Old Republic Reduces Stake in MGIC by 28% as Mortgage Insurer Posts Losses
Old Republic, based in Chicago, owned 13.5 million shares on Jan. 14, according to a regulatory filing today. That’s down from 18.6 million as of Jan. 13, 2010.
MGIC, led by Chief Executive Officer Curt Culver, posted a fourth-quarter loss on Jan. 19 that was wider than analysts predicted. The Milwaukee-based company fell the most in 22 months after the earnings announcement, and is still up 43 percent in the past year.
Restoring profits in the mortgage-insurance industry is like “turning a battleship in the middle of the Hudson River,” Old Republic CEO Aldo Zucaro said in an April interview. “You got to back it out. It’s a slow process.”
MGIC declined 13 cents, or 1.4 percent, to $9.07 as of 4 p.m. in New York Stock Exchange trading. Old Republic fell 11 cents to $12.89 and has gained 19 percent in the past year.
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