Volume 2014 - Number 12
March 27, 2014
Old Republic Encounters Cold Reception in Capital Markets,Will Use Own Funds to Prop Up Ailing MI
Old Republic International has abandoned plans to recapitalize its mortgage guaranty subsidiary for lack of investor interest and will tap its own resources to boost the regulatory capital of its ailing MI companies while trying to pay off remaining claims, according to top company executives. The decision was due to ORI’s unsuccessful bid to attract new investors under the terms and conditions laid out by the RMIC Companies, which constitutes Old Republic’s consumer credit indemnity and mortgage guaranty lines of business. The two operations are currently in runoff mode and have not written any new business since 2008 and 2011, respectively. While the failure to attract fresh funding was disappointing, it does not change...
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