PMI Cuts Loss Estimate

The PMI Group Inc., Walnut Creek, Calif., has reduced its estimate of total incurred losses for the current calendar year for its U.S. mortgage insurance operations.Previous guidance had projected total incurred losses of $260 million to $280 million, but the company now estimates the figure at $220 million to $240 million. This is because PMI is seeing lower-than-expected new delinquency notices and stronger-than-expected employment growth, and it has strengthened its loss mitigation activities. Reduced opportunities for bulk insurance writings is one of the reasons cited for a revised guidance of a 2%-7% increase in U.S. primary insurance in force, down from 5%-15%. Finally, net income from international mortgage insurance operations should increase $16 million to $20 million from last year's results, compared with previous guidance of an increase of $8 million to $9 million, the company said.