Fitch Affirms Ratings Of Old Republic Title Group At 'AA-'.Business Editors CHICAGO--(BUSINESS WIRE)--Jan. 24, 2002 Fitch has affirmed the 'AA-' insurer financial strength ratings of the Old Republic Title Group (ORT), which consists of the following title insurance companies: Old Republic National Title Insurance Co., Old Republic General Title Insurance Corp., Mississippi Valley Title Insurance Co. and American Guaranty As a verb, to agree to be responsible for the payment of another's debt or the performance of another's duty, liability, or obligation if that person does not perform as he or she is legally obligated to do; to assume the responsibility of a guarantor; to warrant. Title Co. The Rating Outlook is Stable. ORT's ratings are supported by its position as a national title insurer, and conservative capital position as measured by Fitch's risk-adjusted capital (RAC See remote access concentrator. ) ratio. ORT is owned by Old Republic International Corp. (NYSE NYSE See: New York Stock Exchange : ORI), a publicly traded insurance organization, with interests in property/casualty, title, mortgage guaranty, and life insurance. The support and financial flexibility that ORI provides ORT is factored into the ratings. ORI reported consolidated GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). assets of $7.8 billion and stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. of $2.7 billion at Sept. 30, 2001. ORT has maintained its market share, but as the smallest of the national title insurers, it is continually challenged to retain its competitive position and grow market share. ORT's consolidated GAAP revenue and fees for the first nine months of 2001 were $466 million, up from $384 million in the comparable period in 2000. Pretax operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. over the same period was $52.8 million, which already exceeds the figure for full-year 2000. Title insurance in general benefited from a declining interest rate environment during 2001, which triggered a refinancing Refinancing An extension and/or increase in amount of existing debt. boom. However, industry results are expected to decline in 2002 as the real estate market is negatively impacted by the economic recession. Fitch uses its own risk-adjusted capital ratio to measure the capital adequacy of title insurance companies. ORT's risk-adjusted capital ratio was the highest of the national title insurers at 265%, and contributes to its insurer financial strength ratings. Entity/Issue/Type Action Rating/Outlook Old Republic National Title Ins. Co. --IFS Affirmed 'AA-'/Stable Old Republic General Title Ins. Corp. --IFS Affirmed 'AA-'/Stable Mississippi Valley Title Ins. Co. --IFS Affirmed 'AA-'/Stable American Guaranty Title Ins. Co. --IFS Affirmed 'AA-'/Stable |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion