Old Republic International Corporation (ORI) announced that it is funding the establishment of a joint underwriting venture with certain principals long associated with specialty insurance.
The new venture – Old Republic Specialty Insurance Underwriters, Inc. (“ORSIU”) – will target two specific segments of the general insurance market place, namely program business produced by Program Administrators and market insurance necessity of Public Entity and Non-Profit organizations.
This new underwriting joint venture will be handled as a specific insurance underwriting body. The growth objectives in the venture are expected to prove beneficial going forward. Notably, Old Republic will draw the required capital from the capital funds available internally. Additionally, the subsidiaries of Old Republic will provide complete resources like risk-bearing capacity, operating infrastructure, reinsurance, and retrocessional facilities to the new underwriting venture.
Old Republic has structured this venture like the previous lucrative undertakings by the company. William P. Franchi will spearhead the venture as its president and Thomas M. McGrath will be the chief operating officer. Both of them contributed to the development of outstanding intellectual capital and business relationships, accomplished over years of professional and client-based services.
The guidance of the senior executives will reflect Old Republic’s decade-long commitment and expertise in providing unique and state-of-the-art market solutions to North-American businesses and public service institutions’ insurance needs.
Currently, Old Republic carries a Zacks Rank #3 (Hold).
Stocks to Consider
Better-ranked stocks in the multi-line insurance industry include MGIC Investment Corp. (MTG), Ping An Insurance (Group) Company of China, Ltd. (PNGAY) and Cigna Corp. (CI). While both MGIC Investment and Ping An Insurance sport a Zacks Rank #1 (Strong Buy), Cigna holds a Zacks Rank #2 (Buy).
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