Old Republic International Corp. $ORI (-0,74%)
reported mixed results for the first quarter of 2026, with both earnings per share (EPS) and revenue falling short of analyst expectations. The company reported EPS of $0.68, below the forecast of $0.80 and a negative surprise of 15%. Turnover reached USD 2.2 billion, missing the forecast by 3.08%.
Key messages
Old Republic's earnings per share (EPS) for Q1 2026 missed expectations by 15%.
Sales fell 3.08% short of the forecast at USD 2.2 billion
Book value per share increased by 2.6% since the end of 2025
The title insurance segment showed strong growth with a 12% increase in sales.
Business development of the company
Old Republic's overall performance in the first quarter of 2026 pointed to challenges, which was reflected in a significant decline in the operating result and increased underwriting pressure. The consolidated operating pre-tax result fell by 16.3% compared to the same period of the previous year. The company's combined ratio deteriorated, reflecting higher costs and pressure on profit margins.
Result compared to forecast
Old Republic's actual earnings per share of USD 0.68 were below the forecast of USD 0.80, which corresponds to a shortfall of 15%. At USD 2.2 billion, sales also fell short of expectations of USD 2.27 billion. These results represent a setback for the company, which has already faced similar challenges in previous quarters.
Outlook and forecast
For the remainder of 2026, Old Republic expects moderate premium growth of 3-5%. The company aims to reduce its expense ratio to below 30% once the technology investments pay off. The expected completion of the ECM acquisition by July 2026 is expected to contribute positively to future results.
Management commentary
CEO Craig Smiddy stated: "Our focus remains on maintaining underwriting discipline and achieving risk-adequate premiums." He emphasized the company's commitment to long-term growth through strategic investments in technology and new operating companies.
Risks and challenges
Underwriting pressure: Increased costs and a deteriorating combined ratio pose risks to profitability.
Market volatility: Fluctuations in the share price and the general market situation could affect investor confidence.
Economic factors: Rising interest rates and inflationary pressure can affect financial performance.
Competitive environment: Maintaining competitive prices and responding to market trends are critical in a challenging market environment.