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Insurance conglomerate Old Republic International (NYSE:ORI) in Q2 CY2026, with sales up 13% year on year to $2.50 billion. Its non-GAAP profit of $0.76 per share was 4.2% below analysts’ consensus estimates.
Is now the time to buy Old Republic International? Find out by accessing our full research report, it’s free.
Old Republic International (ORI) Q2 CY2026 Highlights:
・Net Premiums Earned: $2.10 billion vs analyst estimates of $2.13 billion (8.9% year-on-year growth, 1.6% miss)
・Revenue: $2.50 billion vs analyst estimates of $2.37 billion (13% year-on-year growth, 5.5% beat)
・Combined Ratio: 95.3% vs analyst estimates of 98% (270 basis point beat)
・Adjusted EPS: $0.76 vs analyst expectations of $0.79 (4.2% miss)
・Book Value per Share: $25.33 vs analyst estimates of $25.74 (flat year on year, 1.6% miss)
・Market Capitalization: $9.96 billion
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
Big picture, insurers generate revenue from three key sources. The first is the core business of underwriting policies. The second source is income from investing the “float” (premiums collected upfront not yet paid out as claims) in assets such as fixed-income assets and equities. The third is fees from various sources such as policy administration, annuities, or other value-added services. Unfortunately, Old Republic International’s 2% annualized revenue growth over the last five years was sluggish. This was below our standards and is a rough starting point 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 10% over the last two years is above its five-year trend, suggesting its demand recently accelerated.
Note: Quarters not shown were determined to be outliers because they were impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.
This quarter, Old Republic International reported year-on-year revenue growth of 13%, and its $2.50 billion of revenue exceeded Wall Street’s estimates by 5.5%.
Net premiums earned made up 87% 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.
Net premiums earned command greater market attention due to their reliability and consistency, whereas investment and fee income are often seen as more volatile revenue streams that fluctuate with market conditions.
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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 — is 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 because it reflects long-term capital growth and is harder to manipulate than more commonly-used metrics like EPS.
Old Republic International’s BVPS grew at a sluggish 2.3% annual clip over the last five years. However, BVPS growth has accelerated recently, growing by 4.2% annually over the last two years from $23.35 to $25.33 per share.
Over the next 12 months, Consensus estimates call for Old Republic International’s BVPS to grow by 5.8% to $25.74, lousy growth rate.
Key Takeaways from Old Republic International’s Q2 Results
We were impressed by how significantly Old Republic International blew past analysts’ revenue expectations this quarter. On the other hand, its net premiums earned missed and its book value per share fell short of Wall Street’s estimates. Overall, this was a mixed quarter. The stock traded up 2.2% to $42.52 immediately after reporting.
Is Old Republic International an attractive investment opportunity at the current price? 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).
