ORI quells liquidity crisis fears, explains mortgage insurance reversal

Old Republic International Corp. has withdrawn the previously announced spin-off of its troubled Republic Financial Indemnity Group Inc. subsidiary stock to ORI shareholders and the partial buyout has been reversed. These decisions are in response to objections raised by certain stakeholders that RFIG’s separation from Old Republic would be disadvantageous to their interests and expectations. The company explained the rationale for the change in strategy during a conference call Tuesday and addressed multiple questions from investors regarding an unforeseen liquidity crisis down the road.