Seeking Alpha

Old Republic stung by run-off business results

  • At issue for the bottom-line miss for Old Republic (ORI -3.5%) were "significantly higher case settlement and protracted litigation costs in the consumer credit indemnity portion of the run-off business." Indeed: RFIG pre-tax operating loss of $34.2M compares to a profit of $55.4M one year ago.
  • In other segments, General Insurance pre-tax profit of 59.7M vs. $63.1M a year ago. Title Insurance pre-tax profit of $26M vs. $40.4M.
  • June 30 book value per share of $15.29 vs. $13.95 a year ago.
  • The earnings call begins at 3 ET.
  • Previously: Old Republic misses by $0.02, misses on revenue
Comments (2)
  • rgperrin
    , contributor
    Comments (996) | Send Message
     
    Just how bad is this? I can't tell.
    24 Jul 2014, 12:30 PM Reply Like
  • Boopsie01
    , contributor
    Comments (16) | Send Message
     
    By the selling pressure, it looks pretty bad, but note they are trading below book. I haven't studied the balance sheet yet, but I'll be looking for tangible cash/assets to help weather the storm. This isn't the first cliff they've walked off this year, as I look back to February, and they recovered nicely. I haven't followed the stock until recently, but I will be watching with interest if it drops below 14 towards it's 52 week low of 13.55. That will put it well over 5% dividend return, and if the fundamentals are strong, a modest downside risk. I hope this general information helps.
    29 Jul 2014, 07:28 PM Reply Like
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