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  • kevinf1_99 kevinf1_99 Oct 25, 2012 7:33 PM Flag

    ori CANNOT escape the liabilities of the cci business

    RFIG includes CCI, which is not walled off. Luckily, this quarter the impact was much lower, but dont confuse the MI business with the CCI business.

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    • You're right in that the RFIG business includes the CCI numbers, but ORI via the general insurance business is responsible for managing the runoff of CCI and not the Mortgage Insurance business (which I called RFIG, but you are correct in that it should be called MI).

      In the earnings press release though, they show the General Insurance Business results with and without the CCI business so you can see how profitable the remaining general insurance business will be once the CCI runoff is complete.

      • 2 Replies to bbarberayr
      • Yes, basically that is what I said...CCI is not walled off, but the MI parts of RFIG are presumably walled off. At least the impact from CCI was much lower than last quarter. But as I posted here and have written on seeking alpha, I am more concerned on CCI than the MI stuff. Since CCI is really hard to quantify the full exposure, alternatives, etc.

        So while you can see what it looks like without CCI impact, you really dont know that CCI will stop at a certain point, stay at losses of 6M per Q, dont know the timing, etc. I mean, we really have no way to know the max exposure, which I believe is one of the dark clouds hanging over the stock.

      • as I read it, the business line reserves are responsible for paying loses not ORI. Showing results but results don't impact ORI nor the other business lines.

 
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