Current report filing
Filed on 01/25/2012
Filed Period 01/25/2012
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report: (Date of earliest event reported) January 25,
2012
OLD REPUBLIC INTERNATIONAL CORPORATION
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(Exact name of registrant as specified in its charter)
Delaware | 001-10607 | 36-2678171 | ||
(State or other jurisdiction | (Commission | (I.R.S. Employer | ||
of incorporation) | File Number) | Identification No.) |
307 North Michigan Avenue, Chicago, Illinois 60601
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(Address of principal executive offices) (Zip Code)
(312) 346-8100
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(Registrant's telephone number, including area code)
N/A
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(Former name or former address, if changed since last
report)
Check the appropriate box below if the Form 8-K filing is
intended to simultaneously satisfy the filing obligation of
the Registrant under any of the following provisions (see
General Instruction A.2 below):
o Written communications pursuant to Rule 425 under the
Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the
Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b)
under the Exchange Act (17 CFR 140.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c)
under the Exchange Act (17 CFR 240.13e-4(c))
Background:
Old Republic's flagship mortgage guaranty insurance
subsidiary, Republic Mortgage Insurance Company ("RMIC") had
been operating pursuant to a waiver of minimum state
regulatory capital requirements since late 2009. The waiver
expired on August 31,
2011. The business was then placed in run-off operating mode.
In this run-off situation the Company has collected renewal
premiums, participated in industry modification activities,
and paid valid claims on policies in force as of August 31,
2011. No new business has been written since the latter
date.
On January 19, 2012 the North Carolina Department of
Insurance ("NCDOI") issued an Order of Supervision
("Order") providing for its immediate administrative
supervision of RMIC's run-off operations. The Order responds
to the situation caused by unprecedented losses resulting
from all the factors of which you are well aware.
Supervision is an administrative proceeding under North
Carolina law. It gives the NCDOI more oversight and control
with the objective of allowing the insurer to develop a
corrective plan subject to the Department's approval. It is
unlike receivership which involves rehabilitation or
liquidation of a company pursuant to a formal, court-ordered
proceeding. Receivership results in its assets and management
passing to a receiver who is overseen by a court. Moreover,
supervision, unlike receivership, does not constitute an
event of default by RMIC or its parent holding company with
regard to any of their respective debt obligations.
Effect of the Order of Supervision on RMIC's Operations
Including the Payment of Claims:
Under the Order, RMIC continues to manage the business
through its employees, and retains its status as a
wholly-owned subsidiary of its parent holding company, Old
Republic International Corporation. The Order specifies that
RMIC may not engage in certain activities and transactions
without the prior written approval of the NCDOI Commissioner
or his appointed representative for supervision. Most
significantly, the Company may not enter into material
transactions, may not incur any debt or other liabilities,
may not lend any of its funds, and it may not terminate or
enter into new contracts of insurance or reinsurance without
approval.
The primary impact on policyholders and their beneficiaries
is the Order's requirement that RMIC may not pay more than
fifty percent of any claims allowed under any policy of
insurance it has issued. The remaining fifty percent shall be
deferred and credited to a temporary surplus account on the
books of RMIC during an initial period not to exceed one
year. Accordingly, all claim payments made on January 19,
2012 and thereafter will therefore be made at the rate of
fifty percent.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act
of 1934, the Registrant has duly caused this report to be
signed on its behalf by the undersigned thereunto duly
authorized.
OLD REPUBLIC INTERNATIONAL CORPORATION Registrant
Date: January 25, 2012 By: /s/ Spencer LeRoy III Spencer
LeRoy III
Senior Vice President, Secretary and General Counsel
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Documents associés | |
Old Republic International Form 8-K January 25, 2012 |