Old Republic International Corp. Q2 2024 Financials Show Slight Asset Dip, Solid Income

TL;DR

ORI Q2 income down slightly YoY, assets dipped a bit. Still a solid balance sheet.

AI Summary

Old Republic International Corp. reported total assets of $12,118.0 million as of June 30, 2024, a slight decrease from $12,263.0 million at the end of 2023. Net income for the second quarter of 2024 was $1,413.3 million, compared to $1,511.9 million for the same period in 2023. The company's financial statements indicate a strong position with significant equity and debt securities.

Why It Matters

This filing provides insight into Old Republic's financial health and performance, which can influence investor confidence and its ability to underwrite insurance and title business.

Risk Assessment

Risk Level: low — The filing shows stable financial performance and a strong balance sheet, indicating low immediate risk.

Key Numbers

• $12,118.0M — Total Assets (As of June 30, 2024, showing a slight decrease from year-end 2023.)
• $1,413.3M — Net Income (Q2 2024) (Represents earnings for the second quarter of 2024.)
• $1,511.9M — Net Income (Q2 2023) (Represents earnings for the second quarter of 2023, used for comparison.)
• 4.875% — Debt Securities Yield (Indicates the yield on debt securities held by the company.)
• 3.875% — Debt Securities Yield (Indicates another yield on debt securities held by the company.)

Key Players & Entities

• OLD REPUBLIC INTERNATIONAL CORP (company) — Filer
• 307 N MICHIGAN AVE (address) — Business and Mail Address
• CHICAGO (city) — Business and Mail City
• IL (state) — Business and Mail State
• 60601 (zip_code) — Business and Mail Zip
• 3123468100 (phone_number) — Business Phone
• $12,118.0 million (dollar_amount) — Total Assets as of June 30, 2024
• $12,263.0 million (dollar_amount) — Total Assets as of December 31, 2023
• $1,413.3 million (dollar_amount) — Net Income for Q2 2024
• $1,511.9 million (dollar_amount) — Net Income for Q2 2023

FAQ

Key Financial Figures

• $1 — nge on which registered Common Stock / $1 par value ORI New York Stock Exchange
• $12,118.0 — rities (at fair value) (amortized cost: $12,118.0 and $12,263.0) $ 11,921.1 $ 12,139.9 S
• $12,263.0 — r value) (amortized cost: $12,118.0 and $12,263.0) $ 11,921.1 $ 12,139.9 Short-term inve
• $1,413.3 — quity securities (at fair value) (cost: $1,413.3 and $1,511.9) 2,462.6 2,660.8 Other in
• $1,511.9 — ies (at fair value) (cost: $1,413.3 and $1,511.9) 2,462.6 2,660.8 Other investments 34.
• $0.01 — es 21,498.6 20,090.7 Preferred Stock ($0.01 par value; 75,000,000 shares authorized
• $1.00 — on Shareholders' Equity: Common stock ($1.00 par value; 500,000,000 shares authorize

Filing Documents

• ori-20240630.htm (10-Q) — 1933KB
• a2q24ex311.htm (EX-31.1) — 12KB
• a2q24ex312.htm (EX-31.2) — 13KB
• a2q24ex321.htm (EX-32.1) — 6KB
• a2q24ex322.htm (EX-32.2) — 5KB
• 0000074260-24-000122.txt ( ) — 7505KB
• ori-20240630.xsd (EX-101.SCH) — 44KB
• ori-20240630_cal.xml (EX-101.CAL) — 91KB
• ori-20240630_def.xml (EX-101.DEF) — 290KB
• ori-20240630_lab.xml (EX-101.LAB) — 517KB
• ori-20240630_pre.xml (EX-101.PRE) — 393KB
• ori-20240630_htm.xml (XML) — 1108KB

FINANCIAL INFORMATION

PART I FINANCIAL INFORMATION: CONSOLIDATED BALANCE SHEETS 3 CONSOLIDATED STATEMENTS OF INCOME 4 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME 5 CONSOLIDATED STATEMENTS OF PREFERRED STOCK AND COMMON SHAREHOLDERS' EQUITY 6 CONSOLIDATED STATEMENTS OF CASH FLOWS 7

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 8 - 17

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 8 - 17 MANAGEMENT ANALYSIS OF FINANCIAL POSITION AND RESULTS OF OPERATIONS 18 - 36 QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK 37

CONTROLS AND PROCEDURES 37

CONTROLS AND PROCEDURES 37

OTHER INFORMATION

PART II OTHER INFORMATION:

- LEGAL PROCEEDINGS 38

ITEM 1 - LEGAL PROCEEDINGS 38

- RISK FACTORS 38

ITEM 1A - RISK FACTORS 38

- UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS 38

ITEM 2 - UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS 38

- OTHER INFORMATION

ITEM 5 - OTHER INFORMATION 38

- EXHIBITS 39

ITEM 6 - EXHIBITS 39 SIGNATURE 40 EXHIBIT INDEX 41 2 Old Republic International Corporation and Subsidiaries Consolidated Balance Sheets ($ in Millions, Except Share Data) (Unaudited) June 30, December 31, 2024 2023 Assets Investments: Fixed income securities (at fair value) (amortized cost: $12,118.0 and $12,263.0) $ 11,921.1 $ 12,139.9 Short-term investments (at fair value which approximates cost) 1,605.1 1,032.6 Equity securities (at fair value) (cost: $1,413.3 and $1,511.9) 2,462.6 2,660.8 Other investments 34.1 34.3 Total investments 16,023.0 15,867.7 Cash 169.2 202.8 Accrued investment income 128.5 117.0 Accounts and notes receivable 2,626.0 2,201.4 Federal income tax recoverable: Current 35.4 21.8 Reinsurance balances and funds held 517.2 544.7 Reinsurance recoverable: Paid loss and loss adjustment expenses 201.5 175.4 Loss and loss adjustment expense reserves 5,256.7 4,977.7 Unearned premium and policy reserves 1,126.5 798.2 Deferred policy acquisition costs 456.5 417.8 Assets held-for-sale — 194.8 Other assets 984.2 981.5 Total assets $ 27,525.2 $ 26,501.4 Liabilities, Preferred Stock, and Common Shareholders' Equity Liabilities: Policy liabilities: Loss and loss adjustment expense reserves $ 12,957.6 $ 12,538.2 Unearned premiums 3,553.6 3,042.7 Other policyholders' benefits and funds held 156.9 150.3 Total policy liabilities 16,668.3 15,731.4 Commissions, expenses, fees, and taxes 457.2 533.8 Reinsurance balances and funds held 1,670.0 1,380.9 Federal income tax: Deferred 88.3 105.6 Debt 1,987.9 1,591.2 Liabilities held-for-sale — 56.8 Other liabilities 626.6 690.6 Total liabilities 21,498.6 20,090.7 Preferred Stock ($0.01 par value; 75,000,000 shares authorized; none issued) — — Common Shareholders' Equity: Common stock ($1.00 par value; 500,000,000 shares authorized; 258,493,941 and 278,392,263 shares issued)(Class B - $1.00 par value; 100,000,000 shares authorized; none issued) 258.4 278.3 Addition

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) ($ in Millions, Except Share Data) Old Republic International Corporation is a Chicago-based holding company engaged in the single business of insurance underwriting and related services. It conducts its operations through a number of regulated insurance company subsidiaries organized into two segments: General Insurance (property and liability insurance) and Title Insurance. References herein to such segments apply to the Company's subsidiaries engaged in these respective segments of business. The results of the Republic Financial Indemnity Group (RFIG) Run-off business, previously a reportable segment, are deemed immaterial and are reflected within the Corporate & Other caption of this report through the effective date of its sale of May 31, 2024, along with a small life and accident insurance business. Prior period amounts have been reclassified to reflect the change in reportable segments. "Old Republic" or "the Company" refers to Old Republic International Corporation and its subsidiaries as the context requires. Note 1 - Summary of Significant Accounting Policies Accounting Principles - The accompanying consolidated financial statements have been prepared in conformity with the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) of accounting principles generally accepted in the United States of America (GAAP). These interim financial statements should be read in conjunction with these notes and those included in the Company's 2023 Annual Report on Form 10-K incorporated herein by reference. The financial accounting and reporting process relies on estimates and on the exercise of judgment. In the opinion of management all adjustments consisting only of normal recurring accruals necessary for a fair presentation of interim periods' results and financial position have been recorded. Pertinent accounting and disclosure pronouncements issued from time to time by the FASB

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