Old Republic Buys Stakes in PMI, MGIC

The parent company of Republic Mortgage Insurance Co., Old Republic International Corp., Chicago, has disclosed the acquisition of significant equity positions in two of its rivals in the mortgage insurance business.ORI has purchased over 12 million shares of PMI Group Inc., Walnut Creek, Calif., over an 11-week period in open-market purchases. This represents a 15.1% stake in that company. At the same time, it has bought 8.98 million shares of MGIC Investment Corp., Milwaukee, in the open market, giving ORI an 11.0% stake. In a Securities and Exchange Commission filing, ORI said it intends to hold the stakes "strictly as passive investments and not for the purpose of or with the effect of changing or influencing control" of either company. As of midday Nov. 12, ORI was trading at $15.23 per share, up $0.16 from its close on Nov. 9, when the news became public. PMI stood at $14.92, up $0.04, and MGIC was at $22.07, up $0.77.