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Old Republic International Corporation Message Board

  • bbarberayr bbarberayr Mar 20, 2014 2:01 PM Flag

    RMIC recap

    Well, the conference call didn't say much.

    The last earnings release showed that it's equity was around $0, so hopefully not too much capital will be required and he did say that he expects to make this capital back over time. SO, doesn't sound like the dividend will be hit.

    So, not sure why they did this, but hopefully as the housing market continues to improve, RMIC can become a viable business again.

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    • so looked at the 10-k last night....page 86 shows that RMIC has 518mn in statutory capital above the 357mn that is required (1/25 of risk in force) but that the DPO makes up 552 mn of that....so if they have to pay out the DPO and interest, call it 600mn, and get back to 357mn in capital, ORI would need to infuse ~500mn - note this is less than if it was floated cause fannie/freddie only allow 15 to 1 if u want to write new buz and ORI will not do that....

      Am i right? And if so, where does ORI the parent get the $$s from? I assume they can't just get $$$s from the subs? Do they have enough at the parent level to do this or would they issue?

      I bot this back in '12 but not sure I want to own now

      • 1 Reply to quantuon
      • I just got up from my nap. I was listening to the conference call and Al put me to sleep. I had to listen to it a second time. No need to, nothing in it. He was unwilling to answer the one question he had. He certainly doesn't care how the investment world perceives him.

        I believe the news is negative, but I do not think it affects the current dividend. But until they get caught up with all the back claims and the runoff is positive, it probably means they will continue with the miniscule .01 per year dividend increases. I don't know when they plan to have the back claims current. That would have been a good question for him. Since he didn't offer any comments on it and the conference call was a downer, I'm guessing they are years away from getting caught up.

        I own it for the dividend. I'll probably hold what I have for now since 4.5% beats what my bank pays. But I'm tempering my expectations for a major run in the stock price. I can't see Wall Street getting behind ORI until this albatross is finally gone. Luckily their other divisions are doing well.

    • they were going to put in 50mn when they floated right? and it was no longer going to be consolidated....so how much....200mn? 500mn? They want to get rid of the DPO so that they stop accruing interest....any idea the size of that? I think it will be a while before that capital comes back...got to pay freddie and fannie a bunch first....maybe get a tail in the distant future.....

 
ORI
14.29+0.20(+1.42%)Oct 20 4:02 PMEDT

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