CHICAGO (AP) -- The insurer Old Republic International Corp. said Thursday it was profitable in the fourth quarter, as its investment gains quadrupled from a year earlier.
The company reported net income of $55.2 million, or 22 cents a share, for the three months ended Dec. 31. That compares with a loss of $13.3 million, or 5 cents a share, in the prior-year period.
Its earnings in the latest quarter were driven by some $127.6 million in investment gains. A year earlier, the company's investment gains totaled just $29.4 million.
Operating revenue for the quarter rose 3 percent to $1.18 billion, up from $1.15 billion in the same period in 2010.
Old Republic's general and title insurance segments each posted annual revenue gains in the quarter, while revenue fell at the company's troubled mortgage guaranty unit, Republic Mortgage Insurance Co. That business has been hurt by a decline in earned premiums and record claim costs.
In late 2009, Republic Mortgage received a waiver from state-mandated minimum capital requirements. But the waiver expired at the end of last August.
Last week, the unit received an order of supervision from insurance regulators in North Carolina. As a result, the company has been ordered to reduce the cash payouts on all claims by 50 percent during a period not to exceed one year.
For 2011, Old Republic reported a loss of $140.5 million, or 55 cents a share, compared with a profit of $30.1 million, or 13 cents a share, in 2010. Annual revenue climbed 13 percent to $4.53 billion from $4 billion the previous year.
Old Republic's shares rose a penny to $9.48 in afternoon trading. Its shares have traded in a 52-week range of $7.15 to $13.28.
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