Old Republic International (NYSE:ORI) just delivered an eye-catching third-quarter report, with net income skyrocketing to $338.9 millionup from a mere $52.6 million last year. The boost came on the back of a 17.3% surge in net investment income, thanks to higher yields, and a solid 9.6% increase in premiums driven by momentum across General and Title Insurance. Yet, rising costs nudged the combined ratio up to 95.0%, reflecting a dip in favorable loss reserve development.
General Insurance led the charge with a 13.9% spike in premiums, fueled by rate increases and new business, although some areas, like public D&O coverage, faced headwinds. Title Insurance didn't lag too far behind, notching a 3.5% gain in premiums even as commercial demand slipped. Across the board, higher investment yields kept profitability on track, bolstering quarterly performance.
Shareholders saw equity per share climb to $25.71, marking a 10.3% gain year-to-date. The company kept its promise to investors, dishing out $232 million in returns through dividends and buybacks. With the market in flux, Old Republic's strategic moves underscore a commitment to driving shareholder value while navigating the shifting landscape.
This article first appeared on GuruFocus.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.