In a significant move to reward its shareholders, Old Republic International Corporation (NYSE: ORI) has declared a special cash dividend of $2.00 per share. This dividend is set to be paid on January 15, 2025, to all shareholders who are on record as of January 3, 2025. The total amount distributed through this special dividend is expected to reach approximately $500 million, highlighting the company’s commitment to returning capital to its investors.
Old Republic has a longstanding history of dividend payments, having maintained a consistent payout for an impressive 54 consecutive years. This track record underscores the company’s dedication to delivering value to its shareholders, as noted by InvestingPro data.
The decision to issue this special dividend is part of Old Republic’s broader strategy aimed at enhancing shareholder returns. This strategy also includes an ongoing share repurchase program, which has seen the company repurchase $174 million worth of shares in the current fourth quarter alone. Under the existing $1.1 billion share buyback authorization, there remains approximately $240 million available for future repurchases.
Craig R. Smiddy, President and CEO of Old Republic, emphasized that the company’s robust performance has led to the generation of excess capital, which in turn facilitates these generous returns to shareholders. The combination of the special dividend and share repurchases, which have collectively totaled over $1.7 billion and reduced the number of outstanding shares by more than 20% over the past two and a half years, reflects Old Republic’s strong financial health and confidence in its diversified specialty insurance portfolio.
Currently, Old Republic boasts a market capitalization of $9.1 billion and a price-to-earnings (P/E) ratio of 10.2. According to analysis from InvestingPro, the stock is trading below its fair value, further indicating that it remains an attractive investment opportunity while maintaining a solid financial foundation.
This announcement comes as the company continues to navigate the complexities of the insurance market while ensuring that shareholder interests remain a top priority. Investors will be keenly watching the upcoming dividend payment and the ongoing share repurchase activities as indicators of the company’s financial trajectory and commitment to enhancing shareholder value.
As Old Republic prepares for the payment of this special dividend, it reinforces its position as a reliable player in the insurance sector, with a strong focus on delivering consistent returns to its shareholders.
