Insurance conglomerate Old Republic International (NYSE: ORI) announced better-than-expected revenue in Q3 CY2025, with sales up 3.5% year on year to $2.42 billion. Its GAAP profit of $0.78 per share was 7.6% 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

In general, insurance companies earn revenue from three primary sources. The first is the core insurance business itself, often called underwriting and represented in the income statement as premiums earned. The second source is investment income from investing the “float” (premiums collected upfront not yet paid out as claims) in assets such as fixed-income assets and equities. The third is fees from various sources such as policy administration, annuities, or other value-added services. Unfortunately, Old Republic International’s 7.3% annualized revenue growth over the last five years was mediocre. This fell short of our benchmark for the insurance sector and is a rough starting point for our analysis.

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 annualized revenue growth of 6.9% over the last two years aligns with its five-year trend, suggesting its demand was consistently weak. 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 reported modest year-on-year revenue growth of 3.5% but beat Wall Street’s estimates by 6.5%.

Net premiums earned made up 85.5% 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 per share (BVPS) captures this dynamic by measuring these assets (investment portfolio, cash, reinsurance recoverables) less 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 5.1% annual clip over the last five years. However, BVPS growth has accelerated recently, growing by 10.7% annually over the last two years from $21.36 to $26.19 per share.

Over the next 12 months, Consensus estimates call for Old Republic International’s BVPS to shrink by 2.1% to $24.35, a sour projection.

Key Takeaways from Old Republic International’s Q3 Results

We were impressed by how significantly Old Republic International blew past analysts’ book value per share expectations this quarter. We were also excited its revenue outperformed Wall Street’s estimates by a wide margin. Zooming out, we think this quarter featured some important positives. The market seemed to be hoping for more, and the stock traded down 2.4% to $41 immediately following the results.

So do we think Old Republic International is an attractive buy at the current price? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it’s free for active Edge members.