Standard & Poor's Affirms Ratings on Old Republic Title Insurance Group

Standard & Poor's today affirmed its double-'A'-minus counterparty credit and financial strength ratings on the Old Republic Title Insurance Group (ORTIG). The ratings reflect the implicit support extended to ORTIG from its parent, Old Republic International Corp., and Standard & Poor's view that ORTIG is strategically important to the ORI organization. The outlook is stable, with consideration given for ORTIG's improving expenditure management, conservative investment portfolio, and reserving methodologies that support a very strongly capitalized group.

Key Takeaways:

• Standard & Poor's affirmed double-'A'-minus counterparty credit and financial strength ratings on Old Republic Title Insurance Group (ORTIG).
• The ratings reflect implicit support from parent company, Old Republic International Corp. (ORI), and ORTIG's strategic importance to the ORI organization.
• Stable outlook due to ORTIG's improving operational efficiencies and strong expense controls.
• ORTIG faces challenges in strengthening its technological resources and brand equity to remain a viable competitor.
• Expecting ORTIG's expense ratio to be 91%-94% in 2000 and 2001, with an ROR of about 6%-8%.
• ORTG has conservative investment portfolio and reserving methodologies supporting a very strongly capitalized group.

Statistics:

• 91%-94%: Expected expense ratio for ORTIG in 2000 and 2001
• 6%-8%: Expected ROR (Return on Revenue) for ORTIG in 2000 and 2001

Sources:

• Standard & Poor's press release, November 9, 2000
• CreditWire article, November 9, 2000