Better MI, Title Results at Old Republic

The second quarter 2009 operating results for Old Republic International Corp., Chicago, were aided by lower production and operating expenses at its mortgage insurance subsidiary and stronger revenue growth at its title insurance unit. Still, the company had an operating loss of $49.6 million (down slightly from $49.9 million one year ago) and a net loss of $15.8 million, compared with $364.7 million one year ago. ORI said it also benefited from deferred income tax credits that could not be recognized previously. Republic Mortgage Insurance Co. had a pretax operating loss of $137.9 million, an improvement over the second quarter 2008's loss of $140.7 million. The claims ratio increased to 197.7% for the most recent period, up from 192.5% one year prior. Total primary insurance written for the quarter was $2.5 billion, down from under $6 billion one year ago. The delinquency ratio for the primary channel was 12.91% and the bulk channel 24.57%, vs. 6.92% and 11.29% one year prior. Meanwhile, the title insurance unit had an operating profit for the first time since the second quarter of 2007. The pretax operating income was $5.6 million, compared with a loss of $4.5 million one year ago, as Old Republic Title Insurance Co. benefited from the refinance boom and gains in market share as a result of industry "dislocations and consolidations."