Old Republic, RMIC announce changes in captive reinsurance programs

Thu. September 18, 2008; Posted: 06:33 AM

Sep 18, 2008 (Datamonitor via COMTEX) -- ORI | Quote | Chart | News | PowerRating -- Old Republic International, an insurance holding company, has announced that its flagship mortgage guaranty subsidiary, the Republic Mortgage Insurance Company and its affiliates will discontinue excess of loss reinsurance cessions to lenders' captive insurance companies.

The terminations will take effect December 31, 2008, or as of such dates as are permitted by existing contractual arrangements. Following their termination, all excess of loss reinsurance contracts will run off pursuant to their terms.

The discontinuation of excess of loss reinsurance contracts notwithstanding, the Republic Mortgage Insurance Company (RMIC) will continue to offer traditional pro-rata reinsurance arrangements to lender captive insurers.

Under such contracts, insurance captives dedicated to assumptions of RMIC-underwritten business will receive an agreed-upon pro-rata percentage of the mortgage guaranty premiums produced by the lender, be responsible for an equivalent percentage of paid claims and related claim and contingency reserves, and pay appropriate underwriting expenses.

The captives' capital at risk will be expected to be aligned with RMIC's own enterprise risk management metrics, and the capital requirements of state insurance regulations. Existing and new quota share reinsurance placements will assure necessary commonality of interests among insurer and reinsurer and thus provide transparency of capital commitments for mortgage guaranty insurance buyers, regulators, rating agencies, and investors.

http://www.datamonitor.com

Republication or redistribution, including by framing or similar means, is expressly prohibited without prior written consent. Datamonitor shall not be liable for errors or delays in the content, or for any actions taken in reliance thereon

For full details on Old Republic Internat (ORI) click here. Old Republic Internat (ORI) has Short Term PowerRatings of 5. Details on Old Republic Internat (ORI) Short Term PowerRatings is available at This Link.

More News: Market Updates | Stock Alerts | All Trading News | Stock Index

Archives

Feedback

Email Article Link

Close X

RELATED SITES

Please call 1-213-955-5858 ext. 1

Tax Relief Bank Levy Wage Garnishment

Disclaimer:

The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.

It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.

HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.

The Connors Group, Inc.
15260 Ventura Blvd., Ste. 2200
Sherman Oaks, CA 91403

All analyst commentary provided on TradingMarkets.com is provided for educational purposes only. The analysts and employees or affiliates of TradingMarkets.com may hold positions in the stocks or industries discussed here. This information is NOT a recommendation or solicitation to buy or sell any securities. Your use of this and all information contained on TradingMarkets.com is governed by the Terms and Conditions of Use. Please click the link to view those terms. Follow this link to read our Editorial Policy.