Old Republic Reports North Carolina Department of Insurance Issuance of a Final Order Approving the Flagship Mortgage Guaranty Subsidiary’s Corrective Plan
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- Provide for the payment of all valid claims settled on
January 19, 2012and thereafter in cash with respect to 60% of the total claim amounts, and with a Deferred Payment Obligation ("DPO") for the remaining 40% which will be retained in claim reserves until a future pay-out date;
- Authorize RMIC to continue with its management of the DPO-based run-off plan during an estimated ten year period ending on
December 31, 2021. During this period RMIC would remain within ORI's ownership and control, as well as under NCDOI regulatory supervision as has been the case since January of this year.
The Final Order results from a Hearing held on
The approval of the Plan notwithstanding, the NCDOI retains its regulatory supervisory powers to review and amend the terms of the Plan in the future as circumstances may warrant.
In making the announcement,
The Company is organized as an insurance holding company whose subsidiaries actively market, underwrite, and provide risk management services for a wide variety of coverages mostly in the general and title insurance fields. A long-term interest in mortgage guaranty and consumer credit indemnity lines has devolved to a run-off operating mode in recent times.
The nature of Old Republic's business requires that it be managed for the long run. For the 25 years ended in 2011, the Company's total market return, with dividends reinvested, has grown at a compounded annual rate of 9.1 percent per share. For the same period, the total market return, with dividends reinvested, for the S&P 500 Index has grown at a 9.3 percent annual compound rate. During those years, Old Republic's shareholders' equity account, inclusive of cash dividends, has risen at an average annual rate of 10.8 percent per share, and the regular cash dividend has grown at a 10.0 percent annual compound rate. According to the most recent edition of
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Old Republic International visit www.oldrepublic.com