Old Republic third-quarter net income falls to $243.2 million from $279.5 million

Old Republic International Corporation (ORI) said Thursday in a filing that third-quarter 2026 net income fell to $243.2 million from $279.5 million a year earlier. The specialty insurer also reported lower net operating income, a non-GAAP measure that excludes realized investment gains and losses and a bargain purchase gain.

Here's how the company did:

• Net income: $243.2 million vs. $279.5 million a year earlier
• Net operating income: $181.4 million vs. $196.7 million a year earlier
• Net operating income per diluted share: 73 cents vs. 78 cents a year earlier
• Net income per diluted share: 99 cents vs. $1.11 a year earlier
• Total operating revenues: $2,505.4 million vs. $2,319.6 million a year earlier, up 8.0%

Total operating revenues rose 8.0% from a year earlier. Net premiums and fees earned climbed 8.8% to $2,269.3 million, from $2,086.2 million.

Net investment income rose 1.5% to $185.4 million, from $182.6 million.

Realized investment results moved the other way. The company recorded pretax realized investment losses of $79.9 million, compared with gains of $104.7 million a year earlier.

A bargain purchase gain of $124.9 million came from the company's acquisition of ECM Insurance Group. The acquisition closed effective July 1, 2026, after ECM converted to a stock company in a sponsored demutualization transaction.

The company said ECM's current-period results were accretive to the quarter's operating earnings.

The consolidated combined ratio, which measures losses and expenses as a share of premiums, was 96.1%. That compares with 95.3% a year earlier.

Favorable prior-year loss reserve development was 1.1 points in the quarter, compared with 2.5 points a year earlier.

For the first nine months, net income was $895.6 million, up from $729.0 million. Net operating income fell 11.5% to $538.1 million, from $607.7 million. The nine-month combined ratio was 96.0%, compared with 94.2%.

The release did not include new full-year guidance. It restated targets instead, with combined ratios between 90% and 95% over a full underwriting cycle for both Specialty Insurance and Title Insurance.

Here's how the company's segments did during the quarter:

• Specialty Insurance: net premiums and fees earned of $1,444.6 million, up 9.7%; underwriting income of $58.5 million vs. $69.2 million, down 15.4%; combined ratio of 96.0% vs. 94.8%
• Title Insurance: net premiums and fees earned of $823.3 million, up 7.3%; underwriting income of $32.3 million vs. $27.8 million, up 15.9%; combined ratio of 96.1% vs. 96.4%
• Corporate & Other: pretax operating loss of $27.0 million vs. $5.2 million

Specialty Insurance net premiums written rose 10.5% to $1,636.3 million, from $1,481.1 million. The company said the growth reflects auto warranty programs, which require net premiums written to include the retail selling price of service contracts.

Excluding that write-up, Specialty net premiums written rose 7.1% in the quarter and 4.0% in the first nine months. Net premiums earned rose 8.0% and 4.9% for the same periods.

The company said Specialty's expense ratio for the quarter included a $20 million credit loss, or 1.4 points, from a guaranteed asset protection account. Lower acquisition costs from changes in mix offset part of the charge.

Title Insurance net premiums and fees earned rose 7.3% in the quarter and 9.8% in the first nine months. The company said agency premiums grew strongly, while directly produced premiums were relatively flat because of the interest rate environment.

Commercial premiums made up 23.6% of Title's net premiums earned, compared with 26.4% a year earlier.

The company said Title's loss ratios improved slightly, mainly on higher favorable prior-year reserve development. It said Title has been navigating a difficult real estate environment and continues to strive to bring its ratios into its target range in the near term.

Corporate & Other's pretax operating loss widened to $27.0 million from $5.2 million, as operating expenses rose to $33.6 million from $17.8 million.

Interest and other charges rose 47.2% to $25.5 million, from $17.3 million. The company tied the increase to the May 2026 debt issuance and to transaction costs for closing the ECM acquisition.

The company's $550 million senior notes matured in August 2026 and were repaid with proceeds from $700 million of senior notes issued in May 2026.

The company returned $190.2 million to shareholders in the quarter, including $76.3 million in dividends and $113.8 million in share repurchases. For the first nine months, total capital returned was $565.2 million, including $229.7 million in dividends and $335.4 million in repurchases.

Dividends declared per common share were 31.5 cents in the quarter, up 8.6% from 29 cents a year earlier.

Book value per share was $24.65 at Sept. 30, up 1.8% from $24.21 at Dec. 31, 2025. Including dividends declared, book value per share rose 5.7% since year-end. Total shareholders' equity was $5,875.3 million, compared with $5,914.0 million at year-end.

The release did not disclose headcount changes.