Executive Summary

Q4 operating performance was strong: pretax operating income rose 20% to $285.0M with a 92.7% consolidated combined ratio; non-GAAP diluted net operating EPS was $0.90 vs $0.69 YoY while GAAP diluted EPS was $0.42, depressed by $154.4M in net investment losses (mainly unrealized equity marks) .
Specialty Insurance (formerly General) delivered 13% net premiums earned growth and a 91.8% combined ratio; Title Insurance grew premiums/fees 9% with a 94.4% combined ratio, aided by expense discipline and improving direct activity .
Capital return was a major catalyst: ORI returned $733M in Q4 (including a $2.00/share special dividend paid in Jan-25 and $174M in buybacks), and raised the regular dividend to $0.29/quarter for 2025; ~$205M remained on the repurchase authorization shortly after quarter end .
Management sees 2025 tailwinds: continued profitable Specialty growth (pricing discipline, favorable WC and auto trends), cautious but improving Title order flow, rising NII from higher reinvestment yields, and strategic build-out (launch of Old Republic Cyber) .

What Went Well and What Went Wrong

What Went Well

Specialty Insurance growth and profitability: Q4 net premiums earned +13.3% with segment pretax operating income +17% to $228.0M and a 91.8% combined ratio; management cited strong retention, rate, and new business across commercial auto, property, and GL, plus contributions from new subsidiaries .
Title Insurance improved on revenue and efficiency: Q4 premiums/fees +8.7% and pretax operating income +26% to $55.4M; combined ratio improved ~110 bps to 94.4% on expense management and modest commercial improvements; direct new open orders up 26% YoY .
Net investment income tailwind: NII +9.8% in Q4 (book yield 4.5%; new money ~4.8% on corporates) with portfolio allocated ~84% fixed/short-term and 16% equities, providing steady income leverage .

What Went Wrong

GAAP earnings pressure from investment marks: GAAP diluted EPS fell to $0.42 (from $0.69) as unrealized equity losses drove $154.4M of net investment losses (vs +$0.2M last year), masking solid operating trends .
Lower favorable reserve development vs 2023: Q4 favorable PYD was 2.9 pts (vs 4.7 pts), reflecting normalization; offsets included some unfavorable dev in general liability and transactional risk; ORI exited transactional risk (only ~$19.4M earned in 2024) .
Title still facing mixed end markets: agency-produced revenues were relatively flat for 2024, and commercial was “generally flat” for the year despite a stronger Q4; expense progress helps but macro housing and rates remain watch items .

Financial Results

Year-over-Year (Q4 2023 → Q4 2024)

Metric	Q4 2023	Q4 2024
Net Premiums & Fees Earned ($M)	$1,743.6	$1,941.5
Net Investment Income ($M)	$155.1	$170.3
Total Operating Revenues ($M)	$1,940.8	$2,156.4
Total Revenues ($M)	$1,941.1	$2,002.0
Diluted Net Operating EPS (ex investment gains/losses)	$0.69	$0.90
Diluted GAAP EPS	$0.69	$0.42
Combined Ratio (%)	93.3%	92.7%

Notes: “Total operating revenues” exclude net investment gains/losses (management focus); “Total revenues” include realized/unrealized gains/losses .

Sequential Trend (Q2 2024 → Q3 2024 → Q4 2024)

Metric	Q2 2024	Q3 2024	Q4 2024
Net Premiums & Fees Earned ($M)	$1,797.4	$1,929.2	$1,941.5
Net Investment Income ($M)	$167.4	$171.0	$170.3
Total Operating Revenues ($M)	$2,012.2	$2,144.0	$2,156.4
Diluted Net Operating EPS	$0.76	$0.71	$0.90
Diluted GAAP EPS	$0.35	$1.32	$0.42
Combined Ratio (%)	93.5%	95.0%	92.7%

Segment Breakdown – YoY (Q4 2023 → Q4 2024)

Segment	Metric	Q4 2023	Q4 2024
Specialty Insurance	Net Premiums & Fees Earned ($M)	$1,091.5	$1,237.2
	Segment Pretax Operating Income ($M)	$194.8	$228.0
	Combined Ratio (%)	92.0%	91.8%
Title Insurance	Net Premiums & Fees Earned ($M)	$645.4	$701.6
	Segment Pretax Operating Income ($M)	$43.9	$55.4
	Combined Ratio (%)	95.5%	94.4%

Note: Segment formerly “General Insurance” renamed “Specialty Insurance” effective year-end 2024 .

Segment Breakdown – Sequential (Q3 2024 → Q4 2024)

Segment	Metric	Q3 2024	Q4 2024
Specialty/General	Net Premiums & Fees Earned ($M)	$1,218.5	$1,237.2
	Segment Pretax Operating Income ($M)	$197.3	$228.0
	Combined Ratio (%)	94.0%	91.8%
Title Insurance	Net Premiums & Fees Earned ($M)	$708.5	$701.6
	Segment Pretax Operating Income ($M)	$40.2	$55.4
	Combined Ratio (%)	96.7%	94.4%

Key Performance Indicators (KPIs)

KPI	Q2 2024	Q3 2024	Q4 2024
Favorable PYD (pts)	2.2 pts	1.3 pts	2.9 pts
Book Value per Share ($)	$23.59	$25.71	$22.84
Capital Returned ($M)	$479	$232	$733
Net Investment Income ($M)	$167.4	$171.0	$170.3

Guidance Changes

Metric/Item	Period	Previous Guidance/Status	Current Guidance/Status	Change
Formal Financial Guidance (revenue/margins)	FY25	None provided	None provided; management expects continued profitable growth in Specialty and improving Title trends	Maintained (no formal guide)
Segment Naming	Effective YE 2024	“General Insurance”	Renamed to “Specialty Insurance”	Update
Special Cash Dividend	Q4’24/Jan-25	N/A	$2.00/share; paid Jan 15, 2025	Announced
Share Repurchase Authorization (remaining)	Post-Q4	~ $240M remaining as of Dec 13, 2024	~ $205M remaining shortly after Q4	Lower remaining (usage)
Regular Dividend	2025	$1.06 annualized in 2024	$1.16 annualized (29c/quarter)	Raised

Earnings Call Themes & Trends

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q4 2024)	Trend
Specialty growth & profitability	Q2: Broad growth, strong pricing; combined ratio 92.4% . Q3: Growth continued; combined ratio rose to 94.0% on lower PYD .	Q4: 16% NWPs growth; 91.8% CR; pretax OI $228M .	Improving sequential profitability
Commercial Auto severity & pricing discipline	Q2/Q3: Strong rate increases continuing .	~10% rate increases; comfortable positioning vs peers; continued favorable dev .	Stable discipline
Workers’ Comp trends	Q2/Q3: Rate declines but within expectations .	Frequency declining, severity stable; ~4% rate decreases, still adequate; loss ratio 35.5% in Q4 .	Favorable frequency
Catastrophe exposure	Limited discussion in Q2/Q3.	L.A. wildfire losses estimated $10–$15M; lower CAT-exposed mix than peers .	One-off, contained
Title market dynamics	Q2: +2.1% premiums; CR 95.4% . Q3: +3.5% premiums; CR 96.7% .	+9% premiums; CR 94.4%; direct orders +26% YoY; ~1/3 residential refis .	Gradual improvement
Investment portfolio	Q2/Q3: NII +20%/18% YoY; ~84% fixed .	Book yield 4.5%; new money ~4.8%; ~84% fixed/16% equity; duration steady .	Yield tailwind moderating
Capital management	Q2: $479M returned; Q3: $232M .	$733M in Q4 incl. $2 special dividend; ~$205M buyback capacity remains .	Aggressive returns continue
Technology/strategy	—	Launch of Old Republic Cyber underwriting subsidiary .	Expanding specialty footprint

Management Commentary

“Specialty Insurance net written premiums were up 16% in the fourth quarter… E&S premiums grew by 21% in the quarter and 33% for the year… fourth quarter combined ratio was 91.8%” — Craig Smiddy .
“Net operating income of $227 million… NII increased 10% in the quarter… bond portfolio book yield now 4.5% vs 4% last year” — Frank Sodaro .
“We estimate our ultimate L.A. wildfire losses to be between $10 million and $15 million… we write less CAT-exposed business than most peers” — Craig Smiddy .
“Nearly 1/3 of new residential orders were refinances… direct new open title orders up 26% YoY in Q4… combined ratio improved to 94.4%” — Carolyn Monroe .
“We issued the $2 special dividend… and retained ability to repurchase shares; about $205 million remains on current authorization” — Craig Smiddy .

Q&A Highlights

Growth drivers in GL/property/warranty: New underwriting subsidiaries (e.g., Inland Marine) and E&S channel driving property/GL; auto warranty growth from new agreements offsetting softer home warranty tied to housing .
Commercial auto competitive landscape: ORI has maintained double-digit rate actions since 2018–2019; comfortable with adequacy; peers still catching up amid severity pressure .
Investment portfolio stance: Comfortable at ~84% fixed/16% equities; new money ~4.8% vs portfolio 4.5%; duration/quality steady, liability-matched .
Capital return framework: Special dividend used to right-size excess capital; buybacks remain opportunistic with ~$205M authorization remaining post-quarter .

Estimates Context

Wall Street consensus (S&P Global) for Q4 2024 EPS and revenue was unavailable at the time of analysis due to data access limits; as a result, we cannot quantify beats/misses versus consensus and recommend revisiting when S&P Global data is accessible [Values were not retrievable from S&P Global at the time].

Key Takeaways for Investors

Quality of earnings was solid on an operating basis (operating EPS $0.90; CR 92.7%), with GAAP volatility driven by unrealized equity marks—consistent with ORI’s “operate for the long run” framework that emphasizes operating income excluding investment gains/losses .
Specialty Insurance is executing: mid-teens earned premium growth, sub-92% CR, disciplined pricing (≈10% in commercial auto) and favorable WC/auto developments support continued profitable growth into 2025 .
Title Insurance momentum is building at the margin (direct orders +26% YoY; CR improved to 94.4%), positioning for upside if housing volumes and refis continue to normalize .
NII remains a structural tailwind as reinvestment yields exceed book yields (4.8% vs 4.5%); allocation and duration remain conservative, supporting earnings durability .
Capital return remains a core pillar (Q4 special dividend + buybacks; regular dividend raised 9.4% in 2025), with adequate capital headroom per management and rating-agency-aligned metrics .
Exposure to recent CAT events appears manageable (L.A. wildfire losses estimated at $10–$15M), consistent with a lower CAT-exposed underwriting mix .
Strategic optionality is increasing: launch of Old Republic Cyber and subsequent Title-Qualia tech partnership underscore continued investment in specialty capabilities and technology enablement .

OLD REPUBLIC INTERNATIONAL CORP (ORI)·Q4 2024 Earnings Summary