ORI Reports Third Quarter Loss

While Old Republic International Corp., Chicago, saw a slight improvement in its third quarter net results, the company's operating loss worsened by nearly 46% over the same period last year. ORI had a net loss of $46.2 million ($0.20 per share), compared with a net loss of $48.0 million ($0.21 per share) for the third quarter 2008. The most recent results benefited from deferred income tax credits of $20.5 million. Otherwise, ORI had an operating loss of $66.1 million for the most recent period, compared with an operating loss of $45.3 million in the prior year quarter. The mortgage guaranty segment at ORI saw its pretax operating loss deepen by 5%, to $160.4 million from $152.8 million in the third quarter of 2008. The claims ratio during the period increased to 214% from 203%. However, ORI's title insurance business had a pretax operating profit of $4.0 million, compared with a loss of $9.7 million in the third quarter 2008. There was growth in title premiums because of high refinancing activity earlier this year and because of shifts in market share resulting from LandAmerica exiting the title business. But ORI added claim costs also rose at a quicker pace as it added moderately to reserves to address emerging claims trends.