Specialty insurer investing excess cash; Old Republic initiates buyback, acquisition plan. (Old Republic International Corp.)

Crain's Chicago Business, July, 1996 by Murphy, H. Lee

Flush with excess cash, Old Republic International Corp. has embarked on a spending spree, boosting dividends while buying back common stock and redeeming old debt. Chicago-based Old Republic, a specialty insurance company, has been notable for its conservative balance sheet. At the end of the first quarter, for instance, Old Republic was carrying nearly $2 billion in capital, about twice the statutory requirement.

Now, management is moving to invest some of the excess. In a rapid-fire series of announcements since February, Old Republic launched a $150-million stock buyback (slated to run over the next two years) and redeemed $30 million in 11.5% debentures due in 2015, $110 million of 5.75% convertible debentures due in 2002 and $75 million in 10% debentures due...

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