680223AF1 Filings — Old Republic International Corp - FilingSpy
680223AF1
Old Republic International Corp
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A specialty insurer that protects people in two very different ways: it underwrites commercial coverage like trucking and liability policies for businesses, and it's one of the largest U.S. title insurers, verifying property ownership so home and commercial real estate deals close safely. Founded in 1923 as the Garfield Casualty Company, it took the name "Old Republic" in 1930 to evoke tradition and stability, though its title arm traces back to 1907. Its corporate mantra is "Managing for the long run," a nod to its habit of judging performance over decades rather than quarters.
Specialty Insurance underwriting income fell 50.5% as transactional risk reserves developed unfavorably, but Title Insurance more than doubled its profit.
Specialty Insurance underwriting profit halved, but Title Insurance more than doubled its own. rose 13.4% to $2.50 billion and climbed 61.7% to $1.31, driven by a swing in net investment gains to a $42 million gain from a $42 million loss a year ago. The quarter leaves Old Republic with a growing Title business and a Specialty absorbing a one-time reserve charge.
Key takeaways
Specialty Insurance underwriting income fell 50.5% to $59.3 million, driven by $40 million of unfavorable development in transactional risk within financial indemnity and elevated expenses from start-up companies and IT modernization.
Title Insurance pretax more than doubled to $55.9 million, benefiting from strong commercial premiums, which represented 25.4% of earned premiums, and improved expense that brought the down to 95.1% from 99.0%.
Section summaries
Management's Discussion and Analysis
Consolidated net premiums and fees earned rose 5.2% to $2.1B in Q2 2026, but net operating income fell 11.1% to $186.0M on lower favorable loss reserve development and higher expenses.
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Consolidated net premiums and fees earned grew 5.2% to $2.1B, driven by 10.7% growth in Title Insurance and 2.3% growth in Specialty Insurance.
rose 57.7% to $322.3 million, as net investment gains swung to a $42.0 million gain from a $42.0 million loss in Q2 2025 — an $84.0 million reversal that flowed directly through the income statement.
Consolidated net premiums and fees earned grew 5.2% to $2.1 billion, with Title Insurance up 10.7% and Specialty Insurance up 2.3%.
The consolidated rose to 95.3% from 93.6%, as shrank to 0.1 points from 2.1 points a year ago.
The company returned $137.4 million to shareholders in the quarter and expects a roughly $125 million gain from the July 1 acquisition of Everett Cash Mutual Insurance Co.
What changed
The Specialty Insurance weakened, settling the watch item from Q1 2026: underwriting margins did not hold as favorable prior-year reserve development continued to normalize, and the $40 million transactional risk charge added unexpected pressure.
Title Insurance premium growth extended through the spring homebuying season for a second consecutive year, confirming the recovery flagged in Q1 2026, with premiums up 10.7% .
The equity portfolio's realized gain swung to a $42.0 million gain from a $42.0 million loss a year ago, breaking the pattern of quarterly losses that had persisted through much of 2025 and answering the Q1 2026 watch item on whether the gain was a one-quarter event.
activity slowed to $137.4 million in total capital returned, down from the $159.8 million in buybacks alone in Q1 2026, as the company integrated the new $750 million authorization and prepared for the Everett Cash Mutual acquisition.
What to watch
The Specialty Insurance in Q3 2026, to see whether the $40 million transactional risk charge was a one-time event or signals further adverse development in the financial indemnity book.
Title Insurance premium growth in Q3 2026, to gauge whether the 10.7% increase extends beyond the spring homebuying season into the seasonally slower third quarter.
The closing and integration of the Everett Cash Mutual Insurance Co. acquisition, and whether the expected ~$125 million gain materializes in Q3 2026 results.
The equity portfolio's realized gain/loss line in Q3 2026, to determine whether the $42.0 million quarterly gain represents a new run-rate or fluctuates with equity markets.
declined 11.1% to $186.0M as the consolidated rose to 95.3% from 93.6%, reflecting lower favorable prior-year (0.1 points vs. 2.1 points).
Specialty Insurance underwriting income fell 50.5% to $59.3M, largely due to $40M of unfavorable development in run-off transactional risk within financial indemnity and elevated expenses from start-up companies and IT modernization.
Title Insurance pretax more than doubled to $55.9M, benefiting from strong commercial premiums (25.4% of earned premiums) and improved expense , with the improving to 95.1% from 99.0%.
Net investment income increased 6.1% to $182.0M on a higher invested asset base, while the rose to 37.6% following a $700M debt issuance ahead of a $550M maturity.
Total capital returned to shareholders was $137.4M in Q2, and the company expects a ~$125M gain from the July 1, 2026 acquisition of Everett Cash Mutual Insurance Co.
Quantitative and Qualitative Disclosures About Market Risk
Market risk represents the potential for loss due to adverse changes in the fair value of financial instruments as a result of changes in interest rates, equity prices, foreign exchange rates, and commodity prices. Old Republic's primary market risks consist of interest rate ris…
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Market risk represents the potential for loss due to adverse changes in the fair value of financial instruments as a result of changes in interest rates, equity prices, foreign exchange rates, and commodity prices. Old Republic's primary market risks consist of interest rate risk associated with investments in fixed income securities and equity price risk associated with investments in equity securities. The Company has no material foreign exchange or commodity risk.
Old Republic's market risk exposures at June 30, 2026 have not materially changed from those identified in the Company's 2025 Annual Report on Form 10-K.
The information contained in Note 9 "Commitments and Contingent Liabilities" of the Notes to Consolidated Financial Statements filed as Part 1 of this Quarterly Report on Form 10-Q is incorporated herein by reference.
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The information contained in Note 9 "Commitments and Contingent Liabilities" of the Notes to Consolidated Financial Statements filed as Part 1 of this Quarterly Report on Form 10-Q is incorporated herein by reference.