Old Republic cancels RMICC recap


Unable to get terms acceptable to it, Old Republic (ORI -0.8%) cancels plans to go to the markets to recapitalize its mortgage guaranty subsidiary. Instead ORI will shore up capital with an infusion from the holding company.

CEO Al Zucaro: "While this outcome is disappointing, it does not alter our overall, long-term business objectives ... Contemporaneously, RMICC is seeking regulatory approval to increase substantially or possibly restore to 100% the pay-out on deferred claim obligations and on all legitimate new claim settlements from 2014 forward."

CC at 11 ET

Comments (1)
  • Douglas E. Johnston
    , contributor
    Comments (1773) | Send Message
     
    what does that mean? I though ORI was immune to that sub...now they have to infuse cash?
    20 Mar 2014, 11:58 AM Reply Like
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