Old Republic Aligns Construction Insurance Subsidiaries

Rhea-AI Summary

On January 5, 2021, Old Republic International Corporation (NYSE: ORI) announced the integration of Old Republic Contractors Insurance Group (ORCIG) into BITCO Corporation. Consequently, ORCIG will be renamed BITCO Construction Group, streamlining operations under Vince Lamb, CEO of BITCO. Craig Smiddy, Old Republic's President, highlighted that this merger creates opportunities for agents, brokers, and customers, enhancing their capabilities in the U.S. construction insurance market. The unification aims to deliver comprehensive solutions across various construction account sizes.

Positive

• Integration of ORCIG into BITCO enhances operational efficiency.
• Combined expertise in construction insurance improves market reach.
• Creation of a top-tier construction insurer strengthens competitive positioning.

Negative

• None.

CHICAGO, Jan. 5, 2021 /PRNewswire/ -- Old Republic International Corporation (NYSE: ORI) announces the alignment of Old Republic Contractors Insurance Group, Inc. (ORCIG), previously a stand-alone underwriting affiliate of Old Republic, into BITCO Corporation (BITCO), another wholly-owned subsidiary of Old Republic. As a result of this change, ORCIG's name will be changed to BITCO Construction Group, Inc. reflecting this new affiliation, and its operations will report to Vince Lamb, President and Chief Executive Officer of BITCO.

Craig Smiddy, Old Republic International's President and CEO noted, "Old Republic has participated in the construction insurance marketplace for many years.  More recently, the construction classes have been a focus of both BITCO and ORCIG, each targeting similar types of risks in different geographies and through different distribution systems. ORCIG has historically concentrated on larger construction risks while BITCO's focus has been more directed towards middle market risks.  Both entities have developed significant levels of expertise in the operational disciplines required to be successful in this important sector of the U.S. insurance market. Bringing the businesses together creates significant opportunities for our collective agent and broker partners, our insured customers, as well as our associates." 

"We are bringing together two deep and talented organizations that can now approach the U.S. construction marketplace on a united front, with coast to coast capabilities to accommodate virtually all sizes of construction accounts.  Combining these specialty units allows us to provide our comprehensive insurance solutions to a broader part of the U.S. construction marketplace.  We look forward to aligning our construction business in the coming months. Working together with a continued focus on our customers and distribution partners as our chief priority, we believe this combination creates  a top-tier construction insurer in the United States", Smiddy added. 

About Old Republic
Chicago-based Old Republic International Corporation is one of the nation's 50 largest shareholder-owned insurance businesses. It is a member of the Fortune 500 listing of America's largest companies. The Company is organized as an insurance holding company whose subsidiaries actively market, underwrite, and provide risk management services for a wide variety of coverages mostly in the general and title insurance fields. A long-term interest in mortgage guaranty and consumer credit indemnity coverages has devolved to a run-off operating mode in recent years. Old Republic's general insurance business ranks among the nation's 50 largest, while its title insurance operations are the third largest in its industry.

The nature of Old Republic's business requires that it be managed for the long run, and its cash dividend policy reflects this long-term orientation. Here's a summary of recent years' total book and market returns, which includes the addition and reinvestment of cash dividend payments, in comparison with the financial performance of three selected indices similarly developed.

	ORI			Selected Indices' Compounded
	Annual Book Value Compounded Total Return		Annual Market Value Compounded Total Return	Total Annual Returns
				Nominal  Gross Domestic Product	S & P 500 Index	S & P P&C Insurance Index
Ten Years 2000 - 2009	9.5%		7.4%	4.1%	-1.0%	4.7%
Ten Years 2010 - 2019	7.7%		14.8%	4.0%	13.6%	14.5%
Twenty Years 2000 - 2019	8.6%		11.0%	4.1%	6.1%	9.5%

According to the most recent edition of Mergent's Dividend Achievers, Old Republic is listed in 58th place among just 113 qualifying publicly held companies, out of thousands considered, that have posted at least 25 consecutive years of annual dividend growth.

For Old Republic's latest news releases and other corporate documents:
Please visit us at www.oldrepublic.com 

Alternatively, please write or call:  Investor Relations
Old Republic International Corporation
307 North Michigan Avenue, Chicago, IL 60601
(312) 346-8100

At Old Republic:	At Financial Relations Board:
Craig R. Smiddy: President and Chief Executive Officer	Analysts/Investors: Joe Calabrese 212/827-3772

 

View original content:http://www.prnewswire.com/news-releases/old-republic-aligns-construction-insurance-subsidiaries-301201258.html

SOURCE Old Republic International Corporation

FAQ

What recent change did Old Republic International make regarding its subsidiaries on January 5, 2021?

Old Republic International announced the integration of its subsidiary Old Republic Contractors Insurance Group into BITCO Corporation, rebranding ORCIG as BITCO Construction Group.

How does the merger of ORCIG and BITCO affect Old Republic International's market position?

The merger is expected to enhance Old Republic's capabilities in the U.S. construction insurance market by combining expertise and expanding service offerings.

Who will oversee the operations of BITCO Construction Group after the merger?

Vince Lamb, the President and CEO of BITCO, will oversee the newly formed BITCO Construction Group.

What are the anticipated benefits of bringing ORCIG and BITCO together?

The integration aims to create significant opportunities for agents, brokers, and customers, allowing for a broader approach to the construction marketplace.