PMI Group Takes $178.9MM Net Loss in Quarter

The PMI Group, Walnut Creek, Calif., took a net loss for the fourth quarter of $178.9 million ($2.19 per share), which included a loss from continuing operations of $181.0 million ($2.22 per share). This is a vast improvement over the $1.0 billion ($12.76 per share) loss PMI posted in the fourth quarter 2007. For the full year 2008 PMI lost $928.5 million ($11.40 per share), compared with a loss of $915.3 million ($10.81 per share) in 2007. The big issue that impacted PMI's 2007 annual and fourth results was its investment in FGIC; PMI wrote off that investment in the second quarter of 2008. The company said the loss from continuing operations for the fourth quarter of 2008 was primarily due to losses and loss adjustment expenses in the U.S. mortgage insurance operations and PMI Europe, a decrease in premiums earned and higher net realized investment losses, primarily from the impairment of certain corporate preferred equity securities in U.S. MI operations' investment portfolio. The U.S. MI business had an operating loss of $174.1 million for the fourth quarter and $709.5 million for the year. One year ago, it lost $236.0 million for the quarter and $190.8 million for the year.