelated to the insurance operations. Net operating income, however, does not replace GAAP net income as a measure of total profitability.FINANCIAL HIGHLIGHTSQuarters Ended December 31,Years Ended December 31,SUMMARY INCOME STATEMENTS:20252024% Change20252024% ChangeRevenues: Net premiums and fees earned$ 2,130.8$ 1,941.59.8 %$ 8,052.9$ 7,310.810.1 %Net investment income183.8170.37.9708.7673.15.3Other income47.444.56.4194.9177.69.8 Total operating revenues2,362.12,156.49.58,956.68,161.69.7Net investment gains (losses):Realized from actual transactions andimpairments173.0(24.2)202.088.8Unrealized from changes in fair value of equity securities(145.7)(130.1)(22.3)(18.9)Total net investment gains (losses)27.2(154.4)179.769.9Total revenues2,389.42,002.09,136.38,231.5Operating expenses:Loss and loss adjustment expenses912.0792.915.03,377.33,048.010.8Underwriting, acquisition, and other expenses1,196.71,061.112.84,504.54,036.411.6Interest and other expenses17.417.21.270.377.3(9.0) Total expenses2,126.21,871.313.6 %7,952.37,161.711.0 %Pretax income263.1130.61,184.01,069.7Income taxes55.925.5242.1216.9Total net income207.2105.1941.9852.7Net income attributable to noncontrolling interests0.8—6.5—Net income attributable to shareholders$ 206.3$ 105.1$ 935.4$ 852.7COMMON STOCK STATISTICS:Components of net income per share:Basic net income excluding investment gains (losses)$ 0.75$ 0.92(18.5) %$ 3.23$ 3.094.5 %Net investment gains (losses):Realized investment gains (losses)0.56(0.08)0.650.27Unrealized from changes in fair value of equity securities(0.47)(0.41)(0.06)(0.06)Basic net income$ 0.84$ 0.43$ 3.82$ 3.30Diluted net income excluding investment gains (losses)$ 0.74$ 0.90(17.8) %$ 3.15$ 3.034.0 %Net investment gains (losses):Realized investment gains (losses)0.54(0.07)0.630.27Unrealized from changes in fair value of Full story available on Benzinga.com
