PMI Reports $274M 1Q Loss

The PMI Group Inc., a mortgage insurer based in Walnut Creek, Calif., has reported a net loss of $274.0 million ($3.37 per share) in the first quarter, compared with net income of $102.0 million ($1.16 per share) a year earlier. PMI attributed the loss chiefly to a net loss of $172.5 million in its U.S. mortgage insurance operations due to increases in paid claims, loss-adjustment expenses and additions to loss reserves, and an other-than-temporary impairment of its investment in FGIC. Net premiums earned in the U.S. MI operations totaled $207.8 million, up 7.2% from $193.8 million a year earlier, PMI reported. In PMI's international operations, PMI Australia reported record net income of $30.5 million for the first quarter, PMI Europe reported a net loss of $13.9 million, and PMI Asia reported net income of $2.7 million. PMI Group can be found on the Web at http://www.pmigroup.com.