Old Republic Q4 EPS misses estimates on commercial auto losses

Overview

• Specialty insurer's Q4 net income rose significantly compared to last year

• Adjusted EPS for Q4 missed analyst expectations

• Consolidated net premiums and fees earned increased 9.8% yr/yr

Result Drivers

• SPECIALTY INSURANCE - Premium rate increases and high renewal retention drove net premiums earned growth, but higher loss ratios in commercial auto affected underwriting income

• TITLE INSURANCE - Lower interest rates and strong commercial business production boosted net premiums and fees earned

• CORPORATE & OTHER - Segment faced reduced net investment income and higher operating expenses

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the property & casualty insurance peer group is "buy"

• Wall Street's median 12-month price target for Old Republic International Corp is $49.00, about 13.6% above its January 21 closing price of $43.12

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 12 three months ago

Press Release: ID:nPnbv6Bb5a

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