Old Republic International (ORI) Combined Ratio Of 94.7% Challenges Earnings Decline Narrative

Simply Wall St.01-24 10:33

Old Republic International (ORI) closed out FY 2025 with fourth quarter revenue of US$2.4b, basic EPS of US$0.84 and net income of US$206.3m. The trailing twelve months show revenue of US$9.1b and EPS...

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The trailing twelve months show revenue of US$9.1b and EPS...</p>\n\n<a href=\"https://simplywall.st/stocks/us/insurance/nyse-ori/old-republic-international/news/old-republic-international-ori-combined-ratio-of-947-challen\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Old Republic International (ORI) Combined Ratio Of 94.7% Challenges Earnings Decline Narrative</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nOld Republic International (ORI) Combined Ratio Of 94.7% Challenges Earnings Decline Narrative\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-01-24 10:33 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/insurance/nyse-ori/old-republic-international/news/old-republic-international-ori-combined-ratio-of-947-challen><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Old Republic International (ORI) closed out FY 2025 with fourth quarter revenue of US$2.4b, basic EPS of US$0.84 and net income of US$206.3m. The trailing twelve months show revenue of US$9.1b and EPS...</p>\n\n<a href=\"https://simplywall.st/stocks/us/insurance/nyse-ori/old-republic-international/news/old-republic-international-ori-combined-ratio-of-947-challen\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"ORI","symbol_name":"Old Republic International Corp","start_time":0,"source_url":"https://simplywall.st/stocks/us/insurance/nyse-ori/old-republic-international/news/old-republic-international-ori-combined-ratio-of-947-challen","article_id":"2605023864","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/7214000-choice1-main-header/1585186744718"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/us/insurance/nyse-ori/old-republic-international/news/old-republic-international-ori-combined-ratio-of-947-challen","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2605023864","pubTimestamp":1769221985,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"Old Republic International (ORI) closed out FY 2025 with fourth quarter revenue of US$2.4b, basic EPS of US$0.84 and net income of US$206.3m. The trailing twelve months show revenue of US$9.1b and EPS of US$3.82. Over the past year, revenue has moved from US$8.2b in the trailing period to Q4 2024 to US$9.1b in the latest trailing period, with EPS over those same trailing windows shifting from US$3.30 to US$3.82. For investors, the headline story is that Old Republic paired this top line and...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"ORI":"Old Republic International Corp","ORI.AU":"ORICA LTD"},"translate_title":"Old Republic International(ORI)综合比率为94.7%，面临盈利下降的挑战","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"ORI.AU":1.5,"ORI":1.5},"content_text":"Old Republic International (ORI) closed out FY 2025 with fourth quarter revenue of US$2.4b, basic EPS of US$0.84 and net income of US$206.3m. The trailing twelve months show revenue of US$9.1b and EPS of US$3.82. Over the past year, revenue has moved from US$8.2b in the trailing period to Q4 2024 to US$9.1b in the latest trailing period, with EPS over those same trailing windows shifting from US$3.30 to US$3.82. For investors, the headline story is that Old Republic paired this top line and EPS profile with a combined ratio of 94.7% over the last twelve months, providing a clear backdrop for how its underwriting margins are shaping the current earnings picture. See our full analysis for Old Republic International. With the latest numbers on the table, the next step is to consider how this mix of revenue, EPS and underwriting performance lines up with the widely followed narratives around Old Republic, and where those stories might need updating. Curious how numbers become stories that shape markets? Explore Community Narratives NYSE:ORI Revenue & Expenses Breakdown as at Jan 2026 AdvertisementCombined Ratio Sits At 94.7% Over TTM  Over the last twelve months, Old Republic reported a combined ratio of 94.7%, compared with 96% in Q4 FY 2025 and 93.6% to 95.3% in earlier 2025 quarters. This helps explain how underwriting has supported the US$935.4 million of trailing net income on US$9.1b of revenue. What stands out for a bullish angle is that high quality earnings and this sub 100% combined ratio sit alongside a trailing net profit margin of 10.2%. This is occurring even though earnings over the past five years declined by 11.6% per year, which creates a contrast between the more recent 9.7% earnings growth over the last year and the longer term trend.  TTM EPS Of US$3.82 Versus 5 Year Earnings Decline  Trailing twelve month EPS is US$3.82 on US$9.1b of revenue and US$935.4 million of net income. The analysis also highlights that earnings declined by 11.6% per year over the past five years and increased by 9.7% over the last year. Bears focus on the forecast that earnings may decline by about 4.9% per year over the next three years. That view sits against the recent 9.7% earnings growth and current 10.2% net margin, which together suggest that the latest twelve month figures are stronger than the multi year decline those same critics point to.\n     That tension between a stronger recent margin and earnings print and the projected 4.9% annual decline is exactly what makes the backward looking and forward looking stories feel out of sync. For you as a shareholder, it means the backward looking track record over twelve months is better than the five year trend, while the bearish view leans more on the forecasts than on the most recent margin and EPS numbers.    📊 Read the full Old Republic International Consensus Narrative. P/E Of 9.9x And US$37.94 Price Versus DCF Fair Value  The stock trades at US$37.94 with a trailing P/E of 9.9x, compared with a DCF fair value of US$66.97 and higher P/E multiples of 12.9x for the US insurance industry and 13x for peers, while revenue is forecast to grow at 5.4% per year versus 10.6% for the broader US market. Supporters of the bullish case often point to this gap between the 9.9x P/E and the higher industry multiples plus the DCF fair value of US$66.97. That relative setup is appearing at the same time as the 10.2% trailing net margin and high quality earnings flag, even though the dividend track record is described as unstable and revenue and earnings are forecast to decline by about 4.9% per year, which gives bulls valuation support but also leaves clear income and growth risks on the table.\n     On one side, the stock price and P/E show a discount versus both peers and the DCF fair value, which bullish investors see as appealing. On the other side, the forecast revenue and earnings decline and the unstable dividend record give cautious investors concrete reasons to question how long that valuation gap might persist.     Next Steps Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Old Republic International's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move. See What Else Is Out There Old Republic’s mix of a declining five year earnings trend, forecast 4.9% annual earnings decline and an unstable dividend record highlights potential income and growth weaknesses. If that combination makes you uneasy, you may want to shift your focus toward companies with steadier income profiles. You can start by checking out these 1794 dividend stocks with yields > 3% today and compare how more reliable payouts can change your return profile.  This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.New: AI Stock Screener & AlertsOur new AI Stock Screener scans the market every day to uncover opportunities.• Dividend Powerhouses (3%+ Yield)• Undervalued Small Caps with Insider Buying• High growth Tech and AI CompaniesOr build your own from over 50 metrics.Explore Now for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. 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