Old Republic posts deeper 3Q loss on mortgage insurance claims
Old Republic International (ORI) posted a third-quarter loss of $116.5 million, or 46 cents a share, as claims rose in the mortgage guaranty segment. Comparatively, Old Republic posted a loss of $38.9 million, or 16 cents a share, for the third quarter of 2010. However, the firm's general insurance and title insurance segments performed better than last year, with their operating revenue increasing 29.1% and 5.9%, respectively. Revenue for the period, rose to $1.1 billion, up from $986.2 million in 2010. The mortgage guaranty group reported further deterioration due to volatile market conditions. The value of insurance claims on mortgages rose 38.4% to $298.2 million, compared to $215.5 million a year ago. Meanwhile, net premiums earned on mortgage insurance fell 8.2% from $120.3 million last year to $110.4 million. Investment income from the mortgage guaranty business also plummeted 27.8%, hitting $15 million, compared to $20.7 million a year earlier. Write to Kerri Panchuk.