Insurance conglomerate Old Republic International (NYSE: ORI) met Wall Street’s revenue expectations in Q2 CY2025, with sales up 18% year on year to $2.21 billion. Its GAAP profit of $0.81 per share was 3.2% above analysts’ consensus estimates.

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Company Overview

Founded during the Roaring Twenties in 1923 and weathering nearly a century of economic cycles, Old Republic International (NYSE: ORI) is a diversified insurance holding company that provides property, liability, title, and mortgage guaranty insurance through its various subsidiaries.

Revenue Growth

Insurers earn revenue three ways. The core insurance business itself, often called underwriting and represented in the income statement as premiums earned, is one way. Investment income from investing the “float” (premiums collected upfront not yet paid out as claims) in assets such as fixed-income assets and equities is the second way. Fees from various sources such as policy administration, annuities, or other value-added services is the third.

Thankfully, Old Republic International’s 8.9% annualized revenue growth over the last five years was decent. Its growth was slightly above the average insurance company and shows its offerings resonate with customers.

We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. Old Republic International’s recent performance shows its demand has slowed as its annualized revenue growth of 6.3% over the last two years was below its five-year trend. Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.

This quarter, Old Republic International’s year-on-year revenue growth was 18%, and its $2.21 billion of revenue was in line with Wall Street’s estimates.

Net premiums earned made up 85.6% of the company’s total revenue during the last five years, meaning Old Republic International barely relies on non-insurance activities to drive its overall growth.

Markets consistently prioritize net premiums earned growth over investment and fee income, recognizing its superior quality as a core indicator of the company’s underwriting success and market penetration.

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Book Value Per Share (BVPS)

Insurance companies are balance sheet businesses, collecting premiums upfront and paying out claims over time. The float – premiums collected but not yet paid out – are invested, creating an asset base supported by a liability structure. Book value captures this dynamic by measuring:

• Assets (investment portfolio, cash, reinsurance recoverables) - liabilities (claim reserves, debt, future policy benefits)

BVPS is essentially the residual value for shareholders.

We therefore consider BVPS very important to track for insurers and a metric that sheds light on business quality. While other (and more commonly known) per-share metrics like EPS can sometimes be lumpy due to reserve releases or one-time items and can be managed or skewed while still following accounting rules, BVPS reflects long-term capital growth and is harder to manipulate.

Old Republic International’s BVPS grew at a tepid 5% annual clip over the last five years. However, BVPS growth has accelerated recently, growing by 8.3% annually over the last two years from $21.44 to $25.14 per share.

Key Takeaways from Old Republic International’s Q2 Results

We enjoyed seeing Old Republic International beat analysts’ book value per share expectations this quarter. We were also glad its net premiums earned outperformed Wall Street’s estimates. On the other hand, its EPS was in line. Overall, this print had some key positives. The stock remained flat at $36.62 immediately following the results.

Big picture, is Old Republic International a buy here and now? We think that the latest quarter is only one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here, it’s free.