Old Republic International (NYSE:ORI) posted a significant jump in fourth-quarter net income, fueled by robust investment gains that offset a cooling in core underwriting profitability.
The Chicago-based insurer reported net income of $206.3 million for the final three months of 2025, nearly doubling the $105.1 million recorded during the same period a year earlier.
However, net operating income—which excludes volatile investment swings—fell to $184.7 million from $227 million, reflecting a more challenging environment for claims and expenses.
Top-line growth remained a bright spot, with consolidated net premiums and fees earned rising 9.8% to $2.13 billion.
The company’s investment portfolio also provided a steady tailwind, as net investment income climbed 7.9% to $183.8 million.
The quarter also saw a tightening of margins in the insurance business.
The consolidated combined ratio, a key measure of profitability where a lower number is better, widened to 96% from 92.7% in the previous year's quarter.
This shift suggests that while the company is successfully growing its premium base, the costs associated with claims and operations are consuming a larger portion of that revenue.