Old Republic's Title Operating Income Down 6% in 2Q

Old Republic International Corp.'s title insurance business had a 6% decline in pretax operating income year-over-year for the second quarter as costs rose greater than premium and fee revenue.

There was $44.6 million in pretax operating income for the period, down from $47.7 million in the second quarter last year, although net premiums and fees earned rose 4% to $524.5 million.

But operating expenses grew by nearly 6% as claims costs rose 7% to $26.8 million and sales and general expenses grew by 6% to $460.4 million.

Meanwhile, its mortgage insurance business, which has not written any new policies since August 2011, had pretax operating income of $29.9 million, up 44% from $20.8 million one year prior.

Net premiums earned, from monthly policies that are still on its books, fell nearly 23% to $38.7 million but claims costs fell nearly 70% to $9.3 million.

Old Republic's net income fell to $101 million from $102 million one year prior on the pretax operating income for its general insurance segment fell by $5 million and investment gains declined by $10 million.