Old Rep Intl Action Forum

$ORI (-0,42 %)

Old Republic International increases its profit in Q3, but misses expectations

Old Republic International announced third quarter earnings that were up from the same period last year, but below Wall Street estimates.

The company's profit amounted to 338.9 million dollars or 1.32 dollars per share. In the third quarter of the previous year, the figure was 52.6 million dollars or 0.19 dollars per share.

Excluding special items, Old Republic International reported adjusted earnings of $182.7 million, or $0.71 per share, for the period.

Analysts had on average expected earnings of 0.73 dollars per share, according to figures from Thomson Reuters. The analysts' estimates generally do not include any special items.

The company's sales rose by 10.1% in the quarter from 1.947 billion US dollars in the previous year to 2.144 billion US dollars.

Old Republic International's earnings at a glance (GAAP):

• Net income (Q3): $338.9 million compared to $52.6 million in the prior year.
• EPS (Q3): USD 1.32 compared to USD 0.19 in the previous year.
• Sales (Q3): USD 2.144 billion compared to USD 1.947 billion in the previous year.

$ORI (-0,42 %) - Old Republic International

The company has announced the implementation of a non-qualified deferral plan for select executives and highly compensated employees effective January 1, 2025. This strategic move, recently announced in a filing with the SEC, is designed to align with Section 409A of the Internal Revenue Code and provide key personnel with a structured option to defer compensation.

The plan allows participants to defer a portion of their compensation while keeping their contributions fully vested at all times. Old Republic International may also elect, at its discretion, to make contributions to participants' accounts, which contributions are subject to adjustments based on hypothetical investment returns or losses. These accounts are designed to function as unfunded and unsecured promises to pay and to position participants as unsecured general creditors on these obligations.

Under the terms of the plan, no participant or beneficiary may post expected payments as collateral, so these indemnities are solely promises to make future payments. The Company has clarified that all funds set aside for this plan remain general, unpledged and unrestricted assets of Old Republic International.

The introduction of this deferred compensation plan is part of Old Republic International's broader effort to manage and align the compensation of its senior executives with tax regulations. It is a common practice for large companies to provide additional financial planning tools to their executive teams and other highly compensated employees.

In other recent news, Old Republic International Corporation reported an increase in its second quarter pre-tax operating income to $254 million from $227 million a year ago.

The General Insurance segment reported a 10% increase in pre-tax operating income, while the Title Insurance segment reported a significant 32% increase. These developments underscore Old Republic's continued investment in technology and new underwriting subsidiaries.

The company expects continued growth and profitability in both insurance segments for the remainder of the year. Old Republic has also returned significant amounts of capital to its shareholders and expects this trend to continue.

While three out of four subsidiaries in the General Insurance sector are not yet profitable due to high costs relative to premium production, the company is making strategic efforts to grow its fee-based business and increase efficiency through investments in technology.

Analysts emphasize the company's conservative approach to claims forecasting and its goal to keep the combined ratio between 90 and 92.5 percent for both insurance segments.

In addition, Old Republic plans to reduce the expense ratio of the title insurance segment by increasing its size and sales. These recent developments indicate that the company is managing its segments effectively and is well positioned for future growth.

Source: https://www.investing.com/

"Dividends you love them or you love them, this regular ka-ching in the "till" just does you good"🥰

Homer Simpson September 17, 2024

Old Republic International Corporation- The stock for Opis? Part 1. here: https://getqu.in/HKAf7p/

Debt

The Net Debt to EBITDA ratio of 2 is solid and shows that Old Republic International is financially well positioned. The available cash is immediately reinvested and can be found in the company's Total Investment. Compared to its competitors, ORI has the best net debt, which underlines the financial stability and efficient management of the capital structure.

ROIC & more

Compared to its competitors $ORI (-0,42 %) Republic International also does not perform particularly well in terms of ROIC (Return on Invested Capital). This puts the company in the midfield, which is somewhat disappointing in view of its other key figures.

Old Republic International's ROE (return on equity) is acceptable, but is the weakest compared to its competitors.

The return on capital employed (ROCE) is average and not one of the top performers.

With a payout ratio of 42%, the company is within the fair range. However, earnings per share (EPS) fluctuate, which has already been explained in detail. In a good year, considerable profits can be made, while in a less successful year, earnings are correspondingly lower. The current dividend yield is just under 3% - a yield that is neither particularly outstanding nor disappointing. On a positive note, however, the dividend per share (DPS) has risen every two years in recent years.

In comparison, earnings per share (EPS) are rather weak, as is the growth rate, which is also unimpressive.

Conclusion

The company is certainly interesting, but there are also some naja aspects. Securing investments through liquidity leaves a lot to be desired and raises numerous questions. One positive aspect is the outstanding gross profit, which indicates good customer relationships and generates immediate profits. However, sales are stagnating and show little growth, while KPIs are disappointing.

While the company is not a bad investment, I don't see a particularly compelling investment case for most people here. Revenue growth remains lacking and any increase would be problematic as it would likely reduce gross profit, which could leave you sitting on a limited customer base. It seems the company is focused on keeping profits high, reducing the number of shares in issue and keeping operations stable in order to pay an acceptable dividend.

Overall, one could say that the shares are suitable for investors who are looking for dividends and expect a normal market yield without having major growth ambitions. Anyone looking for above-average growth is in the wrong place here. A perfect share for @Simpson and @GoDividend those looking to get rich slowly Community.

Old Republic International Corporation- The stock for Opis?

Company presentation: Old Republic International Corporation

Old Republic International Corporation is a leading US insurance company specializing in comprehensive insurance and property solutions. The company emphasizes integrity, quality, service excellence and financial strength. With a history of over 90 years, Old Republic International has earned a first-class reputation for outstanding customer service and fair business practices.

Historical Development

Founded over 90 years ago, Old Republic $ORI (-0,42 %) Republic International has developed into one of the leading players in the insurance industry through steady growth and the establishment of long-term partnerships. These years of experience and solid background have made the company a trusted name in the insurance sector.

Business model

Old Republic International's business model is based on providing responsible and sustainable insurance and real estate solutions. The company aims to create equal value for its shareholders, employees and customers while generating stable returns. Old Republic International takes a customer-oriented approach and places particular emphasis on long-term relationships and financial stability.

Core competencies

Old Republic International is characterized by the following core competencies:

• Integrity and Quality: The company is known for its high standards of integrity and quality in all areas of its business.
• Excellent customer service: Old Republic International has earned a reputation for outstanding customer service, resulting in long-lasting customer relationships.
• Financial Strength: The company's solid financial stability is one of its greatest strengths, enabling it to reliably meet its obligations to customers and shareholders.

Future prospects and strategic initiatives

Old Republic International strives to continue to meet high expectations of financial stability and trust. To further strengthen its position in the insurance industry, the company plans to capitalize on new growth opportunities. Strategic initiatives could include entering new markets, introducing innovative products and services and increasing operational efficiency. These measures should help to achieve the strategic goals and strengthen the company's market position in the long term.

Insider shareholdings

- Arnold Levy Steiner: 0.25%

- Craig Richard Smiddy: 0.07%

- Rande Keith Yeager: 0.06%

- Stephen Joseph Oberst: 0.06%

- Spencer LeRoy: 0.04%

- Stephen Robert Walker: 0.03%

- William Todd Gray: 0.03%

- Thomas Andrew Dare: 0.02%

- Francis Joseph Sodaro: 0.02%

- Jeffrey Patrick Lange: 0.02%

- Carolyn Jean Monroe: 0.01%

- Steven James Bateman: 0.01%

- John Maynard Dixon: 0.01%

- Fredricka Taubitz: 0.01%

- Glenn W. Reed: 0.01%

- Charles James Kovaleski: 0.01%

- Lisa Jeffries Caldwell: 0%

- Michael Denard Kennedy: 0%

- Peter Boyd McNitt: 0%

- Barbara Ann Adachi: 0%

This means that the insiders of Old Republic International Corporation only hold a total of around 0.66% of the shares in the company. But this is hardly surprising for an older company. However, this means that nobody has "skin in the game".

Margins top of the notch

Compared to other insurance companies, Old Republic International Corporation (ORI) has an exceptional gross margin. At 62.95%, this is more than twice as high as the next best competitor and illustrates how efficiently the company is managed and how profitable its customer relationships are.

Sales development

Old Republic International Corporation's sales are currently stagnating at around USD 7 billion and are not showing any significant growth. Growth rates are even slightly negative. However, this is not necessarily an alarming sign if the company is simultaneously working more efficiently and retaining high-quality customers. As is usual with insurance companies, the net result also shows a certain stagnation. However, it should be borne in mind that the company would be extremely profitable in years with few claims.

Sales distribution and EBT influence

A look at the distribution of turnover shows that the majority of revenue comes from insurance income, which can be seen as positive. This means that Old Republic International (ORI) is less dependent on interest income or investment gains. A closer look at the sources of income makes it clear that investments are not ORI's core strength.

However, it is important to note that ORI's core business - insurance - is directly profitable. The largest share of EBT (earnings before taxes) also comes from the general insurance segment, which also accounts for the largest share of sales. This shows a solid business structure in which the core business generates profits independently and is not dependent on volatile investment profits.

FCF

Old Republic International's free cash flow (FCF) is positive, which is typical for an insurance company and indicates solid operating activities. However, the cash flow from financing activities is negative every year. This indicates that the company regularly returns capital to shareholders, be it through dividend payments, share buybacks or the repayment of debt.

A closer look shows that the negative cash flow from financing activities is mainly due to share buybacks and dividend payments. This is not necessarily negative, as such measures are aimed at returning value directly to shareholders. This aspect can therefore be considered largely unproblematic.

This strategy indicates that ORI pursues a conservative financial policy and strives to continuously provide value to its shareholders, even if the company uses external sources of financing.

Part 2:https://getqu.in/i9RpER/

$PGR (-3,02 %)
$ALV (-0,03 %)
$CB (+0,37 %)
$CS (+1,58 %)
$ALL (-0,71 %)

That's how I like it. Receive one dividend

and the next one from $ORI (-0,42 %) announces itself⏬

$ORI (-0,42 %) announced today that its Board of Directors has declared a regular quarterly cash dividend of 26.5 cents per share. This dividend will be paid on September 16, 2024 to shareholders of record on September 6, 2024. Subject to quarterly board approval, the full year cash dividend will be $1.06 per share, compared to 98 cents per share in 2023, an increase of 8.2%.

2024 marks the 43rd consecutive year that Old Republic has increased its regular cash dividend and the 83rd year of uninterrupted regular cash dividend payments.

https://ir.oldrepublic.com/news/news-details/2024/OLD-REPUBLIC-DECLARES-THIRD-QUARTER-REGULAR-CASH-DIVIDEND-OF-26.5-CENTS-PER-SHARE/default.aspx

Even with $ORI (-0,42 %) I couldn't resist the numbers. 😁

Greetings to @Simpson and @GoDividend

Even though I turned my back on you at $UKW (-3,17 %) have turned my back on you, we always meet a second time. 😅

$ORI (-0,42 %) US6802231042

Old Republic Intl Corp. second quarter earnings per share of $0.76 beat analysts' estimates of $0.64. Revenue of $2.01 billion beat expectations of $1.92 billion.

The complete figures

https://ir.oldrepublic.com/news/news-details/2024/OLD-REPUBLIC-REPORTS-RESULTS-FOR-THE-SECOND-QUARTER-AND-FIRST-HALF-2024/default.aspx

@Simpson the thing purrs silently but in one direction 📈

My last ride is leaving the depot - the end is over

Why? -with @DividendenWaschbaer I had already discussed

Main reason

• my position was 10% below equity when I sold (dividends mitigated the loss)
• my assumption that the interest rate cuts would have a positive effect did not materialize
• now my thought is that the interest rate cuts will come much slower than I thought a while ago and therefore positions like Vici will take a long time to increase the price level significantly

Furthermore

• I already have a property to rent out, so I already have an investment in the real estate sector (also with leverage)

One more point

Reclassification

by reclassifying every year, my tax-free amount is touched again in the new year * edit incorrect

-> The original profit in the amount of EUR *** is entered as a loss in the general loss offsetting pot. Reversal due to reclassification of US income. Re-settlement follows and is offset against this loss pool (thanks Wasschbär)

the topic in detail:

CCF contributions

https://getqu.in/LjsdiK/

🏅Riding cancelations

Now of course you can say - you know all that beforehand, right! that's why I'm writing this so that others know beforehand :-)

I used the capital from the sale for $ORI (-0,42 %) (position now at desired size) and $HSBA (+0,93 %)

@Simpson sorry :-)

but also think of advance lump sum for Reits ;-)

No news - good news

What news can you find?

Exceeds profit expectations and share buyback program

Perfect, runs along silently

Next quarterly figures on 25.07.

Soon this position will also be "full" and then the hammock will be waiting here too