Our annualized operating return on beginning equity stands at 12.1%, and for the first six months of the year, growth in book value per share, including dividends, stands at 7.2%. Specialty insurance grew net premiums earned by 2.3% over the second quarter of 2025 and produced $199 million of pre-tax operating income compared to $254 million. In title insurance, we grew premiums and fees by 10% over the second quarter of 2025 and produced $56 million of pre-tax operating income compared to $24 million. Our average rate on corporate bonds acquired during the quarter was 4.9% compared to the average yield rolling off of about 4.2%.

The total bond portfolio book yield ended the quarter at 4.8%, which was a slight increase from year-end. We ended the quarter with book value per share of $25.33, which inclusive of regular dividends, represented an increase of 7.2% since year-end. This increase resulted primarily from solid operating earnings and higher investment valuations. Finally, as a precursor to next quarter, we expect to report a bargain purchase gain on the ECM acquisition and for ECM's results to be accretive to earnings and book value this year.

Title reported premium and fee revenue for the quarter of $773 million. After a slow seasonal start, residential transactions improved a bit this quarter, contributing to our revenue growth as well as strong commercial activity. Their marching orders are to build the platform, to build it right, and there's no incentive whatsoever in the first three years to put any premium on the books. I guess just pivoting to the title business, just watching with interest the growth in your commercial book.

What went well
  • Title insurance was the standout, growing premium/fees 10%, more than doubling pre-tax operating income to $56M from $24M, and improving its combined ratio to 95.1 from 99 (expense ratio down 4 points to 92.1%).
  • Commercial auto rate increases ran in the high teens, exceeding observed loss trends, and retention improved as competitors raised their own rates.
  • The ECM acquisition closed, with management expecting a bargain purchase gain next quarter and ECM (2025 direct premiums written ~$220M, ~$145M GAAP equity) to be accretive to earnings and book value.
  • Net investment income rose ~6% on a larger investment base and the May debt issuance, and book value per share reached $25.33, up 7.2% since year-end.
  • The company continued returning capital, paying ~$77M in dividends and repurchasing $61M of shares, with ~$640M remaining on the program.
What went wrong
  • Consolidated pre-tax operating income fell to $238M from $268M, and specialty pre-tax operating income dropped sharply to $199M from $254M.
  • Specialty's combined ratio worsened to 95.5 from 90.7, and its runoff transactional-risk business (placed in runoff in 2024) required $40M of reserve strengthening on poor claims experience.
  • Specialty net premiums written were soft (+1.6% excluding a premium write-up in the auto warranty business) and workers' compensation net premiums written fell 8.4% amid a competitive marketplace.
  • Net operating income declined to $186M ($0.76/share) from $209M ($0.83), with slight unfavorable prior-year development in specialty.

More on Old Republic International Corp

Reported 2026-07-23 · figures from the Old Republic International Corp Q2 2026 earnings call.

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