Moody's may lift Old Republic

Moody's Investors Service said it placed the debt ratings of Old Republic International Corp. on review for possible upgrade following the company's announcement that it has sold a 20.6% common equity interest in its subsidiary, Republic Financial Indemnity Group, Inc., to a group of investors and intends to spin-off substantially all of Republic Financial's common stock to existing shareholders.

The agency said it also confirmed the insurance financial strength ratings of Old Republic's primary property and casualty insurance and title insurance subsidiaries with a stable outlook.

The agency said the rating actions are based on Old Republic's intention to spin-off its legacy mortgage insurance and credit indemnity lines, which Moody's considers to be the company's highest risk operations.

"The remaining company will be focused on traditional P&C and title insurance, where Old Republic has strong niches, good profitability and is well capitalized," said Moody's analyst Paul Bauer in a news release.

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