Banking
Old Republic Fourth-Quarter Profits Jump 42%
TSC and IRIS Staff
01/27/06 - 01:10 PM EST
Old Republic International(ORI), an insurance holding company, posted a 42.5% increase in profits for the fourth quarter on higher premiums and fees in its three main segments.
The company earned $143.1 million, or 61 cents a share, in the quarter, compared with $100.4 million, or 43 cents a share, a year ago. Analysts surveyed by Thomson First Call were expecting earnings of 52 cents a share in the most recent quarter.
Fourth-quarter revenue rose 11.3% from a year ago to $1 billion. Analysts were expecting revenue of $930.2 million in the most recent quarter.
Revenue in general insurance grew by 6.3%, mortgage guaranty by 5.1%, and title insurance by 15.1%.
The board declared a 25% stock dividend in the form of a 5-for-4 stock split on the company's outstanding common stock. With the stock split, the total common shares outstanding as of Dec. 31, 2005 are approximately 229.5 million shares.
The board also approved the payment of a special year-end cash dividend of 80 cents. Including the previously declared regular quarterly cash dividends aggregating 51 cents a share for the year, the special dividend brought the total 2005 payout to $1.31 a share.