Old Republic International (ORI): A Dividend Dynamo with Cyber and Tech-Fueled Growth

Investors seeking reliable income streams and exposure to an evolving insurance landscape may want to take note of Old Republic International Corporation (ORI). With a 43-year dividend growth streak and 83 years of uninterrupted payments, ORI has established itself as a dividend titan. But its story doesn't end there. In 2024, the company not only delivered an 8.2% dividend hike—the 43rd consecutive increase—but also expanded into high-growth areas like cyber insurance and forged strategic tech partnerships. Amid sector-wide challenges, ORI's blend of financial resilience and forward-looking strategy positions it as a standout income play with meaningful upside potential.

Dividend Reliability: A Legacy of Consistency

ORI's dividend track record is unrivaled. Since its founding in 1939, the company has never missed a dividend payment, and it has raised payouts every year since 1981. In 2024, shareholders received a $1.06 annualized regular dividend per share, an 8.2% increase over 2023. This growth was underpinned by robust earnings: net income rose to $3.24 per diluted share in 2024, a 54.3% jump from the prior year.

The dividend's sustainability is further bolstered by $5.6 billion in shareholders' equity and a fortress balance sheet. The company also returned $1.7 billion to shareholders in 2024 through dividends and buybacks, a testament to its cash-generating prowess.

Financial Resilience in a Volatile Market

While insurers face headwinds like inflation and claims volatility, ORI's diversified business model shields it from sector-wide pressures. Its Specialty Insurance segment—which includes commercial auto, property, and liability coverages—saw net premiums surge 13.5% annually, driven by rate hikes and strong retention. The segment's pretax operating income rose 7.7%, with a 92.2% combined ratio within management's target range.

Even its Title Insurance segment, traditionally cyclical, posted a 7.9% rise in pretax income for the full year, despite flat top-line growth. Management's focus on underwriting discipline is paying off: the company's consolidated combined ratio improved to 93.9% in 2024, reflecting better claims management.

Strategic Growth Drivers: Cyber Insurance and Tech Partnerships

ORI's recent moves into cyber insurance and title tech collaborations signal its ambition to dominate emerging markets. In January 2025, it launched Old Republic Cyber, Inc., a new subsidiary offering specialized coverage for cyber risks and technology-related errors and omissions. Led by veterans from firms like AIG and Beazley, the unit targets a $20 billion global cyber insurance market expected to grow at a 10%+ CAGR through 2030.

Meanwhile, its title division is leveraging technology to combat fraud. In early 2024, Old Republic Title partnered with CertifID, a wire fraud protection firm, to address mortgage payoff fraud—a critical issue in a sector where losses from such scams have surged. This move not only strengthens customer trust but also opens doors to new revenue streams through tech-enabled risk mitigation.

Navigating Risks with Strength

No investment is risk-free. ORI faces headwinds like rising interest rates (which pressure investment income) and claim volatility in public D&O and workers' compensation lines. However, its $22.84 book value per share (up 11.1% in 2024) and $1.5 billion in liquidity provide a buffer. Management's share repurchase program—which has reduced shares outstanding by over 20% since 2022—also boosts per-share metrics, ensuring dividends remain affordable.

Why Invest Now?

ORI's 83-year dividend history and $852.7 million in 2024 earnings (an all-time high) make it a low-risk, high-reward bet. With a dividend yield of 2.3% (vs. the S&P 500's 1.3%) and a P/E ratio of 12.5 (below its 10-year average), it's attractively priced.

Moreover, its cyber and tech initiatives position it to capture growth in fast-emerging markets. As insurers like Allianz and Chubb grapple with legacy systems, ORI's nimble moves into cyber and title tech could carve out a first-mover advantage.

Final Analysis

Old Republic International is more than a dividend stalwart—it's a future-focused insurer leveraging innovation to fuel growth. With a fortress balance sheet, disciplined underwriting, and strategic investments in cyber and tech, ORI is primed to deliver both income and capital appreciation. For investors seeking safety with growth, ORI's combination of reliability and ambition makes it a must-own stock for 2025 and beyond.

Action Item: Consider adding ORI to your portfolio for steady dividends and exposure to emerging sectors. With a dividend growth streak unmatched in the industry and a pipeline of new initiatives, this is a name to watch.