Old Republic International Corporation
) reported its fourth-quarter 2013 operating net income of 33
cents per share, which outpaced the Zacks Consensus Estimate of
18 cents by 83.3%. The results also bounced back from the
prior-year quarter's operating net loss of 9 cents a share.
Bottom-line growth was primarily driven by improved underwriting
results across most of the active and run-off operations of Old
Including $0.9 million of net realized investment gains, Old
Republic reported net income of $94.7 million rebounding from
$20.2 million of net loss reported in the year-ago quarter.
Total revenue of Old Republic in the reported quarter amounted to
$1.33 billion, surpassing the Zacks Consensus Estimate by 1.3%.
Results also improved 3.8% year over year. Top-line growth came
on the back of better results at Old Republic's General Insurance
Net premiums and fees earned went up 4.8% year over year to $1.22
billion in the quarter.
On the other hand, total expense at Old Republic decreased 9.9%
year over year to $1.19 billion. The improvement resulted mainly
from reduced benefits and claims expenses.
Top-line growth coupled with expense reduction led to an
operating margin improvement for Old Republic. Currently, the
operating margin stands at 7%.
General Insurance Segment
This segment at Old Republic reported total operating revenue of
$740.9 million that increased 7.9% year over year. The increase
was driven by better premium trends across general liability,
worker's compensation and other general insurance coverage.
Moreover, better underwriting results at major fields like
construction, aviation, energy, trucking, home warranty and large
account risk management drove 2013 top-line growth further in
Net investment income for this segment declined during the fourth
quarter. However, cash flow from operations was positive and
accretive to the invested asset base.
Title Insurance Segment
This segment reported total operating revenues of $490.7 million
that improved 2.5% year over year. The improvement came on the
back of favorable market conditions.
Corporate and Other Operations
Total operating revenue generated from Corporate and other
operations of Old Republic amounted to $16.3 million that inched
up 1.9% year over year.
Full Year 2013 Highlights
For full year 2013, Old Republic's operating net income totaled
$351.6 million, rebounding from operating loss of $99.7 million
reported in 2012.
Including net realized investment gains of $96.2 million, Old
Republic reported 2013 net income of $447.8 million which also
substantially improved from net loss of $68.6 million reported in
Total revenue at the company grossed $5.44 billion increasing
9.5% over 2012.
Total expense for 2013 stood at $4.77 billion, declining 6.4%
from the 2012 figure.
Total Assets Of Old Republic as of end-2013 stood at $16.53
billion increasing 1.9% from the 2012-end level.
Cash and invested assets of Old Republic also increased 2.8% from
the 2012-end level to $11.10 billion.
Old Republic presently carries a Zacks Rank #2 (Buy). Other
top-ranked multi line insurers that are worth reckoning include
CNO Financial Group, Inc.
FBL Financial Group Inc.
). All these stocks sport a Zacks Rank #1 (Strong Buy).
CNO FINL GRP (CNO): Free Stock Analysis
FBL FINL GRP-A (FFG): Free Stock Analysis
OLD REP INTL (ORI): Free Stock Analysis
PRUDENTIAL PLC (PUK): Free Stock Analysis
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