Overview

• U.S. specialty insurer's Q1 net income rose 34.7% yr/yr, but net operating income declined

• Q1 net premiums and fees earned grew 7.1% yr/yr

• Company returned $237.5 mln to shareholders via dividends and buybacks

Outlook

• Old Republic targets combined ratios of 90%-95% for Specialty and Title Insurance over underwriting cycles

• Company expects Everett Cash Mutual Insurance Co. acquisition to close early in Q3 2026

• Company says ongoing investments in IT and start-up operations may elevate expense ratios near term

Result Drivers

• SPECIALTY INSURANCE EXPENSES - Higher expenses and lower favorable prior year loss reserve development reduced Specialty Insurance underwriting income

• PREMIUM AND FEE GROWTH - Net premiums and fees earned rose in both Specialty and Title Insurance, driven by premium rate increases, new business, and strong commercial production

• HIGHER INVESTMENT INCOME - Net investment income increased due to a higher invested asset base and higher yields

Company press release: ID:nPn3fX3w8a

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Net Income		$330 mln
Q1 Combined Ratio		96.60%

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the property & casualty insurance peer group is "buy"

• Wall Street's median 12-month price target for Old Republic International Corp is $38.00, about 9.7% below its April 22 closing price of $42.07

• The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 12 three months ago

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