Old Republic International Corporation Announces Major Acquisition of Everett Cash Mutual Insurance Co.

Old Republic International Completes Acquisition of Everett Cash Mutual

Old Republic International Corporation (NYSE: ORI) has made a pivotal announcement regarding its latest acquisition of Everett Cash Mutual Insurance Co. (ECM) and its affiliated companies. Following a definitive agreement, the acquisition is pending regulatory and policyholder approval, marking a significant strategic move for the insurance giant. This transition is set within the framework of a sponsored demutualization, as ECM prepares to convert into a stock company.

Everett Cash Mutual has long stood as a reputable insurer for small farmowners and select commercial agricultural operations, showcasing a strong presence across 48 states and the District of Columbia. Recently, ECM reported a substantial $237 million in direct written premium for 2024, alongside a commendable consolidated statutory policyholders' surplus of $126 million. The company has a remarkable history of profitable growth and stability, which makes it an attractive add-on to Old Republic's portfolio of specialty companies.

Craig R. Smiddy, President and CEO of Old Republic, emphasized the strategic fit of this acquisition, stating that ECM’s expertise in the agricultural insurance market aligns seamlessly with ORI's existing operations. Smiddy noted, “With ECM's 'narrow and deep' expertise in the farmowners and commercial agricultural market and their commitment to underwriting excellence, there is a strong strategic and cultural fit with ORI's portfolio of specialty companies. We welcome Randy Shaw, his team, and his customers to Old Republic and look forward to sustained profitable growth.”

Randy Shaw, ECM's current President and CEO, acknowledged this union’s potential, stating, “After 112 years, ECM has found a partner in Old Republic that shares our culture of underwriting excellence. With the combined financial and operational resources available to us, we can continue to pursue our mission of becoming the preeminent farmowners carrier in the country.”

This acquisition is poised to bring significant value to Old Republic, as analysts predict it will be accretive to both book value and operating income per share once finalized in 2026. In preparation for this transaction, Old Republic enlisted Griffin Financial Group, LLC as its financial advisor and Troutman Pepper Locke LLP as its legal counsel. ECM, in contrast, was advised by Philo Smith Capital Corp and Mette, Evans & Woodside for its financial and legal needs.

As Old Republic International pursues this transaction, it solidifies its commitment to enhancing its infrastructure and broadening its services in niche insurance markets. The company, which has been a prominent player within the insurance sector since its establishment in 1923, delivers specialized solutions across various fields, ensuring tailored support for its partners and clients.

The acquisition of Everett Cash Mutual is not just a transaction; it represents a strategic enhancement of Old Republic's capabilities in agricultural insurance and a commitment to expanding its reach within the market. As regulatory reviews progress, stakeholders and clients alike are keenly watching this development, knowing it could redefine their operational landscape. Old Republic’s extensive history of underwriting excellence, coupled with ECM's legacy, sets a promising tone for future growth and performance.

In an industry where position and functional expertise are crucial, Old Republic is taking calculated steps to fortify its market stance, a move that carries implications for its competitive strategy moving forward. Stakeholders are hopeful that this merger will yield mutual benefits, paving the way for collective success in the ever-evolving insurance sector.