For the quarter, our operating return on beginning equity was 11.5%, and growth in book value per share, including dividends, was 2.6%. Specialty Insurance grew net premiums earned by 4.7% over the first quarter of 2025 and produced $209 million of pre-tax operating income compared to $260 million. Title Insurance Group grew premiums and fees by 12% over the first quarter of 2025 and produced $16.7 million of pre-tax operating income compared to $4.3 million. With the current interest rate environment, we expect net investment income growth to remain in the low to mid-single digits throughout the rest of 2026.

We ended the quarter with book value per share of $24.53, which inclusive of the regular dividend equated to an increase of 2.6% since year-end, resulting primarily from our operating earnings. As I referred earlier, rate increases remained steady with the fourth quarter that we reported, and that is at a 16% rate increase level, which is in line with loss trends. We also expect to see continuing growth in top-line contributions from our newer specialty operating companies. Title insurance reported premium and fee revenue for the quarter of $678 million.

This represents an increase of 12% from first quarter of last year. The start of the 2026 home buying season was marked by higher inventory levels, lower interest rates, and moderating price growth compared to 2025. While our combined ratio of 100% is still elevated, the improvement reflects increased revenues and the margin expansion efforts we have been working on. While we're seeing some top-line pressure along with some expense pressure in specialty insurance, the fundamentals in specialty remain very strong, and the investments we're making will contribute to continued profitable growth.

What went well
  • Title insurance posted a sharp turnaround, growing premium/fees 12% and lifting pre-tax operating income to $16.7M from $4.3M a year earlier, with the combined ratio improving to 100 from 102.
  • Specialty insurance net premiums earned grew 4.7% on strong commercial auto and general liability rate increases and contributions from newer operating companies.
  • The company was aggressive on capital return, paying ~$77M in dividends and repurchasing $161M of shares in the quarter (plus $52M after quarter-end), with ~$640M remaining on the program.
  • Management announced a new operating company, Old Republic Property (led by Patrick Hagerty), rebranded Lodestar Claims and Risk Services as a standalone fee-income company, and reaffirmed the ECM acquisition would close around July 1.
  • Net investment income rose ~4% and management guided to low-to-mid single-digit NII growth for the rest of 2026.
What went wrong
  • Consolidated pre-tax operating income fell to $211.5M from $252.7M and the consolidated combined ratio worsened to 96.6 from 93.7.
  • Net operating income declined to $171M ($0.68/share) from $202M ($0.81), and operating return on beginning equity slipped to 11.5%.
  • Specialty pre-tax operating income dropped to $209M from $260M as the specialty expense ratio rose to 31.2% from 28.1% amid investment in new operating companies, technology, and AI.
  • Favorable prior-year reserve development was lower (1.5 points vs 2.6), and general liability recorded a moderate amount of unfavorable development across recent accident years.

More on Old Republic International Corp

Reported 2026-04-23 · figures from the Old Republic International Corp Q1 2026 earnings call.

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