ORI - Old Republic Q4 earnings top consensus as NII climbs expenses dip

Old Republic International ( NYSE: ORI ) stock edged up 1.2% in premarket trading after the property and casualty insurer posted stronger-than-expected Q4 earnings, albeit sliding from a year ago, as net investment income gained during the year and operating expenses improved.

Q4 adjusted EPS of $0.80, exceeding the $0.56 consensus estimate, retreated from $0.88 in the year-ago quarter.

Net investment income rose to $130.2M for the quarter ended Dec. 31, 2022, from $110.6M for the quarter ended Dec. 31, 2021.

General insurance was the only segment that saw positive Y/Y growth in net premiums and fees earned, increasing 6.5% to $986.7M, driven by growth in most lines of coverage, in particular commercial auto.

Total operating expenses were $1.7B compared with $1.93B a year earlier.

Still, consolidated net premiums and fees earned of $1.83B, falling short of the $1.96B consensus, fell from $2.12B in Q4 2021. The slump reflected net premiums and fees earned for title insurance dropping 29.4% Y/Y to $836.4M.

Underwriting and related services income was $187.1M, down from $241.0M in Q4 2021, highlighted by a 75.2% Y/Y plunge in title insurance underwriting income.

Combined ratio of 89.6% versus 88.5% a year earlier.

Conference call at 3:00 p.m. ET (2:00 p.m. CT).

Earlier, Old Republic Non-GAAP EPS of $0.80 beats by $0.24, net premiums and fees earned of $1.83B misses by $130M.

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