only 2 out of 3 rulings on that suit were settled....
presumably ORI puts away reserves depending on whether they think they will win/lose...in the 10q they indicate that they expected to win and therefore nothing was put aside....the rulings in April is what spurred them to take additional claims expenses
The key is to a) make sure what they did in March with xfer of risk is valid and b) find out about ORIGENCO.....
Even if there is little capital (from increased loss reserves based on the "model"), there is a good chance that CCI subs are still cash-flow positive so any settlement can have an impact
Just to be clear, this is the exact wording from the filing...to me, it is still misleading as the increase in expense must be from this settlement, but I dont think they made this clear. But it would seem this suit is done:
"The suit was settled on April 27, 2012 in return for a complete termination of the policy in question. The company's obligations under this settlement were considered during its periodic loss reserving process. "
my bad kev...looks like u r right....i will take another look again but it makes sense since my guestimate was that the payment on the 700 fdic's loans in default would have only amounted to 10mn or so still leaving 50mn in CCI claims for q2...since the total FDIC suit was for 40+ damages, this Qs reserve sounds like a settlement occurred....why aldo didn't just tell us i don't know....BOA is bigger...160mn + I believe on already defaulted loans
From the filing (from the spin) it says the suit was settled in exchange for complete termination of the policy. That would imply the entire thing was settled, not only 2 parts. Note, this isnt talking about a judgment or rulings, but a settlement.