Old Republic International Announces Major Capital Return to Shareholders

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Old Republic International Corporation has unveiled a significant capital return initiative, declaring a special cash dividend of $2.50 per share. This substantial payout, amounting to approximately $620 million in total, highlights the insurer's robust financial position and forms a key part of its ongoing strategy to enhance shareholder value.

This latest distribution is consistent with the company's long-standing commitment to its investors. Over the preceding five-year period, Old Republic has returned more than $5.0 billion to its shareholders. This effort has been complemented by a substantial reduction in the share count, with outstanding shares decreasing by over 20%. President and CEO Craig R. Smiddy attributed the decision to the firm's sustained operational strength, which continues to generate excess capital. The board approved the special dividend following a thorough review of the current and anticipated liquidity and capital requirements for both the parent company and its insurance subsidiaries.

The dividend is scheduled for payment on January 14, 2026, to shareholders of record as of January 2, 2026. This action supplements the company's existing share repurchase program. In the fourth quarter alone, Old Republic repurchased $47 million worth of its stock, with an authorized capacity for an additional $864 million in buybacks remaining available.

Strong Performance Underpins Decision

The announcement comes on the heels of the company's third-quarter 2025 earnings report, where Old Republic posted earnings per share of $0.78, surpassing analyst consensus estimates of $0.76. Prior to this, the firm had declared a regular quarterly cash dividend of $0.29 per share, establishing an annualized payout rate of $1.16. This represents a 9.4% increase compared to the previous year's dividend.

Market analysts have responded positively to these fundamental developments. Research firm Piper Sandler raised its price target on Old Republic shares from $46 to $51 while maintaining its "Overweight" rating. The insurer also maintains a distinguished record of dividend continuity, having paid a dividend to shareholders for 55 consecutive years.

The company's focus remains firmly on disciplined capital allocation, ensuring that its operational success translates directly into measurable returns for its investors.