Old Republic’s third-quarter results were mixed, with operating income and EPS below the year-ago quarter, partly reflecting a higher combined ratio and less favorable reserve development. Shares were essentially flat after earnings, down 0.1%.
- Net operating income was $181 million, or $0.73 per share, versus $197 million and $0.78 a year earlier; pretax operating income was $227 million versus $248 million.
- The consolidated combined ratio rose to 96.1% from 95.3%. Favorable reserve development contributed 1.1 points, compared with 2.5 points a year earlier.
- Specialty net premiums earned grew 9.7%, but net premiums written were up 4.4% excluding ECM and the write-up portion of auto warranty. Specialty pretax operating income fell to $204 million from $208 million, and its combined ratio increased to 96% from 94.8%.
- Title premiums and fees earned rose 7.3%; pretax operating income increased to $50 million from $46 million, with the combined ratio improving to 96.1% from 96.4%. Management cited higher mortgage rates as a source of uncertainty for transaction volumes.
- Book value per share, including regular dividends, increased 5.7% since year-end. The company repurchased $114 million of shares during the quarter and another $60 million afterward.
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