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Old Republic (ORI) Board OKs Special Dividend, Share Buyback
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The board of directors of Old Republic International Corporation (ORI - Free Report) recently approved a special, one-time cash dividend of $1 per share as well as a $450 million share buyback program. Concurrently, the board of directors also declared a quarterly dividend of 23 cents per share. Both the dividends will be paid out on Sep 15, 2022 to shareholders of record on Sep 1, 2022.
Old Republic estimates deploying $760 million through these capital management actions. A solid financial foundation and operational performance should continue to support Old Republic International to engage in shareholder-friendly moves.
Banking on better segmentation, improved risk selection, pricing precision and increased use of analytics, the General Insurance segment should continue to deliver solid results. Its Title insurance business will likely continue to benefit from its expanding presence in the commercial real estate market. The third largest title insurer in the country has been strengthening its balance sheet with improving cash balance and a low leverage ratio.
Per Mergent’s Dividend Achievers, the company ranks 58th among 111 companies that posted at least 25 consecutive years of annual dividend growth. Since Dec 31, 2016, the board has declared regular and special cash dividends of nearly $3 billion.
Banking on its strong capital position, ORI increased dividends for 41 straight years and paid out dividends for the last 81 years. Its dividend yield of 3.7% betters the industry average of 2%, making it an attractive pick for yield-seeking investors.
Shares of this Zacks Rank #2 (Buy) title insurer has lost 1.3% year to date compared with the industry’s decrease of 2.6%. Segmental strength and solid capital position should help it bounce back.
Image Source: Zacks Investment Research
Recently, American Financial Group (AFG - Free Report) board also approved a hike in its quarterly dividend of 12.5%.
AFG increased its dividend nearly four times over a decade. Banking on the solid capital level, the board of directors of American Financial believes returning excess capital to shareholders in the form of dividends is an important and effective component of its capital management strategy.
The bottom line of Arch Capital surpassed earnings estimates in three of the last four quarters and missed in one, the average being 33.64%. Year to date, the insurer has rallied 6.3%.
The Zacks Consensus Estimate for Arch Capital’s 2022 and 2023 earnings has moved 5.7% and 4.9% north, respectively, in the past 30 days.
The bottom line of ProAssurance surpassed earnings estimates in three of the last four quarters and missed in one, the average being 150.9%. Year to date, the insurer has lost 8.6%.
The Zacks Consensus Estimate for ProAssurance’s 2022 and 2023 earnings has moved 16.9% and 13.9% north, respectively, in the past seven days.
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Old Republic (ORI) Board OKs Special Dividend, Share Buyback
The board of directors of Old Republic International Corporation (ORI - Free Report) recently approved a special, one-time cash dividend of $1 per share as well as a $450 million share buyback program. Concurrently, the board of directors also declared a quarterly dividend of 23 cents per share. Both the dividends will be paid out on Sep 15, 2022 to shareholders of record on Sep 1, 2022.
Old Republic estimates deploying $760 million through these capital management actions. A solid financial foundation and operational performance should continue to support Old Republic International to engage in shareholder-friendly moves.
Banking on better segmentation, improved risk selection, pricing precision and increased use of analytics, the General Insurance segment should continue to deliver solid results. Its Title insurance business will likely continue to benefit from its expanding presence in the commercial real estate market. The third largest title insurer in the country has been strengthening its balance sheet with improving cash balance and a low leverage ratio.
Per Mergent’s Dividend Achievers, the company ranks 58th among 111 companies that posted at least 25 consecutive years of annual dividend growth. Since Dec 31, 2016, the board has declared regular and special cash dividends of nearly $3 billion.
Banking on its strong capital position, ORI increased dividends for 41 straight years and paid out dividends for the last 81 years. Its dividend yield of 3.7% betters the industry average of 2%, making it an attractive pick for yield-seeking investors.
Shares of this Zacks Rank #2 (Buy) title insurer has lost 1.3% year to date compared with the industry’s decrease of 2.6%. Segmental strength and solid capital position should help it bounce back.
Image Source: Zacks Investment Research
Recently, American Financial Group (AFG - Free Report) board also approved a hike in its quarterly dividend of 12.5%.
AFG increased its dividend nearly four times over a decade. Banking on the solid capital level, the board of directors of American Financial believes returning excess capital to shareholders in the form of dividends is an important and effective component of its capital management strategy.
Other Stocks to Consider
Some other top-ranked stocks from the property and casualty insurance industry are Arch Capital Group Ltd. (ACGL - Free Report) and ProAssurance Corporation (PRA - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The bottom line of Arch Capital surpassed earnings estimates in three of the last four quarters and missed in one, the average being 33.64%. Year to date, the insurer has rallied 6.3%.
The Zacks Consensus Estimate for Arch Capital’s 2022 and 2023 earnings has moved 5.7% and 4.9% north, respectively, in the past 30 days.
The bottom line of ProAssurance surpassed earnings estimates in three of the last four quarters and missed in one, the average being 150.9%. Year to date, the insurer has lost 8.6%.
The Zacks Consensus Estimate for ProAssurance’s 2022 and 2023 earnings has moved 16.9% and 13.9% north, respectively, in the past seven days.