Old Republic International (NYSE: ORI) Announces Strategic Acquisition of Everett Cash Mutual Insurance Co.
- Old Republic International is acquiring Everett Cash Mutual Insurance Co. to enhance its agricultural insurance offerings.
- The acquisition, pending approval, is expected to close in 2026 and improve Old Republic's financial metrics.
- Old Republic reported strong financial performance, with a 7.7% rise in net operating income and an 18.5% increase in book value.
Old Republic International Expands Its Portfolio with Strategic Acquisition
Old Republic International Corporation (NYSE: ORI) takes a significant step forward by announcing its agreement to acquire Everett Cash Mutual Insurance Co. (ECM) and its affiliates, pending necessary regulatory and policyholder approval. ECM, based in Everett, Pennsylvania, specializes in insuring small farmowners and select commercial agricultural operations, serving 48 states and the District of Columbia. The acquisition, anticipated to close in 2026, is poised to enhance Old Republic's book value per share and operating income per share, reflecting the company's ongoing commitment to strategic growth in the property and casualty insurance sector.
Craig R. Smiddy, President & CEO of Old Republic, underscores the strategic and cultural alignment between Old Republic and ECM. He praises ECM’s expertise and commitment to underwriting excellence, which aligns well with Old Republic's operational ethos. The acquisition not only strengthens Old Republic’s agricultural insurance offerings but also supports its ambition to increase market share in niche segments. Randy Shaw, President & CEO of ECM, expresses confidence in the partnership, noting that the combined resources will bolster ECM's mission of being the leading carrier for farmowners in the U.S. This acquisition marks a pivotal moment for Old Republic, indicating its proactive approach to expanding its portfolio in response to evolving market demands.
As part of its ongoing financial performance, Old Republic recently reported its third-quarter results for 2025, showcasing a robust operational performance despite a year-over-year decline in net income. The company’s net operating income increased by 7.7% to $196.7 million, demonstrating resilience in its core operations. The consolidated net premiums and fees earned reached $2.1 billion, reflecting an 8.1% increase from the previous year. Such growth indicates that Old Republic continues to thrive amidst a competitive landscape, with its strategic investments and acquisitions like ECM expected to further enhance operational capabilities and profitability.
In addition to the acquisition news, Old Republic's financial health remains strong, with a book value per share increase of 18.5% since the end of 2024. The company reported favorable loss reserve development and a solid annualized operating return on equity of 14.4%. With a total capital return to shareholders amounting to $115 million, Old Republic International demonstrates its commitment to delivering value to its investors while strategically positioning itself for future growth in the insurance market.