307 North Michigan Avenue, Chicago, IL 60601 (312) 346-8100 . Kimberly Smith In addition, her various Corporate roles focused on both financial budgeting and forecasting for Gap Inc.'s portfolio of brands (Old Navy, Gap, Banana Republic, Athleta), as well as engaging in Supply Chain, IT, Treasury and Investor relations work. As you are aware, investment funds advised by Owl Creek Asset Management, L.P. ("Owl Creek" or "we") are shareholders of Old Republic International Corporation ("Old Republic" or the. These symbols will be available throughout the site during your session. Selected peer set includes Chubb (CB), Markel (MKL), Travelers (TRV) and W.R. Berkeley (WRB). EQ Shareowner Services This quarterly report represents an earnings surprise of 23.94%. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. The Company is organized as an insurance holding company whose subsidiaries actively market, underwrite, and provide risk management services for a wide variety of coverages mostly in the general and title insurance fields. To ensure the most secure and best overall experience on our website, we recommend the latest versions of, Shares are valued at a discount to nearly all publicly traded commercial lines insurers in the U.S. on most relevant consolidated valuation metrics despite negligible business interruption exposure and attractive lines, On a sum-of-the-parts basis, we believe shares are even more undervalued as the market does not appear to give any credit for Old Republics title business, We believe the Companys general insurance business alone is worth more than the value attributed to the entire Company, implying that the market is ascribing negative value to the 3rd largest title business in the country, General insurance is a traditional balance-sheet-intensive insurance operation, while title is better described as a fee-based business, Despite the Companys consistent messaging on the benefits of this strategic diversification, we believe shareholders are unduly punished, not rewarded, for this combination, We believe the title insurance industry is undergoing a technological revolution that aims to make the process much more efficient and convenient at each underwriting step, While Old Republic is currently competitive and executing well, we are concerned it could fall behind without increased investment going forward, We believe that a separation of the title business would come with minimal incremental costs given the preexisting decentralized operating structure, They have even raised concerns regarding the governance and nominating committees duty to shareholders, which further emphasizes that change must come from within the Board, As evident in recent elections, no Director has received close to 80% of the vote in uncontested elections and there is consistent shareholder opposition of nominated Directors, We believe this reputation is unacceptable and a clear impediment to shareholder value creation, Old Republics current Board has no diverse representation and includes just one female Director a trend the Company has displayed for nearly 100 years since its founding in 1923, Additionally, half of the Board is over the 75-year retirement threshold stated in the Companys Board governance documents and the Lead Independent Director has served for 47 years, bringing to question the independent perspectives brought to Board discussions, Only exacerbating these troubling facts is the Companys unwillingness to declassify its entrenched Board, which makes it nearly impossible for the Company to introduce new Directors and for shareholders to constructively engage at the Board level, Discourage the involvement of both existing and new investors, Lack accountability, particularly with enforcing its existing Director retirement policy and allowing for productive Board churn, Ultimately withhold sound leadership from a truly independent Lead Independent Director and Chairman who could bring fresh perspectives. OVERALL RESULTS: Quarters Ended June 30, Six Months Ended June 30, 2023: 2022 % Change: 2023: . Old Republic International About Insurance company executive with responsibilities for strategy, growth, M&A, investor relations, corporate finance, capital management and enterprise risk. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Companies that used to be publicly owned tend to have lower insider ownership. You can sign up for additional alert options at any time. St. Paul, MN 55164-0874, 1-800-468-9716 Management uses nonGAAP measures that exclude certain items in order to better assess operating performance and help investors compare results with our previous performance. Old Republics consolidated debt/capitalization levels have become extreme when compared to both historical levels and those of peers. 212-688-2550, Internet Explorer presents a security risk. authenticate users, apply security measures, and prevent spam and abuse, and, display personalised ads and content based on interest profiles, measure the effectiveness of personalised ads and content, and, develop and improve our products and services. By signing up you agree to receive content from us. The firm was founded in 2001 and is registered as an investment adviser with the U.S. Securities and Exchange Commission. Alternatively, please write or call: Investor Relations. MAC N9173-010 from 8 AM - 9 PM ET. Get in touch with us directly. You'll now be able to see real-time price and activity for your symbols on the My Quotes of Nasdaq.com. Specifically, we believe that the Board could potentially realize additional shareholder value by: 1. The decision ends a highly successful 40-year career that began in public accounting, with the last 17 years dedicated to ORI's business. , . Old Republics Board and past management, in our view, have a concerning track record of poor communications with shareholders and a general unwillingness to cooperate with shareholders. At Old Republic: While there is some analyst coverage, the company is probably not widely covered. Craig R. Smiddy, President and CEO, commented, "Old Republic continues to perform at a high level, a testament to our talented associates executing on our specialty, diversified business strategy. 2. The new company, Old Republic Inland Marine ("ORIM"), will focus its operations on specialized Inland Marine products through retail and wholesale distribution channels. Here's a summary of recent years' total book and market returns, which includes the addition and reinvestment of cash dividend payments, in comparison with the financial performance of three selected indices similarly developed. ORI's performance reflects an entrepreneurial Disclosing objective performance criteria for executive bonuses and incentives. Taking a look at our data on the ownership groups (below), it seems that institutions are noticeable on the share registry. The definition of an insider can differ slightly between different countries, but members of the board of directors always count. By signing up you agree to receive content from us. The current annualized dividend rate of $0.88 per share marks the 40th consecutive year that Old Republic has boosted this rate, and 2021 becomes the 80th year of uninterrupted regular cash dividend payments. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. San Francisco 2 Folsom St. San Francisco, CA 94105 1-800-333-7899. So it is worth checking the past earnings trajectory of Old Republic International, (below). In making this announcement, Craig Smiddy noted that "Old Republic Inland Marine is a natural extension and continuation of Old Republic's long, successful history of providing specialized Commercial Insurance related products. Old Republic may also from time to time repurchase shares pursuant to written, pre-arranged Rule 10b5-1 plans, which will be established and conducted in accordance with applicable regulations. Se vuoi personalizzare le tue scelte, clicca su "Gestisci le impostazioni per la privacy". You must click the activation link in order to complete your subscription. from 8 AM - 9 PM ET. Chris, also a CPA by profession, will be adding greater responsibilities to his continued role as Chief Financial Officer of our Company's Title Insurance business, to which he has dedicated 37 years of service. Type a symbol or company name. You can sign up for additional alert options at any time. Share this article. This compares to year-ago revenues of $2.05 billion. Institutions often own shares in. The Old Republic General Insurance Group (ORGIG) is our largest segment. Tel. Further, we believe that if our suggestions are implemented and Old Republic unlocks the value of its overshadowed title business, the Board has the opportunity to create more than 50% in incremental shareholder value. The nature ofOld Republic'sbusiness requires that it be managed for the long run, and its cash dividend policy reflects this long-term orientation. 307 North Michigan Avenue We are committed to recruiting, hiring, training and promoting qualified people of all backgrounds, and make all employment decisions without regard to any protected status. We aim to bring you long-term focused analysis driven by fundamental data. Old Republics title and general insurance segments operate fundamentally different business models that have distinct strengths but share no clear benefit from being operated under the same corporate umbrella. BlackRock, Inc. is currently the largest shareholder, with 9.6% of shares outstanding. 3. ET Conference Call: Tuesday, July . The company has topped consensus revenue estimates four times over the last four quarters. Old Republic, which belongs to the Zacks Insurance - Multi line industry, posted revenues of $2.27 billion for the quarter ended December 2021, surpassing the Zacks Consensus Estimate by 3.67%. Jeffrey Altman According to its 2021 Annual Review, ORI is one of just 111 American publicly held companies, out of thousands considered, that have posted at least 25 consecutive years of annual dividend growth. You must click the activation link in order to complete your subscription. Spin-off has Minimal Incremental Costs and Business Disruption. Old Republics shares appear to be materially undervalued on both a consolidated and sum-of-the-parts basis. About A dedicated, resourceful and trustworthy investor relations professional with close to 10 years of experience in the banking sector. NEW YORK--(BUSINESS WIRE)--Investment funds advised by Owl Creek Asset Management, L.P. (Owl Creek), an event-driven and fundamental value long/short investment advisory firm based in New York, are shareholders of Old Republic International Corporation (Old Republic or the Company) (NYSE: ORI) and beneficially own over 2% of the Companys outstanding common equity. To act in the benefit of long-term shareholders, we believe the Board should immediately authorize a sizeable share repurchase program not at any price, but through a disciplined and valuation-based approach.
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