I am recommending the purchase of specialty insurer, Old Republic (ORI), which we had success with following the height of the COVID crisis. ORI is a conservatively managed company that produces consistent underwriting results while managing long-term profitability.
ORI is trading just over book value, and with less than 10X a reasonable EPS estimate for this year of $2.45, the shares are already discounting an expected decline in the company’s title insurance business as housing slows. Meanwhile, its other businesses are doing quite well and benefiting from price increases. The 4% dividend yield will add to total returns, and I will have more on ORI in tomorrow’s Value Authority Issue.
Buy ORI under $24. My target is $27. If you are an Inner Circle Subscriber following the Model Portfolio, buy a 5% position in ORI in the Value Segment.