Old Republic International reported second-quarter 2026 net income of $322.3 million, up from $204.4 million a year earlier.
Net operating income, which excludes investment gains, came in lower at $186 million, or $0.76 per share, compared with $209.2 million, or $0.83 per share, a year earlier.
Consolidated net premiums and fees earned rose to nearly $2.1 billion from nearly $2 billion, while the consolidated combined ratio widened slightly to 95.3% from 93.6%. Favorable prior-year loss reserve development contributed 0.1 points to the quarter, down sharply from 2.1 points a year earlier.
Old Republic's title insurance segment was the standout performer of the quarter, posting underwriting income of $37.6 million compared with just $6.9 million in the second quarter of 2025.
Net premiums and fees earned in the segment rose 10.7% to $772.6 million, with commercial premiums accounting for 25.4% of net premiums earned, up from 23.0% a year earlier.
The improvement tracks a broader recovery in the US real estate market. Easing mortgage rates and improving affordability have lifted transaction activity in 2026, with the National Association of Realtors reporting existing home sales rising to an annualized pace of 4.09 million in February, ahead of market expectations, alongside steady gains in commercial real estate activity.
Even as transaction volume improves, title insurers face a longer-term structural challenge from attorney opinion letters, which Freddie Mac has accepted as an alternative to a lender's title policy for more than 15 years and Fannie Mae has accepted since 2022. Fannie Mae expanded that eligibility further to cover condominium loans in an update to its Selling Guide finalized in December 2025.
The American Land Title Association has argued that AOLs leave borrowers and lenders exposed to title risks that cannot be identified through a public records search, noting that roughly a third of claims paid by title insurers stem from defects that would not surface in such a review.
Fannie Mae has said borrowers save an average of $1,000 in closing costs by using an AOL instead of a title policy, and reports no losses on more than 10,000 AOL-backed loans purchased since 2009.
For large title writers such as Old Republic, the extent to which lenders adopt AOLs at scale remains a watch point for future premium volume, even though this quarter's results were driven by broader transaction growth.
Old Republic's larger specialty insurance segment saw net premiums written rise 9.0% to $1.48 billion, though underwriting income fell to $59.3 million from $119.9 million a year earlier as the segment's combined ratio rose to 95.5% from 90.7%.
Much of the reported premium growth reflected a large auto warranty program that requires retail service contract pricing to be included in net premiums written. Excluding that effect, underlying premium growth was a more modest 1.6%.
Earned premium growth was strongest in commercial auto, accident and health, general liability, property and auto warranty coverages, while workers' compensation and Canadian travel accident and trucking lines declined.
The segment absorbed approximately $40 million, or 3.0 points, of unfavorable prior-year reserve development from its run-off transactional risk business, largely offset by favorable development in commercial auto and property.
The expense ratio remained elevated due to continued investment in newer operating companies, technology modernization, data and analytics, and artificial intelligence initiatives.
Old Republic's previously announced acquisition of Everett Cash Mutual Insurance Co. closed effective July 1, following ECM's conversion from a mutual to a stock company through a sponsored demutualization.
ECM, a 112-year-old insurer of small farmowners and select commercial agricultural risks based in Everett, Pennsylvania, wrote $237 million in direct premium in 2024 across 48 states and the District of Columbia, with $126 million in statutory policyholders' surplus.
The deal will be included in the specialty insurance segment starting in the third quarter, with Old Republic expecting to record a gain on acquisition of approximately $125 million, subject to final valuation, and for the business to be accretive to 2026 earnings.
The transaction extends Old Republic's specialty footprint into farm and agricultural insurance, a niche market where sponsored demutualizations have become a common route for smaller mutuals seeking access to larger capital bases.
