Old Republic Enters Agreement To Sell Its Mortgage Insurance Business - Quick Facts

(RTTNews) - Old Republic International Corporation (ORI) has entered into a definitive agreement to sell its mortgage insurance business to Arch Capital Group Ltd. Arch U.S. MI Holdings will acquire all of the capital stock of Old Republic's subsidiary, RMIC Companies, Inc., and its wholly-owned subsidiaries that together comprise Old Republic's run-off mortgage insurance business. Consideration is anticipated to be approximately $140 million. Old Republic expects to receive a final fourth quarter dividend of $25 million.

Old Republic CEO, Craig Smiddy, said "Since placing this business in run-off in 2011, we have been able to preserve significant value for shareholders. In the last five years our run-off reserves have developed favorably, enabling us to receive over $398 million of dividends from these subsidiaries, inclusive of the $25 million expected in the fourth quarter."