PMI Posts $229 MM Loss

Because of losses and loss adjustment expenses in its U.S. and European operations, a decrease in premiums earned and net realized investment losses, the PMI Group Inc., Walnut Creek, Calif., posted a net loss of $229.4 million or $2.81 per share for the third quarter of 2008. Of that loss, $80.1 million or $0.98 per share came from discontinued operations, namely PMI Australia, PMI Asia and PMI Guaranty. In the third quarter 2007, PMI lost $86.8 million or $1.04 per share. Consolidated losses and LAE for the third quarter were $382.7 million, compared with $351.0 million one year prior. Net premiums written fell to $176.5 million from $218.8 million for the third quarter of 2007. Its U.S mortgage insurance operations lost $137.1 million for the quarter, compared with a loss of $65.2 million the year prior. Persistency increased from 73.3% in the third quarter of 2007 to 81.0% for the most recent period. PMI reported an after tax equity in losses of $0.1 million from its CMG joint venture vs. after tax equity in earnings of $2.7 million for the third quarter 2007.