News Breaks
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| 15:11 EDT |  | ORI |
| theflyonthewall.com: | Old Republic to file Q3, Form 10-Q with unresolved revenue accounting matter | | Old Republic International announced that it will shortly file its third quarter 2009 Form 10-Q report with the SEC. The filing will take place even though the company's independent auditors, PricewaterhouseCoopers LLP have communicated their disagreement with the company's treatment of certain third quarter 2009 reinsurance transactions consummated by the company's Mortgage Guaranty subsidiary. PwC has informed the company that based on its analysis of the transactions and interpretation of generally accepted accounting principles, it has concluded that immediate recognition of a gain in the amount of $82.5M is required in the third quarter of 2009. In addition, PwC has advised that, as a result of this disagreement, it is unable to complete its review of the company's consolidated financial statements included in the third quarter 2009 Form 10-Q. In Old Republic management's opinion, recognition of the $82.5M initial front end risk premium as a current period revenue and bottom line gain would create the appearance of much improved third quarter 2009 results when none existed or occurred. Given the economic substance of the transactions, the appearance so created would also cause misleading inferences relative to such matters as trends in premium revenue and claim costs as well as the actual underwriting results of Old Republic's Mortgage Guaranty line for the nine quarterly periods since the onset of economic dislocations. In view of the un-reconciled financial accounting positions taken by the company and its independent auditors, Old Republic intends to petition the SEC to seek resolution of the matter. :theflyonthewall.com |
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