The insurance and mortgage industry was significantly impacted by COVID-19, and Old Republic International Corporation is no exception. The insurance holding company reported a 55.2% decrease of net income in the fourth quarter of 2020 compared to the same period in 2019. The company reported net income of $150.3 million for the fourth quarter, compared with $332.4 million for the same period in 2019.
Across Old Republic’s four business segments, the net income decreased from $156.9 million in 2019 to $100.1 million in 2020. The decrease in the net income mainly resulted from a decrease in net investment income and investment-related gains of $35.3 million, due to the decrease in interest rates and volatility in the equity markets. The company also reported a decrease in operating profit from $226.2 million in 2019 to $125.1 million in 2020.
The decrease in the holding company’s net income also impacted its balance sheet. As of December 31, 2020, the company’s total assets decreased 5.2% to $23.2 billion compared to the same period in 2019. Old Republic’s total stockholders’ equity also decreased to $3.3 billion at the end of the fourth quarter of 2020, a 9.2% decrease compared to the same period in 2019.
Old Republic has implemented strict cost containment measures, such as cutting its payroll costs and limiting travel expenses, to help mitigate the effects of the pandemic on its financial performance. The company continues to work on increasing its operating efficiency and maintaining its solvency. Despite the decrease in net income and assets, Old Republic remains well-positioned to continue delivering value to its shareholders.
You can read this full article at: https://www.housingwire.com/articles/old-republic-net-income-down-55-25-in-2022/
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