Old Republic International (NYSE:ORI) Exceeds Q4 CY2025 Expectations

Insurance conglomerate Old Republic International (NYSE:ORI) reported Q4 CY2025 results exceeding the market’s revenue expectations, with sales up 10.8% year on year to $2.39 billion. Its non-GAAP profit of $0.74 per share was 16.2% below analysts’ consensus estimates.

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Company Overview

Founded during the Roaring Twenties in 1923 and weathering nearly a century of economic cycles, Old Republic International (NYSE:ORI) is a diversified insurance holding company that provides property, liability, title, and mortgage guaranty insurance through its various subsidiaries.

Revenue Growth

Insurers earn revenue three ways. The core insurance business itself, often called underwriting and represented in the income statement as premiums earned, is one way. Investment income from investing the “float” (premiums collected upfront not yet paid out as claims) in assets such as fixed-income assets and equities is the second way. Fees from various sources such as policy administration, annuities, or other value-added services is the third. Unfortunately, Old Republic International’s 4.6% annualized revenue growth over the last five years was tepid. This was below our standard for the insurance sector and is a poor baseline for our analysis.

Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. Old Republic International’s annualized revenue growth of 9.8% over the last two years is above its five-year trend, suggesting its demand recently accelerated.

This quarter, Old Republic International reported year-on-year revenue growth of 10.8%, and its $2.39 billion of revenue exceeded Wall Street’s estimates by 2.8%.

Net premiums earned made up 87.4% of the company’s total revenue during the last five years, meaning Old Republic International barely relies on non-insurance activities to drive its overall growth.

Markets consistently prioritize net premiums earned growth over investment and fee income, recognizing its superior quality as a core indicator of the company’s underwriting success and market penetration.

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Book Value Per Share (BVPS)

Insurance companies are balance sheet businesses, collecting premiums upfront and paying out claims over time. The float – premiums collected but not yet paid out – are invested, creating an asset base supported by a liability structure. Book value captures this dynamic by measuring:

• Assets (investment portfolio, cash, reinsurance recoverables) - liabilities (claim reserves, debt, future policy benefits)

BVPS is essentially the residual value for shareholders.

We therefore consider BVPS very important to track for insurers and a metric that sheds light on business quality. While other (and more commonly known) per-share metrics like EPS can sometimes be lumpy due to reserve releases or one-time items and can be managed or skewed while still following accounting rules, BVPS reflects long-term capital growth and is harder to manipulate.

Old Republic International’s BVPS grew at a sluggish 3.1% annual clip over the last five years. BVPS growth has also recently decelerated a bit to 1.8% annual growth over the last two years (from $23.36 to $24.21 per share).

Over the next 12 months, Consensus estimates call for Old Republic International’s BVPS to grow by 8.6% to $24.94, mediocre growth rate.

Key Takeaways from Old Republic International’s Q4 Results

We enjoyed seeing Old Republic International beat analysts’ net premiums earned expectations this quarter. We were also glad its revenue outperformed Wall Street’s estimates. On the other hand, its EPS missed and its book value per share fell short of Wall Street’s estimates. Overall, this was a softer quarter. The stock traded down 3.1% to $41.78 immediately after reporting.

Old Republic International’s earnings report left more to be desired. Let’s look forward to see if this quarter has created an opportunity to buy the stock. We think that the latest quarter is only one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).