The PMI Group Inc., Walnut Creek, Calif., lost $127 million in the first quarter 2011, as its U.S. mortgage insurance business had a net loss of $137 million for the period due to continued high losses and loss adjustment expenses and lower premiums earned.
For the same period in 2010, the company lost $157 million while the U.S. business lost $122 million.
In April, after the quarter ended, PMI Europe repatriated $14.5 million to PMI's U.S. mortgage insurance subsidiary. The company said it also has a request for additional capital repatriation outstanding with regulators at PMI Europe and PMI Canada. The U.S. subsidiary finished the first quarter with a risk-to-capital ratio of 24.4:1.
The company said it expects to be out of compliance with the 25:1 risk-to-capital ratio 16 states require, including Arizona where it is based.
Arizona regulators told the company it would not need a waiver to continue to write business there but that they would continue to evaluate the minimum policyholder position along with all other measures of PMI's business operations and financial position in assessing its liquidity and financial resources.
The number of primary loans in default decreased to 119,748 as of March 31, from 127,478 as of Dec. 31, 2010, while new notices of default received in the first quarter totaled 24,754 compared to 28,664 in the fourth quarter of 2010.
New insurance written was approximately $1.5 billion in the first quarter, an increase of 53% from the first quarter of 2010.
