Old Republic Attributes 4Q Loss to Mortgage Businesses

As a result of problems in its mortgage guarantee and title insurance lines of business, Old Republic International Corp., Chicago, has reported a net loss of $126.5 million ($0.54 per share) for the fourth quarter 2008 and a net loss of $558.3 million ($2.41 per share) for the full year. For the same periods one year prior, the company had profits of $20.2 million ($0.09 per share) and $272.4 million ($1.17 per share). The mortgage insurance business had a pretax loss for the fourth quarter of $178.3 million, compared with a $112.6 million loss for same period in 2007. The title insurance segment saw its loss grow to $19.3 million for the fourth quarter 2008 vs. $15.7 million for the year ago period. In its statement, Old Republic said, "Given the continuing downtrend in U.S. economic activity and the substantial dislocations that have enveloped all organizations with housing and mortgage-lending exposures, it is likely that these factors will exert additional earnings pressures throughout 2009 and, at the least, a part of 2010."