Old Republic International's P/B Ratio Is Definitely Out Of Balance

About: Old Republic International Corporation (ORI)
by: Jenks Jumps
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Jenks Jumps
Growth at reasonable price, long-term horizon, value

Old Republic International reported 2020 first-quarter results on April 23rd. Operating revenue improved 9.7% and earnings improved 17.5% when unrealized investment losses were excluded.

But, as a result of the COVID-19 pandemic, the market downturn negatively impacted the insurance company's investment portfolio causing its book value to drop 13.5%.

As a result, the P&C insurer is trading below book value and yielding over 5%.

In late January, I pondered the impact of a market downturn for Old Republic International (ORI). Since then, the market plunged and the company was hardly immune. My investment thesis is based on