S&P downgrades Old Republic mortgage insurers
Standard & Poor's lowered its rating for the Old Republic (ORI) mortgage insurance business to double-C from B-plus Friday. Old Republic reported $116.5 million in losses for the quarter, also roughly triple the losses from one year ago. S&P currently rates Republic Mortgage Insurance Co. and Republic Mortgage Insurance Co. of North Carolina, together known as RMIC, at double-C. RMIC is a subsidiary of Old Republic. As it stands, the firm is still paying out claims, collecting premiums but is not writing new business. It's been in voluntary runoff since August and is generating almost no revenue from new premiums. "As a result we expect statutory capital to go negative, increasing the likelihood of a regulatory takeover of the mortgage insurance companies," S&P said. Write to Jon Prior. Follow him on Twitter @JonAPrior.