Old Republic Releases Second-Quarter Results
July 22, 2010
Old Republic’s Title Group reported a $4 million profit during the second quarter of 2010, but remained in moderately negative territory for the first half of the year as claim and operating expenses outpaced revenue growth, the company reported July 22.
Net premiums and fees reflected accelerating growth as the title group continued to gain market share from industry dislocations and consolidation. The consolidation of accounts from the Florida joint underwriting venture formed in mid-year 2009 with Attorneys’ Title Insurance Fund also added to this year's revenue stream. A greater invested asset base generated meaningful investment income growth even though market yields remain at relatively low levels.
Old Republic reported claim costs rose at a somewhat quicker pace than premiums and fees as the company added moderately to reserve provisions in consideration of recent claim emergence trends. Growth in production and general operating expenses reflected the greater costs associated with the much higher level of premiums and fees.
Old Republic’s direct offices opened 92,326 orders during the quarter, while closing 67,830. This compares to 98,225 opened orders and 73,717 closed orders during the second quarter of 2009.